How To Buy Swiss Real Estate

Buying Swiss real estate is a tricky subject. With a wide variety of regulations governing the buying process, navigating the ins and outs of the special rules for non-residents who want to buy property in Switzerland can be impossibly difficult.

With a bit of luck and attentiveness however, you might just be able to ford your way through the murky depths of learning how to buy real estate in Switzerland.

Some laws and prescriptions are not the same in every canton, therefore, I recommend asking the services of a specialized lawyer.

Depending on your budget they can handle the complete buying process for you once you have explained your wishes and situation.

Swiss property is a hot-ticket item. Traditionally, many foreign nationals have displayed an avid love of Swiss vacation properties situated in the heart of well-traveled tourist areas.

The reasons you might want to buy land or housing are myriad, and include just wanting a nice getaway, procuring some investment properties, or establishing residency.

Swiss residency can be established by demonstrating that you can live legally there without being employed, and this process is greatly expedited when you have purchased property.

Why Do I Want Swiss Residency?

Swiss residency can be established through a standardized application process at your local Swiss Cantonal (regional) Migration/Foreigners Department. Successfully pass your application, and you'll be granted the title "person abroad", and given one of five types of term-based residency permits.

Now that you have your permit, you are in line with the "Lex Koller". This is name of a sometimes controversial 1983 Swiss law, created by a former Minister of Justice and Police, one which restricts what kind of property you can purchase based on, you guessed it, your Swiss residency permit.

Lex Koller: Special Rules For Non-Residents

First is that "persons abroad" and legal entities both require a permit for the acquisition of Swiss real estate.

If you are not a European Union (EU) or European Free Trade Association (EFTA) national, your purchases are restricted to holiday homes in most cantons, additionally, only a certain number of such purchases are permitted yearly.

Non-resident foreigners also have restrictions on how much time they can spend using vacation homes as primary domiciles.

Wrapping Up: The Purchasing Process

To purchase your Swiss property, your canton will provide you with an appointment with the notary public who verifies your ownership, but only after you complete all the requirements. You should have already arranged your sale and its financing with your agent, as well as received your Swiss residency permit.

Generally, all of your real estate purchases will require permits for legal validity. Although high quality Swiss real estate is expensive, foreigners often receive mortgages for 60%-80% of the bank-appraised value or sale price of the house they wish to purchase.

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