Buying a house in Switzerland : Understanding Swiss property types
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:
Holiday properties – high mountains
Mountain villages like Zermatt, St Mauritz and Cloisters are famous for their ski runs, but are also popular with hikers, mountain bikers and honeymooners in the summer. The ski season typically lasts from December to March, with hikers and summer visitors arriving from the Easter holidays onwards. November and October are the slowest months, when workers recuperate before the Christmas season brings new crowds.
Issues to consider when buying a high mountain property include:
Holiday properties – city centres
Switzerland is a popular tourist destination all year round, and easy to access by road, rail or airplane. None of the cities are huge, so it's often possible to buy a property on the outskirts, in a charming village square or by the water and still attract tourists. Zurich is the largest city, with just under 400,000 people in the urban centre.
The country's largest cities, including Zurich, Bern, Basel and Geneva are known for their high-end shopping, beautiful old buildings and charming cafés and restaurants. However, they are also typically major financial, commercial or industrial centres and property prices are therefore high.
There are many smaller cities that are equally attractive, many of which are very popular tourist destinations. Interlaken, Montreux, Lucerne and Lugano are all popular with tourists from around the world. Properties beside Switzerland's many lakes and in the lower valleys are popular with tourists looking for a relaxing retreat or a chance to be closer to nature.
Primary residence
If you're working in Switzerland, then where your job is will dictate the location of your home to a certain extent. Switzerland has an excellent rail and bus network which runs with to-the-minute accuracy even in winter snow. This allows people working in expensive cities such as Geneva and Zurich to commute from much further away – sometimes even from another city. If you're looking for an affordable property, follow the train lines out where you'll find pretty villages with charming old farm houses and modern family homes.
Residential investment properties
Around 60% of Swiss residents rent rather than own their home. A growing population has led to high demand and high occupancy rates, making property a strong investment. Rents are high, particularly in larger cities, but this reflects high real estate costs and high service costs. The whole country is clean, safe, and accessible. As the country is small, even remote villages are typically within 3 hours drive of a major airport, such as Geneva, Zurich or Milan, and are easy to access by car or public transport. As a result, there are no places in Switzerland that can truly be considered cheap. Areas with lower wages tend to protect local inhabitants by increasing the restrictions on overseas buyers.
Commercial properties
There are no restrictions on the purchase of commercial properties (that is to say properties used solely as business premises, such as a shop or factory, with no residential element) by international buyers. As a result, this is a very popular investment for non-resident foreigners. It is possible to purchase a commercial property and then rent it out.
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:
Holiday properties – high mountains
Mountain villages like Zermatt, St Mauritz and Cloisters are famous for their ski runs, but are also popular with hikers, mountain bikers and honeymooners in the summer. The ski season typically lasts from December to March, with hikers and summer visitors arriving from the Easter holidays onwards. November and October are the slowest months, when workers recuperate before the Christmas season brings new crowds.
Issues to consider when buying a high mountain property include:
- How well established is the resort?
- How expensive is property?
- Is the local council encouraging or discouraging foreign investment?
- What charges apply to holiday properties in this village?
- How many summer activities are available?
Holiday properties – city centres
Switzerland is a popular tourist destination all year round, and easy to access by road, rail or airplane. None of the cities are huge, so it's often possible to buy a property on the outskirts, in a charming village square or by the water and still attract tourists. Zurich is the largest city, with just under 400,000 people in the urban centre.
The country's largest cities, including Zurich, Bern, Basel and Geneva are known for their high-end shopping, beautiful old buildings and charming cafés and restaurants. However, they are also typically major financial, commercial or industrial centres and property prices are therefore high.
There are many smaller cities that are equally attractive, many of which are very popular tourist destinations. Interlaken, Montreux, Lucerne and Lugano are all popular with tourists from around the world. Properties beside Switzerland's many lakes and in the lower valleys are popular with tourists looking for a relaxing retreat or a chance to be closer to nature.
Primary residence
If you're working in Switzerland, then where your job is will dictate the location of your home to a certain extent. Switzerland has an excellent rail and bus network which runs with to-the-minute accuracy even in winter snow. This allows people working in expensive cities such as Geneva and Zurich to commute from much further away – sometimes even from another city. If you're looking for an affordable property, follow the train lines out where you'll find pretty villages with charming old farm houses and modern family homes.
Residential investment properties
Around 60% of Swiss residents rent rather than own their home. A growing population has led to high demand and high occupancy rates, making property a strong investment. Rents are high, particularly in larger cities, but this reflects high real estate costs and high service costs. The whole country is clean, safe, and accessible. As the country is small, even remote villages are typically within 3 hours drive of a major airport, such as Geneva, Zurich or Milan, and are easy to access by car or public transport. As a result, there are no places in Switzerland that can truly be considered cheap. Areas with lower wages tend to protect local inhabitants by increasing the restrictions on overseas buyers.
Commercial properties
There are no restrictions on the purchase of commercial properties (that is to say properties used solely as business premises, such as a shop or factory, with no residential element) by international buyers. As a result, this is a very popular investment for non-resident foreigners. It is possible to purchase a commercial property and then rent it out.
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.
Misunderstanding the tax situation can turn a sound investment into a failing one. As taxes in Switzerland are issued by national, regional and local
governments, it's particularly important to fully understand the tax implications of buying a property or making an investment in the country. Read on
to find out more.
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