Estate agent commission in Switzerland: how much it is, who pays it and what “only on success” means
- How high is the estate agent commission in Switzerland?
- Who pays the commission: buyer or seller?
- What the commission includes and what it does not
- “Only on success”: what it means and the traps in the contract
- Worked example: what is left of CHF 900,000
- Commission and taxes: what is deductible
- Checklist: the right agent at the right price
The commission is the one figure every owner has in mind before talking to an estate agent. Rightly so: for a house at CHF 900,000 it is an amount between CHF 9,000 and 27,000. This guide explains what is usual in Switzerland, who pays the commission, when it falls due, which costs come on top and how to recognise a fair brokerage contract. With a worked example and the open comparison with selling without an agent, which we describe in the guide to the selling process and in the guide Selling a house without an estate agent .
In brief
- No statutory rule: the commission is negotiable; the usual rate is 2 to 3 % of the sale price plus 8.1 % VAT, for apartment buildings often 1.5 to 2 %
- In German-speaking Switzerland it is almost always paid by the seller, and only after the deed is signed at the notary’s office
- Success basis means: no sale, no commission. Beware of flat fees, minimum fees and expense compensation on withdrawal
- ImmoBilà: commission from 1 %, only on success, mandate without upfront costs; valuation, documentation, listings and viewings included
- The commission is deductible as investment costs in the property gains tax, up to a maximum of 3 % of the sale price
How high is the estate agent commission in Switzerland?
Swiss law has no fee schedule for estate agents. The brokerage contract (Art. 412 ff. of the Code of Obligations) is freely negotiable. In practice, ranges have become established:
- Single-family houses and condominiums: 2 to 3 % of the sale price
- Apartment buildings and investment properties: 1.5 to 2 %, less for large volumes
- Online and fixed-price providers: flat fees of around CHF 10,000 to 20,000, some with advance payment
- ImmoBilà: from 1 %, only on success, without upfront costs
VAT of 8.1 % is added to the commission. At 2.5 % on CHF 900,000 that is CHF 22,500 plus CHF 1,822.50 VAT, CHF 24,322.50 in total. Always ask whether an offer is meant “incl. VAT”.
Who pays the commission: buyer or seller?
In German-speaking Switzerland the seller pays: he engages the agent, the agent works for him. The buyer pays no commission; he pays the purchase price, half of the property transfer tax and his share of the notary and land registry fees.
There are exceptions for search mandates (the buyer engages an agent to find a property) and in individual cantons where splitting is customary. In the canton of Basel-Landschaft the seller’s commission is the rule. Beware of models in which the agent collects from both sides: then he represents nobody properly.
When is the commission due? By law when the contract is concluded; in practice after the public notarisation at the notary’s office. Reputable contracts set it out this way; the commission is then settled from the sale proceeds.
What the commission includes and what it does not
The commission covers the entire marketing. A list you should find in the brokerage contract:
- Valuation and pricing strategy
- Obtaining the documents (land register, plans, building insurance)
- Photos, floor plans, sales documentation, listings on the portals
- Answering enquiries, conducting viewings, vetting prospective buyers (financing confirmation)
- Negotiation, reservation agreement, coordination with the notary and banks
- Support through to notarisation and handover of the keys
Not included in the commission are the costs that arise even without an agent: notary and land registry (in the Baselbiet around CHF 800 to 2,500 plus CHF 300), the property transfer tax (2.5 %, half each) and the property gains tax. On top of that there may be early repayment penalties from the bank if a fixed-rate mortgage is terminated early; more on this in the guide to the mortgage when selling a house.
“Only on success”: what it means and the traps in the contract
The brokerage contract is a success-based contract: no sale, no commission. That is the point of it, and this is exactly where some contracts hide their costs.
