With the exception of Zurich and Schwytz, all Swiss cantons levy a property transfer tax based on the purchase price or the property’s taxable value. In most cantons, the buyer is responsible for this tax, while in some, it may be shared between both parties depending on the terms of the purchase agreement. The transfer tax rate varies by canton and typically ranges from around 0.5% to 3% of the purchase price. Most cantons also charge a land registry fee, generally amounting to a few tenths of a percent, and up to 1% in certain exceptional cases. In some cantons, notary fees are billed by the hour, while in others, they are calculated as a percentage, usually a few tenths of a percent, of the purchase price. Traditionally, all real estate agency fees are paid by the seller, unless otherwise agreed in advance or if the buyer signs a search mandate requesting a tailored property search service.

In general, holding a B permit grants the holder the status of tax resident in Switzerland, in accordance with Swiss law. Under Swiss tax law, worldwide income and assets are taxable in Switzerland and must be declared. Taxes are levied at the federal, cantonal, and municipal levels. The tax rate is progressive and varies from one municipality to another. The lowest maximum tax rate is approximately 20%, while the highest is around 42%. In addition to international income, an estimated rental value of Swiss real estate assets is taxable as income in Switzerland. However, maintenance costs and mortgage interest are fully deductible from taxable income. International movable and immovable assets located in Switzerland are subject to cantonal or municipal wealth tax. Wealth tax is levied on net assets, meaning that mortgage loans and other debts are deducted from the taxable value of the assets. Net assets are taxed at a progressive rate, with a maximum ranging from approximately 0.1% to 1%, depending on the applicable cantonal or municipal tax rate.

Foreign nationals who do not carry out any gainful activity in Switzerland may benefit, in many cantons, from a lump-sum taxation system based on the rental value of their Swiss property (generally calculated by multiplying the annual rental value by seven) and the cost of living. This system does not take the individual’s global income into account. Additionally, tax authorities require a minimum tax charge of at least CHF 400,000 in order to grant lump-sum taxation in cases where the property has a relatively low taxable value.