Why is it difficult for foreigners to buy real estate in Switzerland?

Peculiarities of buying real estate in Switzerland

Switzerland retains considerable interest from foreign buyers, but the process of buying real estate in this country differs significantly from similar procedures in other countries. Experience shows that for a person who has never been to Switzerland and does not know its cultural peculiarities, it can be difficult to decide to buy a home here.

Unlike many countries where it is quite easy to choose the desired object, in Switzerland the buying process has its own specific nuances. Gennady Gabrielyan, director of the company “House in Europe”, points out thatconditions for the sale of real estate to foreigners are strictly regulated by quotasIf this framework did not exist, the market could face serious difficulties due to a major increase in demand from foreign customers. This could damage the charm of Switzerland, home to only 7 million people, where unique and traditional aspects of life are highly valued.

Legislative restrictions

Moreover, the meanings of the restrictions on the purchase of real estate for foreigners do not stop there. In the late 1990s, Swiss law established a clear distinction between primary residences and secondary homes, which in the UK are known as second homes and are intended for temporary residence or vacation.

• Principal Dwelling:It can be purchased without any special problems, but with the condition of Swiss citizenship or residence permit.
• Secondary Housing:it is generally not available to foreign buyers in most Swiss regions.

Documents confirming these data must necessarily be attached; otherwise, the transaction will be considered illegal. Gennady Gabrielyan explains that even high-profile EU diplomats working in Geneva are often forced to look for accommodation abroad, in neighboring French districts.

Ski resorts and restrictions

When it comes to ski resorts, second homes are virtually non-existent in major cities such as Zurich, Geneva and Bern, as well as in most of the cantons in the flat part of the country. However, it is possible to buy a second home in more mountainous areas, but there are limitations.

Different rules are imposed on foreigners, and the number of buyers of new buildings is also limited by quotas set each year by local authorities for approval by federal agencies.

• French cantons:open to investment by foreign buyers, especially Vale and Vaud.
• German part of Switzerland:It is almost impossible to make a purchase, except in some cantons in the Bernese Oberland region.

Liberal norms of the cantons

Even the so-called open cantons have their own specific rules and restrictions for foreigners. For example, the canton of Vaud, which is home to famous resorts such asChateau d'Eau,MontreuxandVillar, is characterized by one of the most liberal norms compared to other regions.

These places attract many buyers, but the buying process, as everywhere, requires careful preparation and understanding of all the nuances. Those who aim to become a property owner in Switzerland should carefully study the patterns and requirements to avoid possible difficulties.

Conclusion

All this shows that Switzerland, with its unique living and recreational environment, actively protects its culture and traditions from undue influence by foreign investors. Consequently, the process of buying here can take considerable time and effort. However, the experience of living in Switzerland, amidst majestic mountains, stunning scenery and a unique atmosphere, can significantly exceed all expectations, attracting connoisseurs of a high standard of living and comfort.

Restrictions for foreign nationals when buying real estate in Switzerland

Foreign investors face certain rules and restrictions when buying property in Switzerland that are worth considering, as Philip Barker, managing director of Overseas Homesearch, emphasizes. First of all, they can stay on their property for a maximum of six months per year, with their stay lasting at least three consecutive months. In addition, some cantons have specific restrictions on the size of property purchased by foreigners, as well as conditions regarding its subsequent resale.

Popular cantons for investors

For Russian investors, the cantons of Valais and Ticino are of the greatest interest, according to the experts of the company “House in Europe”. No less remarkable is the canton of Graubünden, where famous resorts such as St. Moritz and Davos are located. Gennady Gabrielyan notes that Davos is famous for its well-developed infrastructure for skiing, but this is not its only advantage. In general, there is a low interest from foreigners to purchase real estate in the Rhaeto-Romani region.

Canton of Valais

Let's take a closer look at the opportunities offered by the cantons of Valais and Ticino. The canton of Valais, located near Geneva, is famous for its ski resorts and magnificent winter scenery. This region has an excellent climate and high quality ski slopes, which makes it attractive to foreign buyers. Many of them decide to buy “second homes” to enjoy a comfortable vacation for three months of the winter season and another two to three months of summer in the Alps.

• Canton has 1400 quotas that are regulated by local authorities to prevent speculation in the real estate market.
• This helps to preserve the uniqueness of Swiss ski resorts such as Four Valleys.
• Gennady Gabrielyan also notes that Swiss law imposes restrictions on the resale of foreignreal estate within five years to another foreign buyer.

At the same time, local residents can realize their property without delay. This law creates a so-called“cooling off period”which helps to prevent sharp price increases in the market.

Canton of Ticino

Regarding the cantons of Ticino, it is worth noting that this Italian-speaking region is a subtropical zone with many palm trees along picturesque mountain lakes. It rarely experiences severe cold in winter, with January temperatures usually hovering around zero or slightly above.

