Total Cost of Buying a CHF 5 Million Property in Montreux

The property

This example assumes the purchase of a CHF 5,000,000 villa or luxury apartment in Montreux by a Swiss resident (C permit holder) for use as a primary residence, financed with a mortgage of 65 percent of the purchase price (CHF 3,250,000). At this price level, many buyers choose a lower LTV — 65 percent is used here as a conservative example. The buyer contributes 35 percent equity (CHF 1,750,000) from their own funds.

Transaction costs

Transfer tax (2.2% of CHF 5,000,000): CHF 110,000. Notary fees (approximately 0.15%): CHF 7,500. Land register fees (approximately 0.08%): CHF 4,000. Mortgage registration fee: CHF 2,500. Bank arrangement fee (0.15% of CHF 3,250,000): CHF 4,875. Bank property valuation: CHF 3,500. Total transaction costs: approximately CHF 132,375.

Total cash required at completion

Equity contribution: CHF 1,750,000. Transaction costs: CHF 132,375. Total cash required: CHF 1,882,375 — approximately 37.6 percent of the purchase price.

The mortgage of CHF 3,250,000 covers the remaining CHF 3,250,000 of the purchase price. Transaction costs must be paid in cash.

Annual ownership costs

Annual mortgage interest (CHF 3,250,000 at 2%): CHF 65,000. Annual amortisation (not required at 65% LTV — first tranche only): CHF 0. PPE service charges or villa maintenance (estimated): CHF 20,000. Property taxes (estimated): CHF 20,000. Maintenance reserve (0.5% of property value): CHF 25,000. Total estimated annual ownership costs: approximately CHF 130,000 per year, or approximately CHF 10,800 per month.

These figures are indicative. At this price level, buyers typically work with a private bank and a tax adviser to optimise the financing and tax structure.

Key points

• Purchase price: CHF 5,000,000
• Transaction costs: ~CHF 132,375 (2.65% of purchase price)
• Total cash required: ~CHF 1,882,375 (35% equity + transaction costs)
• Mortgage: CHF 3,250,000 at 65% LTV
• Annual ownership costs: ~CHF 130,000/year