Step-by-step guide to buying 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:
Step-by-step guide to buying property in Switzerland
While the country is famous for its red tape, the process of buying a property in Switzerland is relatively straightforward. The property market tends to move slowly, with purchases typically taking around 3 months (not including permit applications) and houses often taking a year to sell. This can be an advantage for international buyers, as the slower pace gives you more chance to do your due diligence and visit the property and the area. Typically, buying a property will follow the following steps:
Online property portals are increasingly prominent, particularly for residential property. You may also choose to use an estate agent as a search agent. Estate agents typically cater to a quite narrow geographical or market area, so don't be afraid to discuss your needs with several agents. Agents are typically paid by the seller, so be wary of any who demand an upfront fee unless they are providing an additional service.
Arranging a mortgage
Before making an offer, you should consult mortgage providers and ensure that it's possible to get the funding you require. Mortgage brokers are rare in Switzerland, so your best bet is to go straight to the lender. Major banks like UBS and Credit Suisse typically have staff who speak English and often other languages too. Each canton has its own cantonal bank. These are intended only for local residents, so don't expect to receive a mortgage from the cantonal bank of Zurich if you're buying in Geneva. Find out more about arranging a mortgage in Switzerland .
Negotiating a price
Negotiations will usually take place via an estate agent. Unless you've specifically hired an agent to find you a property, assume that the estate agent is working for and paid by the seller, as this is the case in most cantons. As a general rule, the buyer pays all other costs. However, these are not fixed, instead being based on local tradition, and you may be able to include costs in your price negotiation.
Structural surveys are not common in Switzerland, and home owners may be surprised or even offended if you request one. However, as the seller is not required to notify you of problems with the property, a survey may be a worthwhile investment. Chartered Surveyors and architects can both be found in Switzerland, and will perform this role for a fee. A specific survey may be required by your mortgage provider.
Signing an agreement to buy
This agreement is not the final sale, it is simply an agreement that states that you will buy the property under certain conditions. If you are an international buyer, you should ensure that there is a get out clause which releases you if you cannot obtain a permit to buy or a mortgage, if you require one. Like the final sale contract, this must be created by and signed in the presence of a notary.
At this stage, you may have to pay a deposit to the buyer. This may be held in escrow by the notary or the estate agent or paid directly to the buyer. The details of this should be in your agreement and have been worked out between you in advance.
As the buyer, you can expect to choose and pay the notary. Find out more about the documents you will need to present at each stage :
Applying for a permit to buy
Unless you are a Swiss citizen or are resident in Switzerland, you will need a permit in order to buy property in Switzerland. There are a limited number of permits available each year and an application typically takes 8-12 weeks. Find out the details in our article on permission to buy property in Switzerland :
Finalising your mortgage
Once the agreement to buy and the permit to buy are arranged, you can finalise your mortgage. Your mortgage lender may be willing to check through the contract of sale for you, but you should also have your own representative check it, particularly if you don't speak the language fluently. Find out more about arranging a mortgage in Switzerland :
Signing the contract of sale
Like the agreement to buy, the contract of sale must, in most cantons, be written by and signed in the presence of a notary. As a result it is usually fairly standard. Contracts will be in one of the Swiss languages, typically German, French or Italian. The notary will charge for their services. These may include registering the property and paying the property transfer tax. The contracts and the mortgage will also have to be registered, for which there will be a fee.
Taking ownership of the property
In Switzerland, the property is yours from the moment the contract is signed, unless you've agreed otherwise and stated this in the contract. This means that the contract should include a handing over of keys and documents. Ensure that you get a full budget of documentation about the property, typically recording work done since it was built, insurance information, building permits and any other relevant information. As a general rule, any document can be replaced but there is inevitably a charge for doing so.
