An overview of additional costs when buying a house

One-off payments when buying a house (additional costs)

• Notary costs
• Land register fees
• Fees for setting up the mortgage certificate
• Property transfer tax, if applicable
• Costs for property appraiser
• If applicable, capital withdrawal tax is due immediately (when financing with funds from pension fund or pillar 3a)
• Broker commissions, if applicable
• Real estate gains tax, if applicable (if the seller does not abide by this tax liability, it will be transferred to the seller, provided this is not contractually excluded)

Recurring additional costs after buying a house

• Maintenance work
• Provisions for larger renovations
• Running costs
• Insurance premiums
• Administration costs (for investment properties)
• Amortization and mortgage interest are regarded as recurring main costs

Let’s look at the most important additional costs more closely.

What notary costs can you expect?

Buying or selling a house is an official process and requires the services of a notary. The notary draws up the contract of sale and certifies it. In some cantons (e.g. the Canton of Solothurn), notaries are officially organized and registered, whereas in other cantons they work freelance.

Depending on the canton and municipality, fees can vary greatly. In Zurich, they are 0.1 percent of the purchase price, in Bern 0.5 percent.

Notary costs are highest in the Cantons of Geneva, Ticino, Bern and Valais and lowest in the Cantons of Schwyz, Appenzell Ausserrhoden, Schaffhausen and Zug.

Important information

The notary must be based in the canton where your new property is. The bearer of the notary costs must be contractually determined. Normally, the costs are divided equally between both parties.

Tip

In the Cantons of Aargau, Basel-Stadt, Basel-Landschaft, Bern, Fribourg, Jura, Neuchâtel, Uri, Vaud and Valais, notaries are organized on a freelance basis. This means that notaries are free to set their own estimates. Always compare fees and make the most of any chance to save!

How high are land register fees?

When a property comes under new ownership, it must be recorded in the land register. The administration costs are covered by the land register fees. There are differences between cantons in this respect, too. Like notary fees, however, the fees are under 1 percent of the market price or purchase price.

These costs are usually split equally between the buyer and seller. However, this must be agreed and clearly stated in the contract of sale.

How much does it cost to set up a mortgage certificate?

When a mortgage is taken out, a mortgage certificate is usually set up and entered into the land register. The mortgage certificate acts as security for the lender and certifies their right of lien for the corresponding property.

The notary costs for setting up and entering the mortgage certificate in the land register are around 0.1 to 0.3 percent of the pledged sum. As the buyer, you bear these costs.

Existing mortgage certificates can be transferred to the new homeowner. Mortgage certificates haven’t been available in paper form since 2012. They are instead issued as register mortgage certificates.

How high is the property transfer tax when buying property?

Some cantons levy a tax on property transfer or leave it to individual municipalities to decide if they want to levy a tax and how to do it.

Some cantons (e.g. Solothurn or Bern) levy no property transfer tax for owner-occupied properties, or only after a certain sum.

Property transfers are free from tax in the following cases:

• Between marriage partners
• From parents to children
• Inheritances and gifts for relatives (lineal ascendants or descendants)
• When converting from total ownership to co-ownership
• In case of a replacement purchase (purchasing another property for place of residence)
• Marital property disputes

Property transfer tax ranges from around 1 percent of the purchase price (Cantons of Thurgau, St. Gallen, Appenzell Innerrhoden, Nidwalden) up to 3 percent in Neuchâtel. The Swiss Tax Conference has put together an overview of fees and charges.

In most cantons, the buyer alone is responsible for paying the fees. Other cantons split the fees between the buyer and seller or allow both parties to sort it out amongst themselves.

How much does a building evaluation cost?

Before buying a house, it’s recommended to have experts check the structure to see if any renovation work is needed. You can get advice from civil engineers or architects in the region of 1,000 francs, depending on the building.

Recurring additional costs after purchase

As a homeowner, there are more than the finance costs (mortgage interest, amortization) to pay. There are also recurring additional costs. Expect to pay around 1 to 2 percent of the market value for these. Additional costs are mainly for

• Maintenance: about 0.5 to 1 percent of the market value
• Provisions for larger renovations: about 0.5 to 1 percent of the market value
• Insurance premiums (e.g. building insurance)
• Also for investment properties: administration costs for rentals: 3 to 6 percent of net or gross rental rate

Regular renovation is worth it

Experts say that a new property can expect its first renovation after around 10 years. Older properties may need renovation work much sooner. This can be very expensive.

Don’t scrimp when it comes to renovation work. Regular renovation is important to maintaining your property’s value. You can deduct maintenance and renovation costs from your taxes.

Additional costs when buying – a checklist

Take note of the following information to avoid nasty surprises when buying a property:

• Find out how high notary fees are in your canton.
• If there is no single notary body and notaries work freelance in your canton: compare costs from multiple notaries!
• Make sure you have sufficient cover for any additional costs when buying – they can easily reach up to 5 percent of the purchase price.
• Make sure you have sufficient cover for recurring additional costs and enough saved for value-maintaining renovation work: 1 to 2 percent of the purchase price.