Solicitors' fees
Contrary to what the name suggests, solicitors' fees cover more than just the remuneration of the solicitor (their fee), which is fixed by the State Council. This fee also covers state taxes and Land Registry fees.
The rate of tax on solicitor fees is regressive. This means that the greater the price of the real estate asset, the lower the average rate. With regard to the sales deeds, the solicitors' fees are equivalent to 0.14% on a property worth 20 million CHF, and 0.7% for a property worth less than CHF 200,000. In the case of a mortgage deed, this amount varies according to the mortgage schedule. For a mortgage of more than CHF 5 million, fees are below 0.25%, while they are 0.5% for a mortgage of less than CHF 200,000. Solicitors may also charge additional fees in certain cases, such as when a power of attorney is required.
The purchase deed
The costs for the purchase deed normally amount to around 4% of the price of the real estate asset (excl. VAT). They are distributed as follows:
- 3% is levied as a registration fee (also known as a transfer tax).
- 0.3% is levied for registration in the Land Registry.
- 0.7% is collected by the solicitor for his/her remuneration and administration fees.
The mortgage deed
The cost of establishing a mortgage deed is approximately 2.5% of the whole amount. It is distributed as follows:
- 1.365% is levied for registration fees, and this amount is paid directly to the State.
- 0.2% is levied for registration in the Land Registry.
- <1% is collected by the solicitor for their remuneration, fees and expenses. This amount is regressive.
The role of the solicitor
The solicitor personally assures that the real estate transaction is concluded in accordance with the law. The solicitor must therefore ensure that nothing prevents the transfer of ownership and that both parties, namely the seller and the buyer, are in good standing in the eyes of the law.
Summary
The costs of acquiring real estate are more than just trivial expenses, so it is important to understand how they work. If you have any queries, please feel free to contact our team of experts for further advice on any particular issues.
