Real Estate Transactions: Fees, Additional Costs, and Practical Tips for Buyers and Sellers

Buying or selling residential property is one of the most significant financial decisions in life. In addition to the actual purchase or sale price, a variety of additional costs must be taken into account. In this article, we provide a detailed overview of the various fees and ancillary costs associated with real estate transactions, along with practical tips for effective planning.

Published on: April 08, 2025 | Reading time: approx. 5-10 minutes

Land Register Entry Fees

Registering a new ownership position in the land register is an essential step in real estate transactions. The associated costs – land register fees – are often charged as a flat rate, but the amount can vary depending on the canton.

• Practical example: In cantons like Zurich, these fees are often around 0.1% of the purchase price, while in Bern, values of up to 0.5% are common.
• Tip: Estimate around 0.5% of the purchase price in advance to get a rough idea of the cost.

Costs of Transfer of Ownership (Transfer Tax)

The property transfer tax is another significant cost factor when purchasing real estate. Interestingly, this tax is not levied in some cantons – for example, Zurich – while in others, it can represent a considerable amount.

• Basis of calculation: The tax rate is usually based on the sales price.
• Example: In the canton of Bern, a percentage is charged on the portion of the sale price that exceeds certain thresholds – on average, expect about 1.5% of the purchase price, keeping in mind regional differences.

Notary Fees

Notaries play a key role in certifying purchase agreements and registering ownership rights.

• Fee variation: Notary fees can vary significantly – depending on the canton and whether it is an official or private notary.
• Regional examples: Cantons like Geneva or Vaud tend to have higher rates, while fees in Schwyz or Glarus are generally lower.
• Recommendation: If you’re buying in a region with private notaries, it’s worth obtaining several offers to ensure the best value. Estimate around 0.1% to 0.5% of the purchase price in advance for rough planning.

Cost of Issuing a New Mortgage Note

For many buyers, it is necessary to request a new mortgage note – especially if the existing one cannot be reused.

• Cost range: This fee generally ranges between 0.1% and 0.3% of the pledged amount.
• Practical tip: If a mortgage note already exists, check whether it can be transferred. This could significantly reduce your costs.

Capital Gains Tax: Calculation and Special Features

For sellers, capital gains tax is often one of the biggest uncertainties. It is calculated based on the profit – the difference between the sale price and the original investment costs.

• Influencing factors: Besides profit, ownership duration and the property’s location play a role.
• Calculation models: Some cantons use a flat tax rate (around 30%), while others apply a progressive model where higher gains are taxed more heavily.
• Long-term perspective: Many cantons offer tax reductions for longer ownership durations, which can significantly reduce the tax amount when selling later.

Tax Treatment of Transaction Costs

A frequently asked question is whether the associated fees and ancillary costs are tax-deductible.

• Current situation: Typically, ancillary purchase costs such as land register fees, notary fees, and property transfer taxes are not deductible from taxable income. You can find more information on this topic here.
• Exception: Homeowners can deduct maintenance and administration costs as well as value-preserving investments.

Strategies for Forward-Looking Budget Planning

Thorough planning is key to avoiding financial surprises. Here are a few tips:

• Early cost estimation: Create a comprehensive overview of all potential ancillary costs for both purchase and sale.
• Plan a financial buffer: Due to significant variations in costs, we recommend setting aside up to 5% of the purchase price as a buffer.
• Contractual agreements: Clarify in advance how the various fees will be split between buyer and seller – ideally, these arrangements should be recorded in the purchase agreement.
• Expert advice: Make use of the expertise of notaries, real estate agents, and financial advisors for accurate calculations. They can also inform you about regional specifics that may affect your financing framework.

Conclusion

Real estate transactions are complex and involve much more than just the purchase or sale price. Careful planning of fees and additional costs is essential to avoid financial shortfalls and successfully manage the entire process. Our expertise in the mortgage market – as demonstrated by our work at HYPOHAUS – can be a key factor for your success. If you have questions or need support in planning and executing your property transaction, feel free to get in touch with us. You can find our services here – we’re happy to provide personal and professional advice.