How a foreigner can buy real estate in Switzerland: rules and restrictions

Dream of Switzerland

Everyone who has once visited Switzerland invariably wants to return to build a new life in a new land. For many, the dream of buying a charming house on a magnificent alpine slope or a modern apartment in the center of Zurich becomes a top priority. However, the process of realizing these desires proves to be quite difficult for foreigners due to the country's strict regulations regarding the purchase of real estate.

Opportunities for foreigners

Nevertheless, foreigners should not give up hope of becoming homeowners in Switzerland. It is quite achievable, if you familiarize yourself with the basic rules and features of buying real estate in advance, as well as fulfill a number of necessary conditions.

Real estate purchase regulations

Foreign nationals wishing to purchase property in Switzerland face certain regulations. The purchase process is under the strict control of federal legislation, which defines the conditions that foreigners must meet. This legislation is referred to in informal circles as theLex Koller.

Verification of purchase rights

Before you begin the buying process, it is important to find out if you are eligible for the transaction. To do this, you should pay attention to several key factors:

• Swiss residence permit;
• Your nationality(whether you are a citizen of an EU state or not);
• The purposes for which you want to purchase the property(for permanent residence, vacation or business).

Housing conditions for permanent residence

If you plan to live in Switzerland and wish to buy a property for permanent residence with the intention of staying here for more than 90 days, it is mandatory to obtain a Swiss category residence permitBorC. This condition is relevant even for citizens of EU and EFTA countries.

Restrictions for foreign citizens

If you do not have a Swiss residence permit, you may only consider buying commercial or vacation property, subject to prior approval from the local authorities. It is also important to realize that owning real estate does not automatically entitle you to a residence permit. After completing the purchase process, foreigners can only count on a Schengen visa, which allows you to stay in the country for up to 90 days for six months.

The process of buying real estate for permanent residence

It is now worth taking a closer look at the process of acquiring a permanent residence. Citizens of EU or EFTA countries who have a Swiss residence permitB,CorLas well as third-country nationals with a permit.Ccan freely purchase various types of real estate without significant restrictions (including the ability to purchase multiple properties).

Restrictions for third-country nationals

However, for non-EU or EFTA nationals who hold a residence permit of the following categoryBThere are more stringent conditions. In their case, it must be taken into account that it is not possible to purchase residential real estate without additional grounds. This is stipulated in the applicable laws and regulations at both the federal and cantonal levels, which may have their own unique requirements and restrictions.

Preparation for the deal

For the successful completion of the acquisition is very important to prepare carefully, to study all aspects and, if necessary, to consult with professionals working in the field of real estate and lawyers. A competent approach to solving all these issues will provide you with a chance to realize the dream of buying a home in this wonderful country.

In Switzerland there is a strict procedure for foreigners to purchase real estate. They can only exercise the right to purchase one property to be used as a permanent residence, and this only in the area where they are actually located. These measures are aimed at protecting the domestic market to limit the influx of investors and keep housing affordable for locals.

In addition, owners of such facilities are entitled to acquire a plot of land for construction, but must comply with certain regulations.

Rules for acquiring real estate

• Construction period: a building must be constructed on the purchased land within one year of purchase.
• Registration of rights: all rights to the property must be registered directly in the buyer's name.
• Accommodation in the facility: the new owner must be on site and renting out the property, even partially, is prohibited.
• Land plot area: may not exceed 3,000 square meters. If a larger plot is required, special authorization from the local authorities will be required.
• Living area: it is not subject to such restrictions.

Change of residence

If a foreigner decides to change his or her place of residence within Switzerland, he or she can buy another property, whether it is a house or an apartment. The first property does not have to be sold, but can be used as a vacation home or rented out. However, the new property must be used solely as a primary residence address.

Prohibition on the purchase of multiple properties

It is forbidden to buy multiple properties in Switzerland without prior approval from the local authorities, as this is considered a serious violation of Swiss law. This can result in administrative fines or the annulment of transactions. It is therefore important to familiarize yourself with the current requirements and conditions before making a purchase decision to avoid trouble.

Buying a vacation property

With regard to the purchase of vacation properties, citizens of the European Union or the European Free Trade Association, as well as foreigners with a B, C or L residence permit, can carry out such transactions without any problems. They do not have to wait for authorizations from the cantonal authorities. However, foreigners with B or L visas who are not EU or EFTA citizens are required to obtain authorization documentation.

The process of obtaining a permit

The process of obtaining this authorization can take several months and requires you to contact a local notary who will act on your behalf and apply to the relevant authorities. There are prerequisites for the successful completion of the transaction.

