The transaction costs include in particular:
- Registration fees
- Property transfer costs
- Guarantee of the organisation of entitlements
- Guarantee of payment in return for due conclusion of the transaction (e.g. upon settlement with bank cheque or engagement of the services of an escrow agent)
- Agent to monitor procedures in cases of complex properties
- Charges
- Land taxes
The cost components are set out in the following list:
| Transaction Costs | ||
|---|---|---|
|
Type of costs |
Basis of Calculation |
Quantitative |
Real estate transfer |
|
|
|
Broker’s fee |
Purchase price (possibly compensation for granting a right to purchase) |
2% – 6% |
|
Property valuer’s fee |
Complexity of the property |
CHF 150/h to CHF 250/h |
|
Registration fees (notary’s fees) |
Purchase price |
0,66% – 5,7% |
|
Property transfer fees (land register fees) |
Purchase price |
1% – 3% |
|
Property transfer tax (usually ½ payable by the vendor / ½ by the buyer) |
Purchase price |
1% – 3% |
|
Capital gains tax on property (without another informal agreement to the detriment of the vendor) |
Capital gain |
10% – 66%, depending on the location for tax purposes and length of ownership |
Creation of rights |
|
|
|
Creation of condominium ownership |
Adviser’s fee |
Approx. CHF 4,000, depending on the number of condominium units and the number of infrastructure investments |
Operation / management |
|
|
|
Administration agreement |
Annual net rental income |
3% – 7% |
|
Letting agreement |
Annual net rental income |
3% – 7% |
|
Administration of condominium |
Buildings insurance value p.a. |
Depends on the number of condominium units 1,3%o to 2%o, usually with additional fees |
|
Property tax |
Tax base or market value |
approx. 2% |
