Buying a house in Graubünden: prices, equity and mortgages (cross-border guide)

Context

In brief

• In the Canton of Graubünden, real estate purchases follow federal and cantonal regulations
• The procedure requires a notary, surveyor, bank, and registration with the Land Registry Office (90-120 days)
• Additional costs typically amount to 5-8% of the purchase price

Key facts

• What: Real estate purchase in the Canton of Graubünden
• Where: Canton of Graubünden, Eastern Switzerland
• Who: Buyer, notary, surveyor, bank, cantonal Land Registry Office
• Timeline: 90-120 days from promise to registration
• Legal basis: Code of Obligations (CO, art. 964-1004) + cantonal legislation

How real estate purchase works in Graubünden

In the Canton of Graubünden, as in other Swiss cantons, real estate purchases follow procedures regulated by federal laws and cantonal legislation. The Swiss Code of Obligations (CO) sets the uniform legal framework, while the canton integrates with local provisions on taxation, land registry, and administrative procedures.

The process begins with a visit to the property and informal price negotiation with the seller. Once a preliminary agreement is reached, the parties proceed with the promise of sale, a formal document signed before a notary that binds both parties to their obligations. This phase is critical: the notary has the legal duty to verify the legality of the transaction, the seller's title of ownership (consulting directly the Land Registry Office of the Canton of Graubünden) and any pre-existing mortgage rights.

Roles of the involved parties

The notary drafts the promise of sale and the final notarial deed, ensuring the transaction's compliance with regulations. In the Canton of Graubünden, as in other cantons, the notary must verify that the seller is the registered owner and that there are no liens or other encumbrances preventing the sale.

…

Operational details

Purchase costs: transfer tax, notary fees and taxes

In the Canton of Grisons, as in many Swiss cantons, the purchase of a property involves various additional costs beyond the purchase price. Real estate acquisition is one of the main components of the overall cost of living for those who decide to settle in a new region. Understanding these costs is essential to assess the overall budget and the sustainability of the investment.

The real estate transfer tax (so-called transfer tax) exists in the Canton of Grisons and is levied at the cantonal and municipal levels. The rate and calculation method vary depending on the specific municipality and the type of transfer (private sale, inheritance, etc.). The bank providing the mortgage gives an indicative estimate of this tax during the pre-approval phase of the financing.

Notary fees are set by federal law and cantonal tariffs. Generally, the cost of drafting the notarial deed corresponds to a percentage of the purchase price, calculated based on standardized tariffs. The fees of the surveyor for the technical appraisal and cadastral documentation are variable and depend on the complexity of the property.

Finally, there are registration fees with the Land Registry Office of the Canton of Grisons, necessary for the registration of the property and the mortgage. These are also modulated based on the value of the property and are relatively contained.

Aggregate estimate of additional costs

Generally, additional costs (transfer tax, notary, surveyor, registration) range between 5% and 8% of the purchase price, depending on the Grisons municipality and the specific situation. It is therefore essential to request precise quotes from the notary and surveyor before signing any commitment.

…

Key points

Mortgage lending and financial sustainability

The mortgage loan is the most common instrument for financing the purchase of a property in Switzerland. In the canton of Graubünden, as elsewhere, banks apply very strict sustainability criteria to evaluate the borrower's ability to repay the loan.

The golden rule of financial sustainability states that the real estate burden (mortgage installment, interest, taxes, insurance, maintenance) does not exceed 33% of the buyer's gross monthly income. This is the main criterion that banks use to approve or reject the granting of a mortgage. If the load exceeds 33%, the loan request will be rejected or reduced.

Furthermore, banks require the buyer to cover at least 20% of the purchase price with his own funds (personal savings, inheritance, pension liquidation). The remaining 80% can be financed through a mortgage loan. Some institutions allow up to 85% financing, but under more stringent conditions (higher interest rates, compulsory mortgage insurance).

Using social security to purchase real estate

The occupational pension scheme (Second Pillar / LPP) can be partially used for the purchase of the first main residence, through the mechanism of foreclosure of pension credit. In the canton of Grisons, as well as throughout Switzerland, it is possible to withdraw up to 50% of the LPP balance (or a maximum equal to the value of the property, if lower) to reduce the mortgage and improve affordability.

Similarly, the Third Pillar (3a) can be used to finance a property that will become the primary residence. These mechanisms are particularly useful for reducing the use of large mortgages and for improving the 33% affordability rule.

…