Property transfer tax: definition

The property transfer tax is a tax levied when ownership of a property is transferred, i.e., when the home officially changes owner in the land register.

In practice, property transfer tax is most often calculated as a percentage of the purchase price (or the property’s official value) and is added to other acquisition costs such as the notary’s fees and the land registry fees. It is a cantonal (and sometimes municipal) tax: each canton decides whether it levies a property transfer tax, at what rate, and in which situations exemptions or reductions may apply.

In Switzerland, property transfer tax is therefore an integral part of the purchase costs you need to plan for when arranging a mortgage. Depending on the canton, property transfer tax can represent between around 1 % and more than 3 % of the purchase price, which can weigh heavily on the overall budget required to become a homeowner. In several French-speaking cantons (Vaud, Geneva, Neuchâtel, Fribourg, Valais, Jura), property transfer tax is a significant cost item, whereas some German-speaking cantons have abolished property transfer tax in the strict sense and charge only land registry and notary fees.

Key features of property transfer tax

Property transfer tax has three important features to keep in mind:

1. Cantonal / municipal tax

• Property transfer tax is set by the cantons, sometimes with an additional municipal surcharge. There is no federal equivalent: the Confederation does not levy any property transfer tax.
• In some cantons, the cantonal tax is supplemented by a municipal tax that can significantly increase the overall rate (for example up to 3.3 % in the canton of Vaud, or 3.0 % in Geneva).

2. Who pays property transfer tax?

• In most cantons, property transfer tax is paid by the buyer, unless the notarial deed provides otherwise.
• In a few cantons, property transfer tax is shared between seller and buyer (for example in Basel-Country, or in certain configurations in Lucerne or Fribourg).
• The notary (or the land registry office) generally collects all acquisition costs, including property transfer tax, before the deed is signed.

3. Impact on your mortgage financing

• Property transfer tax is part of the “acquisition costs” (together with notary, land registry, mortgage note), which often total 3 to 5 % of the purchase price depending on the canton.
• These costs – including property transfer tax – are generally not financed by the bank: they must be covered by your own funds, in addition to the required down payment (often 20 %).
• Failing to include property transfer tax in your financing budget can put you under pressure at signing with the notary, because the funds must be available in cash.

Beyond a standard purchase, property transfer tax may also apply in other situations:

• property transfers within a family (sometimes with reduced rates or exemptions);
• restructurings, exchanges, inheritance partitions, transfers to a real estate company, etc.

However, the rules vary widely from one canton to another. For a specific case, it is essential to check the legislation in your canton or request a detailed calculation from the notary.

Property transfer tax rates by canton

Important: this table provides an overview of property transfer tax levels. Exemptions, reductions (owner-occupation, first-time purchase, family transfers) and municipal surcharges can significantly change the final amount. This table is provided for information purposes only.

Example of property transfer tax in the cantons of Zurich and Vaud

Let’s imagine you buy an apartment as your primary residence for 900 000 CHF. Let’s see how property transfer tax can affect your budget in two different cantons.

1. Canton of Vaud

In the canton of Vaud, the cantonal property transfer tax is 2.2 % and the municipality can add up to a 50 % surcharge, which very often results in an overall rate of around 3.3 %.

• Purchase price: 900 000 CHF
• Overall property transfer tax rate (example): 3.3 %
• property transfer tax: 900 000 × 3.3 % = 29 700 CHF

On top of these 29 700 CHF in property transfer tax, you must also pay the notary’s fees and land registry fees. Overall, acquisition costs can easily reach 3.5 to 5 % of the purchase price, i.e., 31 500 to 45 000 CHF in this example, which you must cover with your own funds in addition to your down payment.

2. Canton of Zurich

In the canton of Zurich, property transfer tax has been abolished. There are still costs (notary and land registry fees), but there is no proportional tax of the property transfer tax type:

• Purchase price: 900 000 CHF
• property transfer tax: 0 CHF (no cantonal property transfer tax)
• Notary and land registry fees: typically in the range of 0.5 to 1.5 % of the price, depending on the services and the complexity of the file.

The difference is significant: for the same property at 900 000 CHF, you could pay almost 30 000 CHF in property transfer tax in the canton of Vaud, versus 0 CHF in Zurich (but with lower fixed and proportional fees).

Resources related to property transfer tax

• Tips for buying
• Become a homeowner
• Swiss property prices and costs