Property transfer tax: information and costs
Property transfer tax is normally payable when a property changes owners. Different rules apply depending on the canton. Comparis explains.
20.06.2022
iStock/SAWEK KAWILA
1. What is property transfer tax?
In Switzerland, most cantons and communes levy a property transfer tax when ownership of a property is transferred. It is due when the change is reported to the land registry. The precise rules relating to change of ownership are the responsibility of the cantons or communes.
In some cantons, the property transfer tax has the character of a mixed tax. Unlike an ordinary administrative fee, the mixed tax is a charge that is higher than is necessary to cover the cost of the administrative activity. The fact that it differs from the actual administrative costs is what makes this charge a tax from a legal perspective.
2. Who has to pay the property transfer tax?
As a rule, the buyer pays the property transfer tax. Some cantons have different arrangements, however. In Basel-Landschaft and Obwalden, for instance, the buyer and seller each pays half.
3. How is the property transfer tax calculated?
The property transfer tax is generally based on the sale price of the property. If there is no actual price or it is less than the market value, the tax authority can use the market value or the official value as the basis. The tax is levied on this value.
Property transfer tax if a loss is made
The property transfer tax applies to the transfer of ownership. Unlike the property gains tax, the property transfer tax must be paid regardless of whether the sale was profitable.
Property transfer tax: an example
In the canton of Lucerne, property transfers are taxed at 1.5%. If you purchase a property for 1 million francs, you will therefore owe 15,000 francs in property transfer tax.
You can use the following formula to work out how much property transfer tax you will have to pay:
Purchase price × tax rate = property transfer tax
For the example above, the property transfer tax can be calculated as follows:
CHF 1,000,000 × 0.015 = CHF 15,000
4. How high is the property transfer tax in the different cantons?
There are considerable differences between the rates charged by the cantons. The Cantons of Aargau, Glarus, Schaffhausen, Ticino, Uri, Zug and Zurich do not levy a property transfer tax, but charge a fee instead. In these cantons, the fee is between 0.1–1.3%. In the canton of Schwyz, no fee or tax is charged on a change of ownership.
The following table provides an overview of the rates charged by the cantons for property transfer tax (the websites are only available in the language(s) of the canton):
| Canton | Property transfer tax rate | Additional info | Who pays? |
|---|---|---|---|
| Aargau | – | – | – |
| Appenzell Ausserrhoden | Max. 2.0% | Communes may charge lower rates | By contractual agreement |
| Appenzell Innerrhoden | 1.0% | – | Buyer |
| Basel-Landschaft | 2.5% | – | Buyer and seller each pays half |
| Basel-Stadt | 3.0% | – | Usually the buyer |
| Bern | 1.8% | No charge if less than CHF 100 | Usually the buyer |
| Fribourg | 1.5% | Communes may impose additional levies | Buyer |
| Geneva | 3.0% | – | Buyer |
| Glarus | – | – | – |
| Graubünden | Max. 2.0% | Tax rate set by communes | Buyer, different contractual agreements possible |
| Jura | 2.1% | Min. CHF 30 | Buyer |
| Lucerne | 1.5% | – | Buyer |
| Neuchâtel | 3.3% | – | Buyer |
| Nidwalden | 1.0% | – | Buyer |
| Obwalden | 1.5% | – | Buyer and seller each pays half |
| Schaffhausen | – | – | – |
| Schwyz | – | – | – |
| Solothurn | 2.2% | – | Buyer |
| St. Gallen | 1% | – | Buyer |
| Ticino | – | – | – |
| Thurgau | 1.0% | – | Buyer |
| Uri | – | – | – |
| Vaud | 2.2% | Max. 1.1% surcharge imposed by commune | Buyer |
| Valais | 1.0–1.5% | Depends on the property’s value | Buyer |
| Zug | – | – | – |
| Zürich | – | – | – |
5. Do any exemptions apply to the property transfer tax?
Depending on the canton, some changes of ownership are tax-exempt or subject to a reduced rate. You can check the cantonal tax laws to find out what applies in your canton.
If, for example, you buy a home in the canton of Bern and use it as your main residence, the first 800,000 francs may be exempt from the property transfer tax. Other examples of possible exemptions from tax liability:
Switch from joint ownership to co-ownership
Replacement purchases (purchase of another property as a place of residence)
Inheritances and gifts in the line of inheritance
Change of ownership between spouses or children
Change of ownership due to division of matrimonial property
Do you know how much your property is worth?
Before the sales process, have the value of your property estimated. The Comparis online property valuation tool gives you an initial indication of a fair market price.
