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Buying Property in Switzerland: Costs, Mortgage, Lex Koller

Updated: 2026-08-02 · Reading time: 10 min · ImmoLens editorial team

Buying property in Switzerland follows its own rules: there is no nationwide transfer tax, but 26 cantonal models ranging from zero to about 3.3%. Banks require 20% equity and stress-test affordability with an imputed interest rate of 5%, no matter how cheap your actual mortgage is. And anyone without a Swiss passport or Swiss residence first has to pass the Lex Koller. This guide walks through closing costs, financing, law and process, as of August 2026.

Closing costs: the canton decides

The largest item is the property transfer tax (in some cantons structured as a levy or fee). The range is enormous: Schwyz is the only canton with neither a tax nor land registry fees, Zurich charges only fees of around 0.2%, while Neuchâtel at 3.3% and Geneva and Basel-Stadt at 3.0% sit at the top end. Vaud, Fribourg and Graubünden add municipal surcharges, and in Basel-Landschaft and Obwalden buyer and seller split the tax in half. Several cantons favour owner-occupiers: Bern exempts the first 800,000 CHF if you move in yourself, Basel-Stadt halves the rate, Neuchâtel and Geneva grant primary-residence relief.

Calculate your canton

The Schuldbrief: Switzerland's mortgage note

If you finance the purchase, you need a Schuldbrief (today usually a paperless register mortgage note), the Swiss counterpart of a mortgage deed. Setting one up costs roughly 0.1 to 0.35% of the pledged amount depending on the canton, 0.2% in Zurich. The note survives repayment and can be reused for the next purchase or a new mortgage. Always ask whether a note of suitable size already exists on the property, that saves the setup fee.

Financing: 20% equity and the affordability rule

Swiss banks follow the minimum requirements of the Swiss Bankers Association (SBVg, recognised by FINMA as a standard, current version in force since 1 January 2025). Two numbers are hard rules: at least 10% of the lending value must be hard equity, meaning not taken from your pension fund (2nd pillar). And the mortgage must be amortised linearly down to two thirds of the lending value within at most 15 years. On top of that, 20% total equity (80% loan-to-value) is market standard, though not regulation.

The second hurdle is affordability: the bank does not calculate with your actual mortgage rate but with an imputed rate of about 5%, plus roughly 1% of the property value for maintenance, plus amortisation. These imputed costs may usually amount to at most one third of gross income. An example: at a 1 million CHF price with an 800,000 CHF mortgage, the imputed numbers are about 40,000 CHF interest, 10,000 CHF maintenance and roughly 8,900 CHF amortisation per year, together just under 59,000 CHF. For that the bank wants a gross income of around 177,000 CHF per year, even if your real interest cost is far lower.

Lex Koller: who may buy at all

The federal law on the acquisition of real estate by persons abroad (BewG, known as the Lex Koller) restricts property purchases by people without Swiss residence. The short version: EU and EFTA citizens residing in Switzerland (B or C permit) buy residential property without any authorisation, just like Swiss citizens. Third-country nationals with a C settlement permit do too; with a B permit, buying a self-occupied primary residence is possible. Anyone living abroad, however, can acquire residential property only under narrow exceptions, such as quota-limited holiday apartments in tourist municipalities.

Important for planning: in April 2026 the Federal Council sent a tightening of the Lex Koller into consultation, mainly affecting third-country nationals without a C permit. It is not in force and the outcome is open. If you could be affected, follow the legislative process before making long-term plans.

Imputed rental value: abolished, but only from 2029

Switzerland has so far taxed owner-occupiers on a fictitious rental income, the Eigenmietwert, while allowing deductions for mortgage interest and maintenance. On 28 September 2025 voters approved its abolition with 57.7%. The Federal Council has set the entry into force for 1 January 2029. Until the end of 2028 the current system applies. From 2029 the imputed rental value disappears, and at the same time deductions for mortgage interest and maintenance are heavily restricted. Rule of thumb: the new law favours owners with little debt, high leverage loses its tax advantage. If you buy now, plan your amortisation strategy with 2029 in mind.

The process: notarisation and land registry

A property purchase in Switzerland is only valid with a public deed (Art. 216 of the Code of Obligations), and ownership passes only upon entry in the land register. Who draws up the deed is a cantonal matter: Zurich runs an official notariat with fixed fees, Bern or Vaud have independent notaries. One notable difference to Germany: simple reservation agreements are not binding, even paid reservations create no obligation to buy without notarisation. It only becomes binding at the notary.

Checklist for buying in Switzerland

• Clarify Lex Koller: do you need authorisation? With Swiss residence and a B/C permit usually not.
• Check equity: 20% of the price, at least half of it hard equity (not from the pension fund). Closing costs come on top.
• Run the affordability numbers: imputed costs (5% interest, 1% maintenance, amortisation) against one third of gross income.
• Cantonal closing costs: ask the canton about transfer tax and fees, use owner-occupier discounts.
• Schuldbrief: does one of suitable size already exist? Reuse saves the setup fee.
• Multiple mortgage offers: compare banks, insurers and pension funds.
• Pay nothing before notarisation that you cannot recover: reservations are legally weak.

Sources

• Swiss Tax Conference dossier on the transfer tax (cantonal rates, German)
• Swiss Bankers Association mortgage financing guidelines (self-regulation)
• Federal Office of Justice on the Lex Koller (BewG)
• Federal Department of Finance on the home ownership tax reform
• FDF release: reform enters into force on 1 January 2029

As of 2026-08-02. All figures are orientation values and no substitute for legal or tax advice. The cantonal rates come from the Swiss Tax Conference dossier (legislation status 2022 with supplements); confirm the current rate with the cantonal tax administration before notarisation.