What does it cost to sell a house in the canton of Zug?

Which costs arise when selling a house in the canton of Zug?

Four items are set by law when you sell a property in the canton of Zug: the land registry fee, the notarisation fee, the property gains tax and the official documents. Two further items are contractual: the agent's fee and, if a fixed-rate mortgage is still running, the early repayment penalty. The largest item is usually the property gains tax; the cantonal fees stay small because Zug charges them by time spent rather than as a percentage of the purchase price.

How high is the land registry fee, and who pays it?

In the canton of Zug the land registry fee is based on the time spent by the Office for Land Registry and Geoinformation, not on the purchase price: the hourly rate is CHF 180, charged for every quarter of an hour begun (§ 13 para. 2 of the Land Registry Fee Tariff, BGS 215.35). On a transfer of ownership the fee is multiplied by a factor of 4 because of the significance of the transaction, up to a ceiling of CHF 6,000; above that the factor no longer applies, but the time spent is still charged (§ 14 para. 1 let. a and para. 3).

On a change of ownership the seller and the buyer owe the fee in equal shares, unless the law or the contract provides otherwise; both are jointly and severally liable (§ 4 para. 1 let. a and para. 2). A different split is permitted, but it belongs expressly in the purchase contract.

Worked example with round figures: if the office needs two hours for advice, checking and execution, that comes to CHF 360, with factor 4 therefore CHF 1,440 – CHF 720 each for seller and buyer.

What does notarisation of the purchase contract cost?

Notarisation (public deed) of the purchase contract costs between CHF 300 and 4,000 in the canton of Zug (Cantonal Council Resolution on Fees in Administrative and Civil Matters, BGS 641.1, § 9 no. 89). Without it, a contract for the sale of land is not valid (Art. 216 para. 1 of the Code of Obligations (OR)). The purchase contract is notarised by the municipal clerk's office of the municipality in which the property lies (§ 4 para. 2 of the Notarisation Act, BGS 223.1); lawyers authorised to notarise may not notarise contracts for the sale of land (§ 7 para. 2). Where the fee falls within the range depends on the work involved. If negotiations, legal advice and drafting take more than one hour, a surcharge of 10 to 50% may be charged (no. 92).

Both parties are jointly and severally liable to the notary for the fee (BGS 641.1 § 13 no. 107ter); how they divide it between themselves is governed by the purchase contract. Settle this point before signing, together with the split of the land registry fee.

How much property gains tax do you pay?

Between 10 and 60% of the gain: the tax rate equals the return converted to one year – the gain in relation to the investment costs, spread over the holding period – with a minimum of 10% and a maximum of 60% (§ 199 paras. 1 and 3 StG ZG). From 12 years of ownership the maximum rate falls by 2.5 percentage points a year; after 25 years or more it is 25%; gains below CHF 5,000 remain tax-free (§ 199 para. 4). What is taxed is the gain, not the purchase price: proceeds minus investment costs, i.e. the purchase price plus deductible expenses (§ 193). The seller owes the tax; it is assessed by the municipality in which the property lies (§ 187 para. 2, § 192).

After only two years of ownership the return per year would be 15%, and so would the tax rate: CHF 45,000 instead of CHF 30,000. Holding period, deductible expenses and tax deferral are explained in our guide to the property gains tax in the canton of Zug; your own figure comes from the property gains tax calculator.

Is the agent's fee deductible from the property gains tax?

Yes. Documented agents' fees for the purchase and the sale are deductible expenses and reduce the taxable gain – as are documented advertising and brochure costs (§ 196 para. 1 let. f StG ZG), the costs of drawing up the purchase contract (let. h) and the charges connected with the change of ownership, i.e. your share of the land registry fee (let. g). Not deductible are your own work that has not been taxed as income, and expenses that are deductible for income tax, such as interest on a building loan or ordinary maintenance (§ 196 para. 2 StG ZG; Risch guidance notes).

The law does not say how high a fee may be for the municipality to accept it in full. Documented is the practice of the municipality of Risch: it accepts agents' fees up to a maximum of 3% plus VAT and asks for copies of the invoices. Other Zug municipalities may handle this differently – ask your municipal property gains tax office before you sign the sales mandate.

What does it cost to end a fixed-rate mortgage early?

If you terminate a fixed-rate mortgage before it expires because of the sale, you generally owe the bank an early repayment penalty. As the Swiss Banking Ombudsman describes it, the penalty corresponds to the difference between the agreed interest rate and the reinvestment rate the bank can obtain on the money and capital markets for the repaid capital over the remaining term. Your mortgage contract is decisive.

Simplified example with round figures: remaining capital CHF 800,000, remaining term 3 years, agreed interest 2.0%, reinvestment rate 1.0%. One percentage point of difference on CHF 800,000 makes CHF 8,000 a year, around CHF 24,000 over three years – without discounting; the exact calculation and any fees are governed by your contract.

Three routes reduce the cost: transfer the mortgage to the buyer, if the bank agrees; take it with you to a replacement property; or time the sale to coincide with the end of the term. Obtain the figure from your bank in writing before you set the asking price.

Which documents cost money, and when is what due?

The official documents are inexpensive but need lead time. The land register extract is ordered from the Office for Land Registry and Geoinformation, charged by time spent and costs at least CHF 45; it is sent by post only (zg.ch, § 13 Land Registry Fee Tariff). For the tax return the municipality requires the purchase contract and the final building account. If the purchase was more than 25 years ago, these are replaced by an extract from the Zug building insurance (Gebäudeversicherung Zug) showing the insured value 25 years ago. Added to this are the receipts for value-adding expenses and for the agent's fee (guidance notes of the municipality of Risch).

The deposit at notarisation is often underestimated: the buyer is jointly and severally liable for the property gains tax (§ 202 para. 1) and secures themselves in this way. Plan for this liquidity. The path from the mandate to notarisation is described in our guide to how selling a house in Switzerland works.

What this means for your sale

In our sales mandates we work through the cost side with the owners before the price is set. The starting point is the valuation with the IAZI/CIFI models that Swiss banks also use: it provides the figure from which the property gains tax, the deposit and the net proceeds can be estimated seriously. We also obtain the early repayment penalty from your bank early on and clarify with the municipality how it treats the agent's fee.

Professional photography, drone footage, a 360° tour (in German) and the sales brochure are part of the mandate; the invoices belong in your tax return, because the agent's fee as well as advertising and brochure costs are deductible. We accompany you up to notarisation and agree the split of costs in the purchase contract with the notary. Start with a valuation of your property; how we sell in the canton is described under selling property in the canton of Zug.

This guide does not replace tax or legal advice. The assessment by your municipality is decisive.

Sources

This guide does not replace tax or legal advice. The assessment of your municipality is decisive.