Summer tourist flow in the Alps

It is important to mention that many may be surprised to learn that summer in the Alps attracts tourists as much as the winter season. According to statistics,51% of foreign travelto Switzerland fall during the summer months. Tourists who visit the Alps at this time are often keen hikers, among them many wealthy clients who prefer to stay in their homes or in high-class hotels to enjoy the beautiful mountain scenery and nature for long periods of time.

Advantages of buying real estate in Switzerland

The Venetian region of Switzerland offers many attractive reasons to invest in real estate, in addition to great opportunities for skiing in winter and exciting hiking in summer. For example, according to expert Rebecca Brown, the canton of Valais has transaction costs of only 2.5%. The canton also has no inheritance tax, which makes it particularly interesting for foreign investors.

In addition, mortgage lending in Switzerland is characterized by some of the lowest rates in Europe: the company “House in Europe” helps Russians to get a mortgage at rates from 4 to 4.5% per annum.

Stereotypes about Swiss real estate

There is also a stereotype that only very wealthy people can buy Swiss real estate. This does not correspond to reality. Despite the high prices for vacations in popular resorts, the cost of apartments in these areas is quite reasonable.

• Chesterton International offers apartments starting from 50 square meters with prices starting from 220,000 euros.
• The minimum cost of properties in the Overseas Homesearch catalog starts at 245,000 euros.
• Even in the segment of more expensive real estate prices do not cause a shock: a penthouse in the Golf C residential complex in Leukerbad costs about 1.2 million euros.

It is interesting to note that Russian buyers, as a rule, do not tend to save money, but prefer to invest in more expensive objects, the price of which is growing faster.

Types of resort real estate

There are two main types of resort properties: apartments in apartment buildings and individual chalets.

Apartments in apartment complexes

Apartments are usually located in small complexes with a limited number of units. The design of these buildings is controlled by local authorities, ensuring a uniform architectural style reminiscent of traditional chalets. There are strict requirements for the choice of building materials, which contributes to a harmonious appearance. These apartments are delivered ready to move in, except for furniture.

The company “House in Europe” presents the residential complex “Le Jardin des Alpes” (Alpine Garden), consisting of four five-storey buildings. Each of them has spacious covered balconies with magnificent views of the mountain scenery. Apartment areas range from 57 to 150 square meters, and the cost ranges from 255,000 to 862,000 euros. Balconies reach a size of 48 square meters, which significantly increases the comfort of living.

Individual chalets

The second type of real estate is individually standing chalets, which are also subject to strict restrictions for foreign citizens. The maximum area of such residential premises cannot exceed 350 square meters, and the maximum area of the land plot is 10 hectares. At the same time, the purchase of two neighboring plots is prohibited.

Interestingly, the cost of a chalet looks quite attractive. For example, an apartment of 160 square meters can cost about 1.25 million euros, while a similar chalet of 350 square meters can have a similar price.

Important:“This is due to the fact that large apartments are more likely to find their buyers in the market,” explains Gennady Gabrielyan, noting that detached houses require much more attention and care from the owner.

Buying real estate in Switzerland

Despite such high popularity of Switzerland as a tourist destination, to call the purchase of real estate in this country the best option for a vacation is ambiguous.

Introduction

In the modern world, more and more Russians are becoming owners of European companies, which opens up unique opportunities for them. When foreigners decide to purchase real estate, they need to obtain special permission to buy a particular object.

The process of buying real estate

The purchase process in Vienna is much simpler than in the mountainous regions of Austria. Lower Austria has its own restrictions, while the state of Salzburg has different rules, which can create some difficulties for foreigners.

Features of Tyrol

Of particular note is Tyrol, where there are strict conditions for foreign buyers, limiting their access to the local real estate market.

Overall, the cost of real estate in Austria remains tempting for investors, especially in Vienna, where luxury apartments in antique buildings can offer bargains compared to markets in cities such as London and Moscow.

Quality of life in Austria

Austria ranks high on the European stage in terms of living standards and protection of citizens' rights, being among the best countries. However, the ski resorts in the two federal states of Tyrol and Salzburg are the most attractive.

Demand for real estate by ski resorts

Demand for alpine villas in the immediate vicinity of the slopes of ski resorts such as Salzburger Sportwelt Amade and Europa Sportregion Zell am See - Kaprun remains high.

Interest in luxury real estate

Interest is not limited to objects located in the center, but also to exclusive offers.

Quality of life in Tyrol

Tyrol, which beckons with its mystery, some time ago became the leader in quality of life among 300 European administrative units, leapfrogging even the Swiss cantons.

Popular resorts in Tyrol

Nowadays, Ischgl is considered one of the most colorful resorts in Tyrol, surpassing such famous places as:

• Lech am Arlberg (Lech am Arlberg)
• St. Anton am Arlberg (St. Anton am Arlberg)

Also noteworthy is the resort of Sölden (Sölden), known as an Olympic center, with slopes suitable for the most experienced skiers.