- Expense compensation on withdrawal: some contracts provide for CHF 2,000 to 5,000 if you withdraw the mandate. A fair mandate has nothing of the kind
- Minimum fee: “from 1 %, at least CHF 10,000” is, for a flat at CHF 450,000, a commission of 2.2 %. Always convert the minimum amount into a percentage
- Advance payment for listings or photos: unusual and a warning sign
- Long-term exclusivity: the usual term is 6 months with extension; 12 or 24 months without a right of termination tie you to an agent who does not deliver
- Tail period: if you sell after the contract ends to a prospective buyer the agent introduced, the commission is owed; that is fair, but it must be limited in time (6 to 12 months)
- Commission on reservations: it only falls due on notarisation, not on a reservation the buyer can still cancel
At ImmoBilà the rule is: mandate without upfront costs, no expense compensation, commission only after the notary. If we do not sell, you owe us nothing.
Worked example: what is left of CHF 900,000
Agent at 3 %: commission CHF 27,000 plus VAT CHF 2,187 = CHF 29,187.
Agent at 2 %: commission CHF 18,000 plus VAT CHF 1,458 = CHF 19,458.
ImmoBilà at 1 %: commission CHF 9,000 plus VAT CHF 729 = CHF 9,729.
The same in all three cases: seller’s share of the property transfer tax CHF 11,250 (1.25 %, waived on a replacement purchase within two years), notary/land registry pro rata around CHF 1,000, property gains tax depending on the gain and the holding period.
The difference between 3 % and 1 % for this house is CHF 19,458 , more than a new bathroom. What matters, though, is not only the percentage but the price achieved: an agent who costs 3 % and gets 2 % more in price is more expensive than one who costs 1 % and knows the market.
Commission and taxes: what is deductible
The estate agent commission counts as investment costs for the property gains tax; in the canton of Basel-Landschaft up to a maximum of 3 % of the sale price. It therefore reduces the taxable gain; at a marginal rate of 25 % the canton effectively pays a quarter of the commission. Listing costs and the notary fees of the sale are also deductible.
For income tax the commission is not deductible for private individuals. For let properties, the letting commission (with us one month’s rent) is deductible as property expenses. Questions on tax planning for the sale are answered by our property fiduciary Roman Frey as part of our financial advice and fiduciary services.
Checklist: the right agent at the right price
- Have the commission stated in writing with and without VAT, and have all additional costs listed
- Convert minimum fees into percentages
- Insist on a mandate without upfront costs and without expense compensation
- Term 6 months, tail period 12 months at most
- Ask for comparable properties the agent has sold in your municipality
- Have the pricing strategy explained: how is the asking price arrived at, when is it lowered?
- The cheapest agent is the one who achieves the best price, not the one with the lowest percentage. Both together is the goal
Questions on this topic.
How high is the estate agent commission in Switzerland?
There is no statutory rule. The usual rate is 2 to 3 % of the sale price plus 8.1 % VAT for houses and flats, 1.5 to 2 % for apartment buildings. ImmoBilà works from 1 %, only on success.
Who pays the estate agent commission when selling a house?
In German-speaking Switzerland and in the canton of Basel-Landschaft, the seller who engaged the agent. The buyer pays no commission, but the purchase price and his share of property transfer tax, notary and land registry.
When is the estate agent commission due?
After the public notarisation of the purchase contract at the notary’s office. Reputable contracts set it out this way; the commission is settled from the sale proceeds. With a mere reservation nothing is owed yet.
Do I have to pay anything if my house is not sold?
With a fair success-based mandate, no. Watch out in the contract for expense compensation, minimum fees and advance payments: these are the places where costs arise despite there being no sale. At ImmoBilà there are no upfront costs.
Is the estate agent commission tax-deductible?
For the property gains tax in the canton of Basel-Landschaft, yes, as investment costs up to a maximum of 3 % of the sale price. For income tax it is not deductible for private individuals.
Can I negotiate the commission?
Yes, it is freely agreed. But do not negotiate only the percentage: also negotiate the term, the tail period, the scope of services and the waiver of upfront costs. And compare what price the agent has achieved for comparable properties.
1 % commission, only on success: what does that mean for your house?
We value your property free of charge on site and show you in black and white what is left net after commission, taxes and fees.
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