Property search and purchasing assistance in Switzerland

Before we can start, however, it is probably most important to know who is allowed to buy a property in Switzerland. There are some important points that need to be considered. Here is a brief overview:

• Swiss citizens and persons with a permanent residence permit (C permit)
  Of course, buying a property is not a problem for Swiss citizens and does not require a permit. Persons in possession of a C residence permit may also purchase without restriction.  They may buy either for themselves, i.e. as their primary residence, but also, for example, apartment buildings.
• EU/EFTA citizens with a residence permit
  Citizens of EU or EFTA states (e.g. Germany, France, Italy, Norway) with a residence permit (B permit) may purchase real estate for their own use, e.g. a house or apartment in which they live themselves. They may also buy property for independent professional activities (e.g. for their own business). If they live in Switzerland permanently (C permit) or work in Switzerland long-term, they can also buy real estate for investment purposes.
• Third-country nationals (non-EU/EFTA)
  Third-country nationals (e.g. people from the USA, Russia or China) who have a C permit can buy real estate in a similar way to Swiss citizens.
  Third-country nationals with a B permit may generally only purchase real estate for their own use (e.g. a house or apartment in which they live themselves). However, they are not allowed to buy real estate for investment purposes or as vacation homes. Unless they receive a permit to do so

The so-called Lex Koller law severely restricts the purchase of real estate by persons who are not resident in Switzerland. In principle, they are not allowed to acquire real estate, but there are exceptions for vacation properties in certain tourist areas. In principle, permits are issued by the respective cantons.

We offer our support to ensure that you are allowed to buy the property you wish to purchase. Where necessary, we bring you together with our specialists who can provide detailed information.

• Large cities such as Zurich, Geneva or Basel are among the places where purchase prices are highest, while rural areas and smaller towns often offer cheaper options.
• As a rule, the bank requires the buyer to contribute at least 20% of the purchase price as equity. At least 10% of this must come from the buyer’s own funds (not pension fund money).
• Swiss banks offer various mortgage models, such as fixed-rate mortgages with fixed interest rates for a fixed term or variable-rate mortgages where the interest rates can be adjusted.
• The bank checks the affordability of the loan, whereby the monthly costs (interest, amortization and ancillary costs) may not generally exceed 33% of the buyer’s gross income

A preliminary contract or reservation agreement is often signed before the actual purchase contract is concluded.

It goes without saying that you should thoroughly inspect the property beforehand. This includes inspecting the land register to check mortgages, liens or other encumbrances.

The final purchase contract is signed at the notary’s office. After signing and payment of the purchase price, the buyer is entered in the land register as the new owner. In principle, a notary should be selected who is located in the same canton as the property to be purchased.

In addition to the purchase price, you should also consider the following fees/costs: notary and land registry fees, which are usually between 0.2% and 0.5% of the purchase price, as well as maintenance costs (including insurance, taxes and maintenance).  Also remember that mortgage interest and some maintenance costs are tax deductible.