• Location: the property must be located in special tourist zones located in cantons such as Appenzell, Bern, Glarus, Jura, Neuchâtel, Obwalden, Schwyz, Uri and others.
• Quota: there is a condition that limits the number of properties acquired for vacation purposes within the annual quota set for foreign nationals in each canton.

Quota restrictions

Currently, the maximum number of resort properties that can be sold for use by foreigners is 1,500 units per year. If this quota is exceeded, the purchase will have to wait until the new year to start a new procedure.

Conclusion

In conclusion, it is extremely important to carefully follow all the terms and conditions associated with buying real estate in Switzerland. This will help to avoid negative consequences and make your investment safe and secure.

Features of holiday accommodation in Switzerland

According to current Swiss law, the maximum floor area of a spa accommodation must not exceed 200 square meters. This includes areas such as kitchens, bathrooms, living rooms, indoor swimming pools and saunas. However, unaccounted square meters include such areas as balconies, attic rooms, basements and stairs. The size of the land plot for such objects must not exceed 1,000 square meters.

Special conditions for foreigners

There are also certain restrictions for foreign nationals wishing to purchase vacation property in Switzerland. According to the established rules, foreign residents can only own one house, which must be owned by the entire family, consisting of spouses and minor children. When the son or daughter of the owner reaches the age of 20, they can apply for the right to purchase the property in their own name, but this is only possible if they are financially independent, which must be officially confirmed.

Rules for the use and sale of holiday accommodation

The sale of holiday properties is prohibited for the first five years after purchase. The owner must use the home for at least two weeks during the tourist season, which, for example, in Ticino lasts from April to October. In addition, the owner's family may stay in the vacation home for up to six months a year, but each visit must not exceed 90 days. If the owner plans to stay in Switzerland for more than three months, he or she must apply for a residence permit, even if he or she is a citizen of EU or EFTA countries.

Rental of holiday accommodation

Long-term rental of holiday properties is prohibited and owners can only carry out short-term rentals. It is also important to remember that the owner must start using their home no later than two years after registration in the cadastre. Changes to construction projects require authorization from the relevant authorities.

Purchase of commercial real estate

In terms of purchasing commercial real estate, foreign nationals, even those without a Swiss residence permit, can buy commercial properties for business purposes without prior approval from the local authorities. This list includes:

• warehouses;
• production areas;
• office spaces;
• restaurants;
• hotels;
• retail spaces;
• medical offices;
• workshops.

Utilization of commercial facilities

Foreigners have the right to use the acquired objects both for their own business and for renting them out. However, it is important to remember that the construction of residential buildings or their rental is not considered a legitimate business activity and is prohibited by Swiss law. The exceptions are:

• EU or EFTA citizens residing in Switzerland and holding a B, C or L residence permit;
• third-country nationals with a type C permit who obtain the right to acquire real estate for investment purposes.

Buying real estate in Switzerland: the basics

While on-site accommodations are an important part of the hotel business, their purchase or construction does not require special permits. In this article you will find extensive information on key aspects of Swiss real estate acquisition by foreign nationals.

Types of property for foreigners

The types of property can vary greatly depending on the residence permit. For example, foreigners are only able to purchase one residential unit that they can use as their own home. However, it is important to emphasize that access to purchase other properties in residential zones is limited.

Resort villas and apartments

As for resort villas and apartments, foreigners can purchase them without the need for prior approval from the local cantonal authorities. However, this option is only available in certain tourist areas, subject to compliance with established quotas and authorization from the cantonal authorities.

Commercial real estate

If we talk about commercial real estate, there are no restrictions for foreigners, which allows them to freely conduct any transactions.

Tax obligations for property owners

Nonetheless, non-resident property owners in Switzerland face certain tax obligations. Among the main taxes to be considered are:

• Income Tax:it is collected from owners in the form of notional income from the property. Its calculation is based on the characteristics of the property and current rental market conditions.
• State Tax:is calculated on the basis of the owner's total property and is levied at the canton level. In this case, the value of the property is determined taking into account many factors at the time of valuation.
• Property Tax:this tax is set in each canton and depends on the tax value of the dwelling itself.
• Capital Gains Tax:it must be paid on the income received from the sale of real estate. The tax is calculated as the difference between the purchase price and the sale price, taking into account possible repair and reconstruction costs. This tax is also levied at the cantonal level.
• Inheritance Tax:if the property was inherited or received as a gift, the amount of this fee will be from 15 to 55%.

