Buying property in Switzerland

Who can buy in Switzerland

Buying property in Switzerland can be complex for foreign nationals due to various restrictions.

The Lex Koller law limits non-residents to purchasing residential property in designated tourist regions, and you’ll need to obtain a permit to do so. In these tourist zones, homes can’t exceed 200 sqm of official living space, excluding balconies and basements, and land plots must be less than 1,000 sqm.

EU nationals living in Switzerland with a B or C permit can purchase property without restrictions. Non-EU nationals with a C permit can also buy property without restrictions.

• A B permit is an annual residency permit that must be renewed and is typically linked to specific employment. If you buy property with this permit, it must be your primary residence and can’t be leased for investment purposes.
• A C permit offers permanent residence that isn’t tied to specific employment and is a path to citizenship. With this permit, you can buy property including holiday and investment properties.

The buying process in Switzerland

• Once you’ve found a property you wish to purchase, you’ll make an offer to the estate agent.
• If the offer is accepted, both parties need to sign a legally binding reservation contract, and you’ll pay a 20% deposit to be held in escrow by a notary.
• If you require a mortgage, a mortgage pre-qualification questionnaire is completed and submitted to the lender.
• The notary will prepare the deed of sale, which must be signed by both parties to complete the purchase.
• The property is then officially transferred over, and the change of ownership is registered with the land registry.

Financing your property in Switzerland

When purchasing property in Switzerland, if you need a mortgage, having an agreement in principle in place shows how much you can borrow from a lender. This positions you strongly as a buyer, improving your chances of having your offer accepted.

Some sellers won’t accept a mortgage clause within the purchase contract, so speaking to a mortgage broker early is essential so they can include a mortgage clause in the agreement in principle.

In some cases, it’s possible to borrow 100% of the property’s purchase price by combining a mortgage with a Lombard loan.

Fees and taxes

• Property transfer tax varies by canton from 0.2% to 3.3%.
• Land registry fees also vary by canton, ranging from 0.15% to 0.5%.
• Notary fees range from 0.1% to 1% of the purchase price, again depending on the canton.