Costs and tax
It is important to know all the costs involved with your property before you enter into such a commitment. In this section we outline the costs to own your property.
Financing
alpineswitzerland has formed contacts with many banks across Switzerland which we feel offer the best mortgage deals, with low interest rates(on average lower than the UK) and with deposits as low as 25% of the purchase price. We can introduce you to the best bank to fit your needs in that particular area of Switzerland. See our finance section.
Purchase costs
A Swiss public notary will act for both the purchaser and the vendor. The purchase fees vary from one canton to another but all include:
- notary fees
- land registry fees
- Government purchase taxes
In canton Valais (Verbier) and most of Switzerland the total purchase costs amount to around 2.4-2.8% of the purchase price, or lower if the property value is several million or more. In canton Vaud (Villars) the total purchase costs are 4-5% of the purchase price. The property must be purchased in the name of a private individual. It is not permitted to buy property in the name of a limited company unless the major share holder is a Swiss resident. If you are purchasing land you pay tax on the land cost only.
Annual costs
The annual costs for a co-owned property such as an apartment in a chalet block are as follows and normally amount to approximately 0.6% to 1.2% of the property purchase price, depending on the property and what it offers, such as a pool or sauna, lift etc.These costs are divided up proportionally between the owners, according to the size of the apartment. The costs for a chalet are much less, as you do not have to pay the maintenance to a fund but you should be sure to keep some funds by for an old property.
- Building administrator or caretaker.
- Building insurance and taxes
- Caring for the gardens and maintenance of paths and roads
- Administration fees and expenses
- Water / electricity and or gas / and heating
- The renovation fund for the building, and building maintenance
The manager (of the co-property) collects the relevant amounts covering the total expenses incurred by the building.These are payable quarterly or half-yearly.
Annual Taxes
Taxes are divided up between the authorities in Switzerland. For your annual taxation on your property the rough figure is between 0.8-1.3% of the purchase price. You are only liable to the Swiss government for tax on the property in Switzerland. All cantons have different laws and possibilities so when you have found the property you desire you can then enquire about the tax rules in that area. This information only serves as a guide
See also our Taxation page.
The Swiss taxes are divided and paid to:
- The Swiss Government
- The Canton
- The Commune
However, if you decide to take a mortgage you can offset the mortgage interest against the rental income thereby minimizing the tax. There may also be a possibility to off set other costs but this is very dependent on the location and your situation. A qualified Swiss tax person will be able to assist you in detail.
Capital gains
The tax to be paid varies from canton to canton but in the Valias and Vaud it starts in the first year at 30% of the net profit, then 18% after 5 years and 15% after 10 years down to 7% after 24years.
It is possible to off set costs such as renovation works on your property from the capital gain so it is very important to keep all the receipts you have relative to your property as they may save you money in the future!