Search for real estate in Switzerland

When it comes time to look for real estate in Switzerland, it is important to keep abreast of market trends and find the most attractive investment options. Specialized articles and reviews, which regularly appear on specialized web sites, are useful in this matter.

Study of offers on the market

This is followed by the initial stage of researching offers on the market.

Introduction to Swiss real estate

Swiss websites such as homegate.ch, newhome.ch and immoclick.ch offer many attractive real estate offers. If you are thinking of buying a home in this country, it is essential to consider all stages of the process.

First step: choosing a property

The first thing to do is to choose a property carefully. In this key step, you need to determine your goals: whether you plan to live in your new home or hope to rent it out. You should also consider restrictions for foreign investors, as they may affect the real estate options available to you in the right region. Don't forget that during the search process, you will need to find an experienced notary who will definitely be present when you sign the deal.

Reservation of the object

The next step is to reserve an already selected property. Once you have found a suitable property, you will need to work with a local notary who will represent your interests along with those of the seller until the transaction is finalized. The notary will help create a preliminary letter of intent and prepare a purchase agreement if you need to confirm legality with local authorities or obtain a Swiss residency visa.

Meaning of the sales contract

This contract is critical because it includes the terms of the deal, payment terms, and penalties if the terms are not met. To reserve a property, you will need to make an advance payment of10%of the agreed purchase price to the account of the seller or the notary. By signing the preliminary agreement, you can be sure that the owner will not transfer the property to another buyer unless the local authorities refuse to authorize the transaction. If this happens, the down payment will be refunded, although notary fees may still be required.

Required permits for foreign nationals

It is important to understand that the process of buying real estate for foreign nationals includes the need to obtain the appropriate permits. If a foreigner wants to buy a property in a resort, the notary must start the process of obtaining a special permit calledlafe. This process takes on averagefrom three to four months. However, please be aware that there are existing properties in Switzerland for which purchase permits have been issued. If you plan to purchase such a property, you do not need to obtain a new permit.

Conclusion

In conclusion, the process of buying real estate in Switzerland requires care and a thorough understanding of many details. Prepare yourself for the fact that you will not only need to familiarize yourself with the local market, but also thoroughly research the legal aspects that may affect your transaction. Having a knowledgeable notary and following all the necessary steps will help make the real estate buying process easier and carefree.

Moving to Switzerland and applying for a residence permit

When moving to Switzerland to purchase real estate without a residence permit, the foreigner must first apply for a category B residence permit. This procedure can take from eight to twelve weeks.

Signing the purchase and sale agreement

After successfully obtaining this important document, the buyer and the seller of the property sign the final contract of sale. This step requires the mandatory participation of a notary, otherwise the transaction will be considered invalid. It is worth noting that the period for signing the contract after receiving the authorization is no more than 30 days.

Declaration and notary services

During the issuance of a residence permit, the foreign national signs a declaration that complies with the lawlex koller. In addition, the notary must certify that the buyer has no other properties in Switzerland. It is important to remember that it is forbidden to sell the property for five years after purchase.

Final payment and registration of the transaction

After the previous step is completed, the final payment of the remaining amount for the property is made. This step takes place after the notary has confirmed the receipt of the funds. The notary will then register the transaction at the Land Registry, which may take several weeks.

Full ownership rights are transferred to the buyer only after the transaction has been successfully registered with the land registry and the relevant information is indicated in the documents.

Additional expenses when purchasing real estate

It is important to realize that the process of buying real estate in Switzerland entails a number of additional costs. For example:

• The tax associated with the transfer of land titles can vary from 0% to 4% depending on the particular canton.
• In Lucerne this tax is 1.5% of the value of the property, in Bern and Valais - no more than 1.8%.
• Some cantons, such as Aargau, Zurich and Zug, do not have this tax at all.

Commissions and services

The costs associated with notary services must also be considered:

• Typically, notary fees range from 0.025% to 0.7%, depending on the region.
• In Zurich, the cost of a notary public is approximately 0.1%, while in Bern it ranges from 0.1% to 0.5%.

Also, do not forget about the possible costs of real estate agencies. Their cost can vary from 3% to 5% depending on the canton and the value of the property. In addition, it is necessary to take into account mortgage registration fees, which also differ by region and can fluctuate significantly. For example:

• In Valais, fees start at 1% of the value of the property for prices over CHF 200k.
• For real estate up to 500 thousand francs, the rate will be 0.8%.
• For properties priced above one million Swiss francs, the rate may be around 0.7%.

Registration of real estate rights

Registration of real estate rights in the land cadastre also requires additional costs, which depend on the region. On average, this amount is about 0.6%:

• In Lucerne, it does not exceed 0.2%.
• In Zurich, it is around 0.25%.

