Real estate transfer tax — Everything you need to know
What is the real estate transfer tax? - The definition
Die Real estate transfer tax Is a tax that is paid in Switzerland at a Acquisition of land is collected. This tax is due when ownership of a plot of land, real estate or certain rights to land is transferred. The regulations for this vary from canton to canton. In some cantons, this tax is covered by a Handalteration fee replaced, and there are cantons that do without it altogether. It is therefore important for prospective buyers and sellers to know the respective cantonal regulations in order to be able to estimate the additional costs of a real estate transaction.
How is the property transfer tax calculated and who pays it?
Die Real estate transfer tax Is a tax that is paid in Switzerland at a Acquisition of land is collected. This tax is due when ownership of a plot of land, real estate or certain rights to land is transferred. The regulations for this vary from canton to canton. In some cantons, this tax is covered by a Handalteration fee replaced, and there are cantons that do without it altogether. It is therefore important for prospective buyers and sellers to know the respective cantonal regulations in order to be able to estimate the additional costs of a real estate transaction.
Property transfer tax per canton at a glance_241111
example: A single-family house in St. Gallen is being sold for CHF 1,000,000. The property transfer tax amounts to 1.0% of the purchase price, i.e. CHF 10,000. In St. Gallen, the property transfer tax is normally borne by buyers.
Whether the buyer or seller bears the tax burden is also regulated by the canton. In most cantons, the buyer pays the tax in full, while in some cantons both parties pay on a pro rata basis or by individual agreement. It is also possible that the seller is jointly liable should the buyer not make the payment.
Exemptions from property transfer tax
In certain cases, there may be an exemption from property transfer tax. Typical exceptions include:
- Federal government, regional churches and charitable institutions: The Swiss Confederation and state institutions are generally exempt.
- Family transfers: Property transfers within the family, such as inheritances and gifts, are often completely or partially tax-exempt.
- Foreclosures and changes of ownership through barter: In some cases, such transactions are also exempt from tax.
important: Cantonal regulations may differ, so it is recommended to ask the cantonal tax administration for details.
Combination with other taxes
When changing ownership, there may be other duties in addition to the property transfer tax:
- Real estate gains tax: This tax relates to the profit earned when selling a plot of land and is charged in addition to property transfer tax.
- Inheritance and gift tax: Gifts and inheritances may result in double taxation in some cantons. However, cantonal regulations often offer reductions or exceptions to mitigate such cases.
Real estate transfer tax and property transfer fee: differences
While the real estate transfer tax is a general tax on the change of owner represents a property, is the Handalteration fee a fee for administrative expenses during transmission. The amount of the fee is determined not on the basis of the value of the land, but on the administrative costs. Cantons that do not charge a property transfer tax can instead charge such a fee, which usually results in lower costs.
Who collects the property transfer tax?
In most cases, real estate transfer tax is levied by the cantons, although some municipalities are also authorized to levy their own tax surcharges. Depending on the canton, this can be a additional percentage of cantonal property transfer tax include or a participation of municipalities in the income generated by the tax.
The exact regulations and costs should always be submitted to the responsible person Cantonal tax office or the municipal government retrieved to avoid unexpected expenses when buying a property. A thorough understanding of Real estate transfer tax and possible exceptions helps buyers and sellers to realistically assess the financial burden of a property transfer and to be prepared for all contingencies.
.png)