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Change of ownership (property transfer)

A change of ownership (Handänderung) is the legal transfer of ownership of a property from one person to another – typically when buying or selling real estate. It only becomes legally valid with the entry in the land register, not already with the signing of the purchase contract.

The core of every property transfer is the purchase contract, which in Switzerland must be publicly notarised (Art. 216 CO). This means buyer and seller sign in front of an authorised officer – depending on the canton at the notary's office or land registry. Only afterwards does the officer register the transfer with the land register; ownership officially passes with the entry. Until then the selling party remains the owner.

The process involves several steps: drafting and notarising the contract, arranging financing and the mortgage, securing payment of the price (often via a notary account or a payment guarantee), handing over the property with a protocol, and finally the land register entry. Secondary points matter too, such as taking over or redeeming existing mortgages, easements, and splitting running costs as of the cut-off date.

Several cost items arise. Many cantons levy a property transfer tax on the purchase price – rates range roughly from around 1 % to over 3 %, while individual cantons such as Zurich have no such tax (no guarantee). On top come notary and land register fees, which depending on canton and price often total in the range of about 0.1 to 1 % of the purchase price (no guarantee). Who bears the tax is partly set by law and partly negotiable – often buyer and seller share the costs or the buyer takes them on.

The transfer is relevant for anyone buying, selling, gifting or inheriting a property. With gifts and inheritance too, ownership changes and must be updated in the land register, although many cantons apply reduced or no transfer taxes here. Before notarisation it is always worth reviewing the land register extract for mortgages, easements and annotations – when in doubt, a real estate or legal professional can help.

Example

Mr Koch sells his terraced house for CHF 950,000. After notarisation the amount is settled via the notary account, the old mortgage is redeemed and the buyer is entered in the land register as the new owner. In his canton a transfer tax of around 1.5 % applies, which the parties split equally as agreed in the contract.

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Frequently asked

How much does a property transfer cost in Switzerland?

Depending on the canton there is a transfer tax (roughly 1 to over 3 % of the price, none in some cantons) plus notary and land register fees totalling often about 0.1 to 1 %. On a price of CHF 800,000 this quickly amounts to several thousand up to over twenty thousand francs – highly canton-dependent (no guarantee).

When does ownership pass in a property transfer?

Not with the signature, but only with the entry in the land register. The notarised purchase contract is the basis, but you legally become the owner only when the land registry records the transfer.

Who pays the transfer tax, buyer or seller?

This is partly set by cantonal law and partly negotiable, and is fixed in the purchase contract. Often the buyer bears it or the parties split it equally. Clarify this before notarisation so there are no surprises.

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