Conclusion

In this regard, when planning the purchase of real estate in Switzerland should consider not only the price of the object itself, but also all the associated costs to properly allocate the budget and avoid unexpected financial costs.

Everyone who has been to Switzerland at least once dreams of returning here for permanent residence. In most cases, they all have the same goal - to buy a cozy house in an alpine meadow or a comfortable apartment in a prestigious area of Zurich. It should be noted that not all foreigners manage to realize their dream. This is due to the strict restrictive measures that are in force in the country in relation to non-residents planning to buyreal estate.

However, not everything is so hopeless for foreigners. It is quite possible to get your own house or apartment in Switzerland, if you study the main nuances of buying housing and comply with a number of conditions.

Rights of foreign buyers

Buying real estate in Switzerland for non-residents is strictly limited. The whole process is regulated in accordance with the country's federal law on the acquisition of real estate objects by foreigners, known under the unofficial name - lex koller. Before purchasing square meters in Switzerland, it is important to determine whether you have the right to make such a transaction.

There are a number of factors to consider to help sort this out:

• Whether you have a Swiss residence permit or not;
• Which country you are a citizen of (EU states or not);
• For what purpose the property is being purchased (permanent residence, vacation home, or commercial property).

If you are planning to take up regular residence in Switzerland and wish to stay for more than 90 days, you will need a Swiss residence permit (category B or C). This authorization is required even if you have EU or EFTA citizenship status. If you do not have a Swiss residence permit, you will only be able to purchase a commercial or vacation home, provided that the cantonal authorities grant you prior authorization to purchase.

It is also important to note that the purchase of square meters in Switzerland does not entitle you to a residence permit. After the purchase of square meters, foreigners can only apply for a multiple entry Schengen visa, which will allow you to stay in the country for 90 days for six months.

Acquisition of real estate for permanent residence

EU or EFTA citizens residing with Swiss residence permit B, C or L, as well as third-country nationals with C permit, have the possibility to buy any type of property in Switzerland without restrictions (up to several properties). Limits apply to citizens from non-EU or EFTA countries with a B permit. They have the right to purchase only one residential property as a permanent residence and only in the place where they actually reside.

In addition to housing, this category of citizens is allowed to buy land plots for construction. In this case, a number of conditions must be met:

• A structure must be built on the land no later than one year after its acquisition;
• The property must be in the buyer's name;
• The owner must live in the erected object himself (renting out the building even partially is prohibited);
• The area of the plot should not be more than 3 thousand square meters - if it exceeds these parameters, an additional permit will be required (the restrictions do not apply to residential property).

If a foreigner needs to change his place of residence within the country, he has the right to purchase another private house or apartment. According to the law, he will have the opportunity not to sell the first property: it can be used as a vacation home or rented out. At the same time, the buyer must be sure to use the newly purchased object for permanent residence. It is important to remember that it is impossible to purchase several houses in Switzerland without prior authorization from the authorities - it is considered a violation of local law.

Buying a property as a vacation home

EU or EFTA citizens with a Swiss residence permit B, C or L, as well as non-EU or EFTA citizens with a C permit, can purchase a vacation property in Switzerland without waiting for a permit from the cantonal authorities. Foreigners with a B or L permit who are not EU or EFTA citizens are required to have a permit to purchase a vacation home in Switzerland.

To obtain this document, you need to contact your local notary to submit an application on your behalf to the cantonal authorities.

The entire process can take several months and requires a number of mandatory conditions to be met:

• Vacation accommodation must be located in special tourist zones located in Appenzell, Bern, Glarus, Jura, Neuchâtel, Obwalden, Schwyz, Uri and a number of other cantons;
• A house can only be bought if the annual quota for holiday accommodation provided for sale to foreign nationals in each canton is not exceeded.

Currently, no more than 1,500 vacation properties are allowed to be sold in Switzerland each year. If this quota is exceeded, the foreigner must wait until the following year for authorization.

Conclusion

In conclusion, I would like to emphasize that although Switzerland imposes strict restrictions on the purchase of real estate by foreigners, this should not stop you from getting your own corner of this picturesque country. Being aware of the legal nuances and strict conditions is the first step towards realizing your dream of living in the heart of the Alps.

With the right approach, patience and perseverance, every capable foreign buyer will be able to find their ideal home in Switzerland, which will not only be a place of relaxation, but also a symbol of a new life full of serenity and beauty, perfectly combining modernity with nature. It is a place where every detail is created with sensitivity and love, and where your dreams of living in harmony with nature can become a reality.