Buying a property in Switzerland. Guide to Swiss property. Ex pat guide to buying property in Switzerland. How to buy property in Switzerland. Help with moving to Switzerland.
Foreign nationals are allowed to buy residential property in Switzerland, although there are restrictions on the location and type of property that can be purchased.
EU/EFTA nationals who hold a Residence Permit B and all foreign nationals with a Residence Permit C can buy any number of properties in Switzerland, although special cantonal approval is required to buy a property which exceeds 3,000m2 in size.
Other foreign nationals are only allowed to buy a holiday home or investment property in a few cantons of Switzerland if approval is given, and this is subject to a quota of 1,440 foreign purchases each year. Most cantons and all the main cities totally do not allow non-resident foreign nationals to purchase property at all. Investment properties which are available for purchase by non-residents are low-rental apartments which are tied to below-market rental prices for 20 years. To encourage foreign investment in this rental market, special benefits are offered such as tax breaks, lower rents and government subsidies. Foreigners buying holiday homes or investment properties are only allowed to live in the properties themselves for three months at a time, and for a maximum of six months in any year.
Real estate prices are high in Switzerland, although vary considerably between regions and even within cities. Typical starting prices in Geneva are around CHF100,000 for a one-room studio flat, CHF400,000 for a three-room apartment, and anything up to several million for a family house. Mortgage facilities are available to residents from Swiss Banks, but normally for only between 60 and 80% of the purchase price. However, mortgage rates are low, usually under 5%.
Once you have found a suitable property and agreed on a purchase price, you will need to pay appoint a Notary Public to carry out the legal checks and deal with the transfer of payment to the seller. An initial deposit of around 10% of the purchase price is usually required. As well as the purchase price, you will be required to pay a transfer tax of up to 4% of the property's value. Purchase fees are usually less than 5% of the purchase price. In some cantons you are not allowed to resell a property within five years.
