Switzerland
STEPS
Check Eligibility
Determine the Budget
Find a Property
View the Property
Make an Offer
Complete Legal Formalities
Register the Property
Move In
- Non-Residents: Foreigners can buy property in Switzerland, but there are restrictions based on the canton (region). Non-residents are generally restricted to buying property for personal use, and it is common for foreigners to require approval from the local authorities to purchase property.
- Financing: Non-residents may face challenges in obtaining financing from Swiss banks, and they often require a larger down payment (at least 20-30%) compared to Swiss residents.
- Budgeting: Determine how much you can afford, taking into account the property cost, taxes, registration fees, notary fees, and other related expenses.
- Mortgage: Non-residents can apply for mortgages, but Swiss banks typically require a higher down payment (20-30%). The loan-to-value ratio may also be lower than for Swiss residents.
- Online Search: Use property websites like Homegate.ch, ImmoScout24.ch, and Comparis.ch to search for available properties. You can filter properties by location, price, and size.
- Real Estate Agents: Consider working with a local real estate agent (Immobilienmakler) who can assist with property searches, negotiations, and navigating local regulations.
- Inspections: It’s important to arrange for a thorough property inspection to assess the condition of the property, including its structure, electrical systems, and plumbing.
- Visiting the Property: If you cannot visit the property in person, you can request a virtual tour or have a local representative view the property for you.
- Bidding: Once you find a suitable property, you can make an offer. In Switzerland, the seller may choose to negotiate or accept the price based on market conditions.
- Contract: If your offer is accepted, you will typically sign a preliminary agreement (Vorvertrag) and pay a deposit of around 10% of the purchase price.
- Notary Role: In Switzerland, the transaction must be notarized by a notary public (Notar). The notary ensures the sale complies with Swiss law and verifies all necessary documents.
- Taxes and Fees: You will need to pay property transfer taxes (usually 1%-3% depending on the canton), notary fees, and registration fees, which vary by canton.
- Land Registry: Once the sale is finalized, the property must be registered with the Swiss Land Registry (Grundbuch). This ensures the property is legally transferred to the buyer's name.
- Insurance: Property insurance (Hausversicherung) is strongly recommended to protect against risks such as fire, damage, or theft.
- Once the legal process is completed and the property is officially transferred to your name, you can move into your new home in Switzerland.
ADDITIONAL CONSIDERATIONS
- Legal Assistance: While the process is generally straightforward, it is advised to hire a lawyer or legal expert who specializes in Swiss property law to assist with the legalities.
- Cantonal Regulations: Keep in mind that property regulations vary from canton to canton, and some cantons have stricter rules for foreign buyers.
ADDITIONAL NOTICES
- Notary Role: A notary is essential to the transaction, as they ensure the legality of the contract and ensure the transaction follows Swiss law.
- Mortgage Financing: Non-residents may face stricter conditions when applying for mortgages in Switzerland. Banks often require a larger down payment (20%-30%) and a lower loan-to-value ratio compared to local buyers.
- Property Purchase Restrictions: Some cantons in Switzerland impose restrictions on foreign property ownership, especially in rural areas. It is essential to check the specific canton’s rules before purchasing.
In Switzerland, real estate taxes are determined by the cantons and municipalities, so they can vary depending on the location. The key types of taxes related to real estate include:
Property Ownership Tax
Wealth Tax on Real Estate: Property is considered part of an individual's wealth and is subject to wealth tax at both cantonal and municipal levels.
The tax rate is progressive and depends on the property value.
Real Estate Transfer Tax
This tax is levied when property changes ownership (e.g., during a sale).
Rates vary by canton but typically range from 1% to 3% of the transaction value.
Municipal Tax
Local property taxes and additional levies may apply depending on the municipality.
Capital Gains Tax on Real Estate
Capital gains tax applies when property is sold at a profit, though exemptions may apply for primary residences.
Rates depend on ownership duration and canton.
Income Tax on Rental Income
Rental income is subject to both federal and cantonal income taxes.
Deductions for property-related expenses are typically allowed.
Note:
Tax rates and regulations vary by canton, so it’s recommended to check with local authorities or consult a tax professional for accurate information.
- Official
- Swiss Confederation
- CIOC
- SUI
- Subregion
- Western Europe
- Borders
- AUTFRAITALIEDEU
- Capital
- Bern
- Area
- 41 284 km²
- Population
- 8 655 000
- Timezones
-
UTC+01:00
- Phone
- +41
- Currencies
-
Swiss franc (CHF Fr.)