Can foreigners buy property in Switzerland
Elizabeth Bagwell, Saturday, 16 November 2013
This article is part of a series of 10 articles about buying property in Switzerland. The other articles in the series cover the following topics:
Switzerland is a beautiful country with a stable economy and a good return on property investment, making it an attractive market for international buyers. However, restrictions on foreign property investment and high prices can make buying in Switzerland tricky. This guide will take you through the different options available for individuals considering buying a primary residence or holiday home in Switzerland.
Buying a commercial property for use as part of your business or to rent out does not require a permit, so this option is not covered below.
Can foreigners buy property in Switzerland?
You will probably require a property purchase permit or a residency permit to buy property in Switzerland.
There are no restrictions if you are:
Should I get a property purchase permit or a resident's permit?
This depends largely on your intentions for the property. Switzerland is welcoming to wealthy foreigners, so if you intend to spend a significant amount of time at your property in Switzerland, it may be worth applying for a residency permit. Almost all Swiss cantons offer a fixed tax band for high net worth individuals who are not working and have no income in Switzerland. However, the minimum annual tax bill in these cases is CHF 150,000 (EUR 120,000) so it is only for the very wealthy.
Acquiring a work permit and a job can be significantly more difficult. If you are working, and interested in buying an investment property or a holiday home then a property purchase permit is more appropriate.
Permit to buy Swiss property
The number of permits issued is limited at a federal, cantonal (province) and communal (village or town) level. The federal government typically issues around 1,500 permits per year. This allocation is distributed throughout the 26 cantons. However, distribution is uneven as some cantons strongly discourage purchase by non-resident foreigners. Moreover, each individual commune (village, town or part of a city) can decide how many permits it wishes to issue. This means that if a village feels overwhelmed by foreign buyers or second home owners they can refuse to issue a permit.
Processing permit applications typically takes 8-12 weeks. The permit only applies to a particular property so you should usually have approached the seller, agreed a price, and signed the 'intention to buy' contract before making an application.
The permit may include further restrictions, such as limiting the size of the property that may be purchased, limiting rental occupancy (typically to 11 months of the year), mandating owner occupancy (typically 3 weeks per year for holiday homes), or even imposing sale conditions.
Will my application be accepted?
Each application is taken on a case-by-case basis. Your application is more likely to be accepted if:
Applications are approved or rejected by the commune (village or town) where you intend to buy, as well as at the federal level, so their attitude to foreign investment will be critical. Designated holiday resorts are likely to accept more foreign buyers than residential villages.
Recent legislation aims to reduce the amount of second homes or holiday properties in any one area to 20% or lower. This means that it will usually be easier to buy a property that is already used as a holiday property than a residential property which you intend to convert.
Buying without a permit: the Andermatt exception
With excellent skiing and stunning views, Andermatt has been a ski destination for a hundred years. Little known outside Switzerland, the town has gained international renown after being opened to foreign investors. It is now the one place in Switzerland where a non-resident, non-Swiss buyer can buy and sell Swiss property easily. The town is booming, with around 500 properties available for international buyers, and many more being built.
However, there is a catch. Recent redevelopment and building work has turned Andermatt into a luxury ski resort, and properties in the Andermatt Swiss Alps no permit area start at around CHF 1.3 million (EUR 1 million).
This article is part of a series of 10 articles about buying property in Switzerland. The other articles in the series cover the following topics:
Switzerland is a beautiful country with a stable economy and a good return on property investment, making it an attractive market for international buyers. However, restrictions on foreign property investment and high prices can make buying in Switzerland tricky. This guide will take you through the different options available for individuals considering buying a primary residence or holiday home in Switzerland.
Buying a commercial property for use as part of your business or to rent out does not require a permit, so this option is not covered below.
Can foreigners buy property in Switzerland?
You will probably require a property purchase permit or a residency permit to buy property in Switzerland.
There are no restrictions if you are:
- A Swiss citizen
- Resident with a Swiss C permit
- An EU or EFTA national who lives in Switzerland and has a work permit
- Buying commercial property (i.e. property used for commerce, such as factories, shops, warehouses. This does not include any property used as a residence.)
Should I get a property purchase permit or a resident's permit?
This depends largely on your intentions for the property. Switzerland is welcoming to wealthy foreigners, so if you intend to spend a significant amount of time at your property in Switzerland, it may be worth applying for a residency permit. Almost all Swiss cantons offer a fixed tax band for high net worth individuals who are not working and have no income in Switzerland. However, the minimum annual tax bill in these cases is CHF 150,000 (EUR 120,000) so it is only for the very wealthy.
Acquiring a work permit and a job can be significantly more difficult. If you are working, and interested in buying an investment property or a holiday home then a property purchase permit is more appropriate.
Permit to buy Swiss property
The number of permits issued is limited at a federal, cantonal (province) and communal (village or town) level. The federal government typically issues around 1,500 permits per year. This allocation is distributed throughout the 26 cantons. However, distribution is uneven as some cantons strongly discourage purchase by non-resident foreigners. Moreover, each individual commune (village, town or part of a city) can decide how many permits it wishes to issue. This means that if a village feels overwhelmed by foreign buyers or second home owners they can refuse to issue a permit.
Processing permit applications typically takes 8-12 weeks. The permit only applies to a particular property so you should usually have approached the seller, agreed a price, and signed the 'intention to buy' contract before making an application.
The permit may include further restrictions, such as limiting the size of the property that may be purchased, limiting rental occupancy (typically to 11 months of the year), mandating owner occupancy (typically 3 weeks per year for holiday homes), or even imposing sale conditions.
Will my application be accepted?
Each application is taken on a case-by-case basis. Your application is more likely to be accepted if:
- You apply early in the year
- The commune supports your application
- You are buying in a designated holiday area
- The property is already used or intended as a holiday property
Applications are approved or rejected by the commune (village or town) where you intend to buy, as well as at the federal level, so their attitude to foreign investment will be critical. Designated holiday resorts are likely to accept more foreign buyers than residential villages.
Recent legislation aims to reduce the amount of second homes or holiday properties in any one area to 20% or lower. This means that it will usually be easier to buy a property that is already used as a holiday property than a residential property which you intend to convert.
Buying without a permit: the Andermatt exception
With excellent skiing and stunning views, Andermatt has been a ski destination for a hundred years. Little known outside Switzerland, the town has gained international renown after being opened to foreign investors. It is now the one place in Switzerland where a non-resident, non-Swiss buyer can buy and sell Swiss property easily. The town is booming, with around 500 properties available for international buyers, and many more being built.
However, there is a catch. Recent redevelopment and building work has turned Andermatt into a luxury ski resort, and properties in the Andermatt Swiss Alps no permit area start at around CHF 1.3 million (EUR 1 million).
All types of property for sale in Switzerland by private sellers and estate agents. Find a your house or apartment near Zermatt, Davos, Ticino or near Geneva, Bern or the Valais.
Interested in buying a property in Switzerland, as a home or an investment? A beautiful country with high living standards and a strong economy,
Switzerland is an excellent place to buy property. Read on to get started and find out the things that every international buyer must know before
buying
property in Switzerland.
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