×

Acquisition costs actually include several taxes and administrative fees levied by the state through a public official. In Switzerland, these costs vary significantly depending on the canton and can amount to between 3% and 5% of the property price:

  • The total amount of acquisition costs must be financed with equity, as banks generally do not include them in the mortgage.
  • The distribution of costs depends on the location of the property; some cantons such as Zurich have abolished transfer taxes, unlike Vaud or Geneva.
  • Anticipating recurring costs and post-purchase taxation is essential to ensure the long-term sustainability of your budget.


Notary fees

The notary is an essential public official in any real estate transaction in Switzerland. Their role is to ensure the legal security of the transfer of ownership by drafting the official deed of sale. Notary fees are broken down as follows:


Transfer tax

Transfer tax represents the largest expense when purchasing a property. It is a cantonal tax levied on the legal transfer of a property from one person to another. It is calculated based on the purchase price stated in the deed:

  • In French-speaking Switzerland, the rates are among the highest, reaching for example 3.3% in the canton of Vaud;
  • In Geneva, schemes such as Casatax allow for a reduction of this tax under certain price and usage conditions (primary residence);
  • Some German-speaking cantons (such as Zurich) have chosen to abolish this tax in order to facilitate access to home ownership.


Land Registry fees

The cantonal Land Registry is the official database that records all rights related to properties (owners, easements, charges). For you to be officially recognized as the owner, the notary must register the official deed of sale in this register.


Land Registry fees cover the administrative costs of the office. They are proportional to the purchase price and range from 0.1% to 0.5%.


Notary fees

The notary’s remuneration is governed by cantonal fee schedules, which may be fixed or decreasing depending on the property value. In French-speaking Switzerland, these fees generally range between 0.4% and 1% of the purchase price.


It should be noted that costs related to the creation of a mortgage note for the bank are added to this amount.


Creation of a mortgage note

If you borrow to purchase your property, the bank will require a guarantee: the mortgage note. This is a security representing a claim secured by a real estate lien. Its creation involves several costs:

  • Creation taxes (stamp duties or registration fees) and document costs, depending on the amount of the secured debt;
  • Land Registry fees for registering the lien;
  • Bank processing fees related to setting up the financing;
  • The cost of the property valuation commissioned by the bank to ensure that the property value adequately covers the loan granted.


Summary of notary fees by canton

Type of cost Geneva Vaud Valais Fribourg
Transfer tax

3,0%

3,3%

2,2%

1,5% - 3%
Land Registry fees

~0,3%

~0,3%

~0,2%

~0,3%
Notary fees (est.)

0,7%

0,6%

0,5%

0,6%
Indicative total

4,0%

4,2%

2,9%

3,5%


Recurring costs associated with property ownership

Becoming a property owner also means taking on annual expenses that affect your disposable income.

Maintenance and operating costs

It is generally estimated that around 1% of the property value should be set aside each year to cover repairs, maintenance of technical installations (heating, roof), and ongoing expenses such as water or electricity:

  • For a property worth CHF 1,000,000, you should plan for approximately CHF 10,000 per year;
  • In a condominium (co-ownership), this also includes contributions to the renovation fund, often calculated based on your ownership share;
  • Heating and electricity costs depend heavily on the building’s insulation and energy efficiency rating.


Annual taxation

Owning property in Switzerland is subject to several taxes:

  • The imputed rental value corresponds to a fictitious income (often between 60% and 70% of the potential rent) added to your taxable income;
  • Property tax is levied by certain cantons (such as Vaud or Fribourg), generally at a rate between 0.5% and 1.5% of the tax value;
  • Wealth tax is calculated on the net value of the property (tax value minus the mortgage debt) according to the applicable cantonal scale.


Long-term financing costs

The homeowner’s monthly budget must include mortgage interest paid to the bank as compensation for the loan. In addition, there is amortization, which corresponds to the repayment of part of the debt:

  • Interest depends on the chosen rate (fixed or SARON) and the total loan amount;
  • Mandatory amortization generally applies to the portion of the debt exceeding 65% of the property value. This amount must be repaid within 15 years or before retirement age, representing approximately 1% of the total debt per year.


FAQ: Learn more about acquisition costs

Who pays notary fees in Switzerland?

In most French-speaking cantons, acquisition costs are entirely borne by the buyer. However, the law sometimes allows a different distribution if the parties agree contractually, although this remains rare in practice.


Can the second pillar be used to pay notary fees?

No, pension fund assets (BVG/LPP) may only be used to build the equity required for purchasing the property itself. Notary fees, taxes, and administrative charges must be paid with personal funds.


What is the Casatax system in Geneva?

It is a scheme that allows for a significant reduction in transfer taxes and registration fees when purchasing a property intended to become your primary residence, provided that the purchase price does not exceed a certain threshold, which is adjusted annually.


Is it possible to take over the seller’s mortgage note?

Yes, and it is often an excellent financial move. Taking over an existing mortgage note avoids the costs of creating a new one. You will then only pay administrative transfer fees, which are significantly lower.


How can acquisition costs be reduced?

The main lever is to negotiate the transfer of existing mortgage notes. Additionally, choosing the canton of residence carefully can result in differences of several tens of thousands of francs for a property of identical value.