Notary fees: what to expect when buying a property

What are notary fees?

Notaire's fees are the fees that you, the buyer, must pay for drawing up and certifying the deed of sale, transfer duties (tax on property transactions) and the costs of setting up the mortgage guarantee.

How are notary fees calculated?

These fees are generally calculated based on the purchase price of the property and the amount of the guarantee to be issued. In Switzerland, notary fees vary depending on the canton you buy the property. As a rule, notary fees represent 5% of the purchase price.

What do notary fees cover?

Notary fees cover the costs associated with drawing up and certifying the deed of sale. These costs may include:

· Drawing up the deed of sale

The notary must draw up the deed of sale, an important legal document that describes the terms and conditions of the sale.

· Verification of ownership

The notary must check that the property belongs to the vendor and that no legal or tax problems are associated with the property.

· Deed of sale certification

The notary must certify the sale deed by affixing his seal and signature. This certification is necessary because it attests to the authenticity of the deed of sale.

· Setting up a mortgage guarantee

The financial institution requires a mortgage guarantee of at least the amount of the mortgage loan granted.

· Transfer taxes

Transfer duties are a property tax designed to transfer property ownership from one person to another.

How do I choose a notary in Switzerland?

In Switzerland, you can choose your own notary to handle the sale. However, selecting a qualified and experienced notaire is important to ensure the sale goes smoothly and under the best possible conditions. Ask your estate agent, friends, and family for recommendations or speak to one of our wealth advisers.

How can you minimise notary fees?

It is impossible to minimise notary fees, but there are ways to reduce them. For example, you can negotiate with the seller to give you the existing mortgage guarantee (mortgage certificate) free of charge or at a lower cost. You can also choose a notary who offers lower fees or ask for quotes from several notaries to compare prices.

Notary fees: clarifying the concept

When purchasing a property, the term “notary fees” is often used to refer to all costs associated with the transaction.

In reality, this expression covers several distinct elements:

• taxes,
• administrative costs,
• and notary fees in the strict sense.

It is therefore more accurate to refer to them as overall purchase or transaction costs.

The main cost components

Property purchase costs in Switzerland generally consist of three main elements.

Transfer taxes

Transfer taxes are a levy charged when property ownership is transferred.

• they are set at cantonal (and sometimes municipal) level,
• their amount depends on the location of the property.

They usually represent the largest part of acquisition costs.

Notary fees

The notary is responsible for:

• drafting and notarising the purchase agreement,
• verifying legal aspects,
• ensuring the security of the transaction.

Notary fees are generally:

• regulated at cantonal level,
• calculated based on the property value and the complexity of the transaction.

Land registry fees

To make the transaction legally valid, the transfer of ownership must be recorded in the land register.

This registration involves administrative fees, typically calculated as a percentage of the property value.

Costs vary by canton

In Switzerland, acquisition costs vary significantly depending on the canton.

• some cantons do not levy transfer taxes,
• others apply relatively high rates.

Overall, these costs may represent:

• less than 1% of the purchase price in some cases,
• up to 3% to 5% in others.

Who pays these costs?

In most cases:

• the buyer bears the majority of the costs,
• although cost sharing may sometimes be negotiated between the parties.

It is therefore important to clarify cost allocation early in the process.

Costs to include in your financing plan

Notary fees must be anticipated as part of your overall budget.

In Switzerland:

• they generally need to be covered by your own funds,
• they are not usually financed through a mortgage.

This means they are in addition to:

• your equity contribution,
• and other purchase-related costs.

Why planning ahead matters

Underestimating these costs may lead to:

• an insufficient budget,
• last-minute financial adjustments,
• or even jeopardising the project.

Factoring them in early helps:

• define a realistic budget,
• secure your financing,
• avoid unexpected surprises.

Part of the overall cost of your project

Acquisition costs should be considered alongside:

• the purchase price,
• financing structure,
• mortgage costs,
• and property taxation.

It is the combination of these elements that determines the true cost of your property project.