Taxes and additional costs when buying property in Zurich

The canton of Zurich abolished property transfer tax on 1 January 2005. Unlike several other cantons, it therefore does not charge a percentage transfer tax on the purchase price. The relevant tax and fee budget instead centres on real-estate capital gains tax, notarial and land-register fees, and mortgage-related costs. These must still be reflected in the financing plan before signing.

Real-estate capital gains tax under sections 216 et seq. of Zurich’s Tax Act is levied by municipalities on the gain from disposal. The seller is primarily liable. Buyers must nevertheless consider the tax because it affects negotiations, may be secured by a statutory lien on the property and is often addressed through contractual security arrangements. A deferral may be available for replacement of owner-occupied housing under strict conditions, to be clarified with the municipal tax authority before notarisation.

Notarial fees follow the cantonal fee ordinance and generally depend on the authenticated transaction value. In addition to the authentication fee, disbursements, certifications and translations may be charged. A reliable estimate requires the actual purchase price and specific structure of the transaction, rather than a general percentage taken from another canton.

Land-register fees cover registration of the ownership transfer, creation or transfer of mortgage certificates and other entries. They also follow a value-based tariff. Mortgage financing can involve either a newly created certificate or transfer of an existing paper or register mortgage certificate. Both may generate notarial, registration and bank costs. Discuss the cost implications of reusing an existing certificate with the financing bank.

Allocation of costs is contractual. In Zurich practice, notarial and registration fees for the purchase and ownership transfer are often shared equally. Costs of creating or transferring mortgage certificates are generally borne by the buyer whose financing they secure. Capital gains tax remains economically on the seller’s side, but security clauses protect against the property’s exposure. Any departure from the usual allocation should be stated expressly.

At handover, recurring expenses and consumable stocks also need settlement. These may include applicable property-related charges, building and supplementary insurance premiums, caretaker and maintenance contracts, and stocks of heating oil, pellets or gas. Record readings, inventory quantities, the cut-off date and the calculation method in the handover statement. Individually modest items can total several thousand francs.

Before notarisation, request a written cost breakdown covering notarial fees, land-register fees, mortgage certificates, any assumed or secured capital gains tax amounts and estimated apportionments. Tariffs, financing arrangements and contractual details can change the result. Specialists in Zurich property and tax law can review the breakdown against the transaction.