Paying taxes
If you buy a property in Switzerland, you will almost certainly have to pay tax in Switzerland, even if you do not rent it out. Taxes fall into the following three categories:
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:
Step-by-step guide to buying property in Switzerland
While the country is famous for its red tape, the process of buying a property in Switzerland is relatively straightforward. The property market tends to move slowly, with purchases typically taking around 3 months (not including permit applications) and houses often taking a year to sell. This can be an advantage for international buyers, as the slower pace gives you more chance to do your due diligence and visit the property and the area. Typically, buying a property will follow the following steps:
- Finding a property
- Arranging a mortgage (if necessary)
- Negotiating a price
- Signing an agreement to buy
- Applying for a permit to buy (if necessary)
- Finalising your mortgage (if necessary)
- Signing the contract of sale
- Taking ownership of the property
- Paying taxes
Online property portals are increasingly prominent, particularly for residential property. You may also choose to use an estate agent as a search agent. Estate agents typically cater to a quite narrow geographical or market area, so don't be afraid to discuss your needs with several agents. Agents are typically paid by the seller, so be wary of any who demand an upfront fee unless they are providing an additional service.
Arranging a mortgage
Before making an offer, you should consult mortgage providers and ensure that it's possible to get the funding you require. Mortgage brokers are rare in Switzerland, so your best bet is to go straight to the lender. Major banks like UBS and Credit Suisse typically have staff who speak English and often other languages too. Each canton has its own cantonal bank. These are intended only for local residents, so don't expect to receive a mortgage from the cantonal bank of Zurich if you're buying in Geneva. Find out more about arranging a mortgage in Switzerland .
Negotiating a price
Negotiations will usually take place via an estate agent. Unless you've specifically hired an agent to find you a property, assume that the estate agent is working for and paid by the seller, as this is the case in most cantons. As a general rule, the buyer pays all other costs. However, these are not fixed, instead being based on local tradition, and you may be able to include costs in your price negotiation.
Structural surveys are not common in Switzerland, and home owners may be surprised or even offended if you request one. However, as the seller is not required to notify you of problems with the property, a survey may be a worthwhile investment. Chartered Surveyors and architects can both be found in Switzerland, and will perform this role for a fee. A specific survey may be required by your mortgage provider.
Signing an agreement to buy
This agreement is not the final sale, it is simply an agreement that states that you will buy the property under certain conditions. If you are an international buyer, you should ensure that there is a get out clause which releases you if you cannot obtain a permit to buy or a mortgage, if you require one. Like the final sale contract, this must be created by and signed in the presence of a notary.
At this stage, you may have to pay a deposit to the buyer. This may be held in escrow by the notary or the estate agent or paid directly to the buyer. The details of this should be in your agreement and have been worked out between you in advance.
As the buyer, you can expect to choose and pay the notary. Find out more about the documents you will need to present at each stage :
Applying for a permit to buy
Unless you are a Swiss citizen or are resident in Switzerland, you will need a permit in order to buy property in Switzerland. There are a limited number of permits available each year and an application typically takes 8-12 weeks. Find out the details in our article on permission to buy property in Switzerland :
Finalising your mortgage
Once the agreement to buy and the permit to buy are arranged, you can finalise your mortgage. Your mortgage lender may be willing to check through the contract of sale for you, but you should also have your own representative check it, particularly if you don't speak the language fluently. Find out more about arranging a mortgage in Switzerland :
Signing the contract of sale
Like the agreement to buy, the contract of sale must, in most cantons, be written by and signed in the presence of a notary. As a result it is usually fairly standard. Contracts will be in one of the Swiss languages, typically German, French or Italian. The notary will charge for their services. These may include registering the property and paying the property transfer tax. The contracts and the mortgage will also have to be registered, for which there will be a fee.
Taking ownership of the property
In Switzerland, the property is yours from the moment the contract is signed, unless you've agreed otherwise and stated this in the contract. This means that the contract should include a handing over of keys and documents. Ensure that you get a full budget of documentation about the property, typically recording work done since it was built, insurance information, building permits and any other relevant information. As a general rule, any document can be replaced but there is inevitably a charge for doing so.
Paying taxes
If you buy a property in Switzerland, you will almost certainly have to pay tax in Switzerland, even if you do not rent it out. Taxes fall into the following three categories:
- Taxes due when the property is purchased, including property transfer tax
- Ongoing taxes, including an annual property tax
- Taxes due when the property is sold, including capital gains tax
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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