| Ramzi Chamat
The real estate transaction in Switzerland is a complex dance between two parties, the seller and the buyer, who must navigate through a maze of regulations, taxes and fees. Each step of this process requires careful attention to ensure a fair and equitable transaction. In this preamble, we will delve into the intricacies of this procedure, shedding light on the respective financial roles of the seller and the buyer. By exploring the intricacies of these financial obligations, we aim to provide an informed perspective for those embarking on the purchase or sale of real estate in Switzerland.
Selling a property in Switzerland is a complex process riddled with numerous financial considerations. One of the trickiest aspects to unravel is the allocation of expenses between the seller and the buyer. This crucial step requires a clear understanding of the financial responsibilities of each party involved. In this article, we will delve into the various fees encountered by both the seller and the buyer during a real estate transaction in Switzerland. By shedding light on these often intricate aspects, we aim to provide readers with a better understanding of the financial implications associated with buying or selling property in Switzerland.
Capital gains tax : This tax is calculated based on the difference between the selling and buying prices, with certain deductions possible. Its rate varies by canton and decreases with the duration of ownership of the property.
Brokerage commission : If a real estate agency is involved, the commission is borne by the seller, deductible from the sale's profit.
Energy Performance Certificate (CECB) : In some cantons, the seller must provide this document, and the associated costs are at their expense.
Potential bank penalty : Penalties may apply if a mortgage is repaid before its term.
Transfer taxes : These taxes collected at the time of purchase vary by canton and municipality.
Land Registry fees : Costs associated with the official registration of the sale and change of ownership.
Notary fees : Fees compensating the notary's work, regulated by cantonal laws.
Costs for establishing or modifying the mortgage lien : Fees related to the guarantee the bank reserves on the property in case of default.
Outlays, expenses, and fees : Various fees charged by the notary based on the transaction's complexity.
There may be a settlement between the buyer and the seller to distribute certain expenses such as property tax, fire insurance, etc., following a proportional rule based on a 360-day year.
In conclusion, every real estate transaction in Switzerland involves a series of expenses that must be carefully considered by the parties involved. A clear understanding of these financial responsibilities is essential to ensure a smooth and trouble-free transaction.
