Buying Property in Switzerland as a Foreigner – What You Need to Know
Switzerland is a highly attractive destination for international buyers thanks to its stability, quality of life, and strong real estate market. However, buying property here as a foreigner is subject to specific rules and restrictions that every buyer should understand before making a purchase.
Who Can Buy Property in Switzerland?
- Swiss citizens and residents: Free to buy without restrictions.
- Foreigners with permanent residence (Permit C): Treated like Swiss citizens, with no limitations.
- Foreigners with residence permits (Permit B, EU/EFTA nationals): May buy a primary residence without authorization, but restrictions may apply for holiday homes or investment properties.
- Non-resident foreigners: Can buy property, but only under certain conditions, usually requiring authorization.
The “Lex Koller” Law
The purchase of real estate by foreigners is mainly governed by the Lex Koller, which restricts acquisitions by non-residents. Key points:
- Investment properties (e.g., rental apartments, office buildings) are generally off-limits.
- Holiday homes may be purchased, but there are strict quotas, size limits (typically max. 200 m² of living space, 1,000 m² of land), and they must be located in designated tourist areas.
- Primary residences are permitted if the buyer lives in Switzerland and uses it as their main home.
Financing & Taxes
- Swiss banks typically require a minimum 20–25% down payment, and foreigners may face stricter conditions.
- Ongoing costs include cantonal and communal property taxes, wealth tax, and imputed rental value (a notional income tax on owner-occupied homes).
- Capital gains and inheritance rules vary by canton.
Usage Restrictions
- A foreign-owned holiday home cannot usually be rented out long-term, though short-term holiday rentals may be permitted depending on the canton.
- Properties purchased under Lex Koller authorization cannot be converted into investment properties.
Property Transfer & Registration
- All property transactions must be notarized and registered in the Swiss Land Registry.
- The notary ensures compliance with Lex Koller rules before the sale is finalized.
Regional Differences
- Some cantons (e.g., Graubünden, Valais, Vaud, Ticino) are more flexible with holiday home purchases.
- Urban areas like Geneva, Zurich, or Basel are more restrictive for non-resident buyers.
In Summary
Foreigners can buy property in Switzerland, but opportunities are mostly limited to primary residences for residents and holiday homes in approved areas. Investment properties and large-scale acquisitions are generally prohibited. Each case depends on residency status, the canton, and the type of property, so professional guidance is essential.