Property Transfer Tax in Switzerland: A Complete Guide

When purchasing a property in Switzerland, one of the most significant transaction costs is the property estate transfer tax. This levy, imposed by cantons and in some cases municipalities, varies widely depending on where the property is located. Below, we’ll walk through how this tax works, which canton applies which rates, and where exemptions apply.

Cantonal overview: Tax rates and liability

Because Switzerland has a federalist system, each canton sets its own rules for property transfer taxes. The table below summarizes the situation:

Cantons without transfer tax proper: Zurich, Uri, Glarus, Zug, Schwyz, Schaffhausen.

What exactly is taxed?

The term “property” in Swiss law includes more than just land and buildings. It also covers:

• Co-ownership shares (e.g., condominiums)
• Rights recorded in the land register (e.g., building rights)
• Mines and other inseparable elements tied to land

Thus, any legal transfer of ownership in these forms may trigger the property transfer tax.

Tax, fee, or both?

Some cantons apply a tax proper (no direct service provided in exchange), others a fee (to cover the administrative cost of registration), while a few apply a mixed system. For instance, Zurich and Zug charge fees rather than a property transfer tax in the strict sense.

How the property transfer tax is calculated

In most cantons:

Property transfer tax = Purchase price × tax rate

If there is no purchase price (e.g., inheritance, gift) or if the declared price is lower than the market value, authorities often apply the market or official value instead.

When does the property transfer tax arise?

The property transfer tax is triggered whenever ownership changes – whether through purchase, gift, inheritance, or certain corporate or contractual changes (e.g., transfer of shares in a real estate company). Most cantons extend the tax to transactions with similar effects, such as converting co-ownership into sole ownership. Some of the aforementioned types of transactions are exempt in certain cantons. 

Who is responsible for payment?

• Buyer only: In most cantons (e.g., Bern, Basel-Stadt, Solothurn, Neuchâtel, Valais, Jura).
• Buyer with seller joint liability: In cantons such as Nidwalden, Thurgau, St. Gallen, and Vaud.
• Buyer and seller equally: For example in Basel-Land and Obwalden.
• Depending on agreement: In Aargau and Appenzell Ausserrhoden, the parties may decide, but joint liability applies.

Cantons without a transfer tax

The cantons of Zurich, Uri, Glarus, Schwyz, Zug, and Schaffhausen do not levy a property transfer tax. Instead, they impose fees for services such as notarisation or land register entry.

Other costs to consider when buying property

Beyond the property transfer tax, buyers and sellers should also account for:

• Property gains tax (seller’s responsibility, based on capital gain)
• Notary fees (authentication of the sales contract, often shared)
• Land registry fees (official ownership update)
• Mortgage deed charges (if financing with a mortgage)
• Possible prepayment penalties (if an existing mortgage is terminated early)

Final thoughts

Switzerland’s fragmented approach to property transfer taxes makes it crucial to check the cantonal rules applying to your transaction. Depending on the location, this cost can be negligible (in Zurich or Zug) or amount to several percent of the purchase price (as in Geneva or Neuchâtel).