Costs of Buying Property in Montreux

Transfer tax (droits de mutation)

The transfer tax is the largest acquisition cost in the canton of Vaud. It is calculated as a percentage of the purchase price and is paid by the buyer at the time of signing the notarial deed. In Vaud, the transfer tax is composed of two elements: the cantonal tax (droit cantonal de mutation) of 1.5 percent and the communal tax (droit communal de mutation) which varies by municipality. In Montreux, the combined transfer tax is approximately 2.2 percent of the purchase price.

For a CHF 2 million property, the transfer tax amounts to approximately CHF 44,000. This is a significant cost that must be paid in cash at the time of signing — it cannot be financed with a mortgage.

Notary fees

The notary's fees are regulated by cantonal law and are calculated as a percentage of the purchase price. In Vaud, notary fees are typically in the range of 0.1 to 0.3 percent of the purchase price, depending on the complexity of the transaction. For a CHF 2 million property, notary fees are typically CHF 2,000 to CHF 6,000.

In addition to the notary's professional fees, there are disbursements — costs incurred by the notary on behalf of the parties, such as land register registration fees and certified copy fees. These disbursements are typically CHF 500 to CHF 2,000.

Agent commission

In Switzerland, the agent's commission is typically paid by the seller, not the buyer. However, buyers should be aware that in some transactions — particularly off-market transactions where the agent represents both parties — a buyer's commission may be charged. This should be clarified with the agent at the outset.

Where a buyer's agent is engaged specifically to represent the buyer's interests, a fee of 1 to 2 percent of the purchase price is typical. This fee is negotiable and should be agreed in writing before the agent begins working on the buyer's behalf.

Financing costs

If the purchase is financed with a mortgage, there are additional costs associated with arranging the financing. These include: the bank's arrangement fee (typically 0.1 to 0.5 percent of the mortgage amount); the cost of registering the mortgage in the land register (cédule hypothécaire — typically CHF 1,000 to CHF 3,000); and any mortgage broker fees if a broker is used.

Buyers should also budget for the cost of a property valuation (expertise immobilière) commissioned by the bank — typically CHF 1,500 to CHF 3,000 — which the bank requires before approving the mortgage.

Summary of acquisition costs

As a rule of thumb, buyers should budget for total acquisition costs of 4 to 6 percent of the purchase price in addition to the purchase price itself. For a CHF 2 million property, this means budgeting an additional CHF 80,000 to CHF 120,000 for acquisition costs. These costs must be paid in cash — they cannot be financed with a mortgage.

The main components are: transfer tax (~2.2%), notary fees (~0.2%), land register fees (~0.1%), mortgage registration (~0.1%), bank arrangement fee (~0.2%), and any agent or broker fees. The exact amounts depend on the purchase price, the financing structure and the specific transaction.

Key points

• Transfer tax (Vaud): ~2.2% of purchase price — largest acquisition cost
• Notary fees: 0.1–0.3% of purchase price plus disbursements
• Agent commission: typically paid by seller; buyer's agent fee 1–2% if applicable
• Mortgage costs: arrangement fee, land register registration, bank valuation
• Total acquisition costs: budget 4–6% above the purchase price, payable in cash