What is the property transfer tax?

In Switzerland, a cantonally regulated property transfer tax is incurred during the acquisition of real estate, covering administrative costs.

2016

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In Switzerland, a fee known as the real estate transfer tax is due on the occasion of a property acquisition. The fee is regulated by cantons and is intended to cover the costs of administrative expenses.

Both the transfer of ownership of a property and the transfer of economic control are considered taxable real estate transfers and are thus subject to the real estate transfer tax. The fee is regulated by cantons and serves to cover the costs of administrative expenses. In the Canton of Bern, there is an exemption limit of CHF 800,000, while in Solothurn no tax is owed if the property is used for the owner's personal use. The cantons of Zurich and Schwyz have even abolished the real estate transfer tax altogether. The collection of the fee is generally the responsibility of the cantons, which can delegate these tasks to the municipalities. The cantons of Fribourg and Vaud even allow their municipalities to levy an additional tax surcharge that can amount to up to 100% of the cantonal tax. The rates and the entity responsible for the fee vary from canton to canton. In most cases, however, the fee is levied on the buyer.

The real estate transfer tax should not be confused with the real estate capital gains tax, which is due on the increase in value of a sold property and is usually borne by the seller.

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