Costs of buying a house

The property price is arguably the largest cost factor when it comes to purchasing a home. Nevertheless, aside from the pure purchase price, various other expenses occur that should not be overlooked. In this blog article, we give you an overview of the cost items that you should include in your budget in addition to the purchase price.


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One-time costs

Transfer taxes

When the owner of a property changes, this tax is levied in some cantons and depending on the amount of the purchase price. Check with a notary in your future canton of residence to find out whether this is applicable and if so, how much.

Notary and land registry fees

In order to make your purchase contract legally valid, you need the confirmation of a notary (public notarization), who will register you as the new owner in the land register. Depending on the canton, the official recorder's office takes over the tasks for the land register entry.
If you wish to take out a mortgage for your property, the mortgage lender will require a borrower's note at least in the amount of the desired mortgage. The execution of the borrower's note is also carried out by the notary and entered in the land register.

Notary and land registry fees can vary depending on the canton, the amount of the purchase price and the total amount of the borrower's notes required.

Capital payment tax

If you make an advance withdrawal from your pension fund or Pillar 3a for the purchase of real estate, taxes will be levied on this. We will be happy to calculate the likely taxes for you. In addition, your pension fund may charge a processing fee for capital withdrawals.

Broker's commission

If your desired property is sold through a broker, the broker will receive a commission if the sale is successful. It is best to ask him directly whether you as the buyer should expect any costs.

Real estate gains tax

The real estate gains tax varies from municipality to municipality and depends, on the one hand, on how long a property was owned by the owner and, on the other hand, on the amount of the profit made. The tax must be paid by the person who sells the property - thus the seller. However, you as the buyer cannot completely ignore this tax: If the seller does not pay this tax, you as the new owner will be asked to pay. Therefore, you should expressly stipulate in the purchase contract that the real estate gains tax is to be secured.

Recurring costs

Unfortunately, the one-time costs associated with buying a house are not the end of it, and you should carefully consider what monthly expenses will long-term come your way with the acquisition of a home. Although rent is no longer an issue, mortgage interest, amortization, insurances, the (long-disputed) imputed rental value, as well as maintenance and utility costs will knock on your door. More on the topic of how much you should budget monthly for your house can be found in our article 'What does a house cost per month?'

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