Thermal water resorts

Just five kilometers from Sölden, in Langenfeld, one of the country's best thermal water parks has just recently opened, once again underlining the interest in thermal springs. The thermal spas here and in neighboring Switzerland attract tourists as much as the mountain slopes.

Other popular resorts

The resort of Mayrhofen, popular not only for its two skiing seasons but also for its picturesque nature in the famous Zillertal valley, is also interesting. Skiing enthusiasts also pay attention to the Kitzbühel resort.

Problems when buying real estate in Tyrol

However, buying real estate in Tyrol can be a daunting task. A few years ago, new laws were introduced that divided real estate into two categories:

• for permanent residence
• for temporary use

Buyers who intend to live in their homes, but for some reason cannot spend enough time in them, may have difficulties. Thus, finding a suitable temporary residence can be a real challenge for foreigners wishing to invest in the close-to-nature Tyrol.

Investment advice for Salzburg

Viktor Novikov urges Russian investors to pay attention to land plots in Salzburg, as this region offers much more favorable conditions for investments. For those who are completely in love with the beautiful Tyrol and are not ready to consider other options, they will face not only serious financial expenses, but also long waiting periods.

Description of the region

The state of Salzburg, on the border with Tyrol, is the place to find your dream home. It only takes an hour and a half to get from picturesque Mayerhofen to Zell am See, one of the most beautiful resorts in the region. Zell am See is famous for the clear waters of its lake and the many opportunities for outdoor activities in the summer, while nearby is the resort of Kaprun, famous for its ski slopes, which attract many winter sports enthusiasts. Both places are part of the significant “European Sports Region”, where one of the most extensive elevator networks in Austria has been established, second only to the one in Tyrol.

Popular resorts

Among the most popular resorts, the Gastein Valley also stands out, where you can find several famous resort towns.

• Bad Hofgastein is a cozy and picturesque town.
• Bad Gastein - resembles the famous Karlovy Vary with its thermal springs.

Bad Hofgastein has *radon clinics* - a unique place for those in need of therapeutic therapy for joints and more.

Other resorts

In addition, there are other resorts in the region, such as Saalbach and Hinterglemm, which are conveniently located just 15 km from Zell am See.

• Hinterglemm offers tourists the opportunity to spend their time actively year-round, thanks to numerous hiking trails.
• Amade Sports Field is an extensive network of resorts and slopes, featuring picturesque alpine villages like St. Johann.

The Flachau resort undoubtedly has the largest number of ski slopes, some of which are being prepared for the Olympic Games.

Preferences of Russian investors

As for the preferences of Russians, most of them are inclined to purchase residential houses with land plots, while apartments remain less attractive. The cost of a private house in the Alps ranges from300,000to700,000 eurosthat depends on the area and the cost of land in that location.

In Austria, there is a specific price dynamic: over the past five years, there has been an increase in real estate prices, followed by five years of price stabilization. Currently, Viktor Novikov observes that the country is in the fourth year of such stable "standing."

It is important to note that this trend does not apply to the most popular resorts, where prices continue to rise steadily. For example, there is a current offer from the company My Home: a house built in the post-war period, with an area of280 square meterslocated in the picturesque valley of the Rauris River, near the town of the same name, is valued at380,000 eurosNearby there are10 ski liftsand30 kilometers of perfectly prepared trails.

Conclusion

In conclusion, I would like to summarize the key aspects that were highlighted in the article about the real estate market in Switzerland for foreigners. This country, as I have found, has a unique regulatory system that protects its economy and culture from excessive foreign interference.

Despite the fact that many of us dream of a second home in picturesque Alpine landscapes, the reality is that access to real estate in Switzerland for foreigners comes with many restrictions. I realized that the Swiss authorities closely monitor the market, introducingquotasandnormsto preserve the authenticity and individuality of the country. This makes purchasing real estate a real challenge for those who are not Swiss citizens.

Moreover, the restrictions on the duration of residence and sales also add their own complexities. Additionally, it should not be forgotten that foreigners' preferences are often divided between winter and summer resorts, which affects supply and demand.

Attractive regions for purchasing

However, observing the trends, I came to the conclusion thatcanton of VaudandTicinoUltimately, they remain the most attractive options for affluent buyers. These regions offer not only top-notch ski resorts but also a comfortable climate during the summer months, making them ideal for vacations. The opportunity to enjoy the picturesque nature and the splendid evenings of Alpine summer attracts many people, and this undoubtedly enriches the local culture.

Conclusions

Thus, any plans to purchase real estate in Switzerland require an understanding of these nuances. I hope this article helps readers gain a clear understanding of what it means to become a property owner in Switzerland and what obstacles may arise along the way.

This country is undoubtedly a gem of Europe, and the desire to have a place here is quite justified. However, it is important to remember the challenges associated with this process and to approach it thoughtfully and with proper preparation.