RESTRICTIONS FOR THE ACQUISITION OF REAL RESTATE IN SWITZERLAND, 2. color: #666; } The Swiss real estate market is one of the most solid worldwide; nevertheless, it is not as easy as elsewhere to buy a property in Switzerland. margin: 60px 0; text-align: right; This page has been compiled as a guide for potential purchasers of property in Switzerland. In canton Valais they total around 3% of the purchase price, in canton Vaud they are around 5%. For non-Swiss citizens without any gainful activity in Switzerland, a large number of cantons provide for a taxation according to the rental value (typically multiplying the annual rental value by 7) of the Swiss property as well as the living costs and does not consider a client’s worldwide income. letter of intent or a preliminary purchase agreement between the seller and the buyer can be entered into in a first step. With the exception of Zürich and Schwyz, all cantons levy a transfer tax on the purchase price or the tax value of the property. Our qualified and recognised partners can help and guide you through the following fields: © 2019 Naef Holding S.A The choice of the structure and its jurisdiction depends mainly on the residence of the beneficial owner, the financing and the time frame of the investment. The typical responsibilities of the notary include: The purchase process may may be finalised within a very short period of time in Switzerland provided all necessary requirements are fulfilled. If you are looking for your dream property in Switzerland, you have come to the right place! I can revoke my consent at any time for the future. Besides, we don’t know which data Google processes and for which purpose. This property may be used for an activity or rented. m.), 1000 sq. Use the chance to invest in US-based low-fee ETFs. Switzerland is known to be a safe haven to many people. The cantons of Geneva or Zurich, for example, do not allow a non-resident citizen to buy a residential property (house, apartment or … word-break: break-word; A person resident abroad may purchase commercial property in Switzerland without any restriction. } As taxes are levied on a federal, cantonal and communal level, the tax rates vary in each commune and are progressive. This is supported by the very high quality of life that Switzerland has to offer with low crime rates, outstanding construction, superior education and excellent medical facilities. Most cantons also favour land register rights at a few-tenths of 1 %, which can go up to 1 % in certain exceptional circumstances. m. maximum of floor space (in certain cases this limit can be increased up to 250 sq. Under certain circumstances, you will need a permit. Property purchase is allowed for B Permit holders but only or residential purposes, not for rent or sale. Is it your dream to enjoy your holidays hiking on one of its well-known trails with a view of the Jungfraujoch? In some cantons, the solicitor invoices his services by the hour, whereas in others the fees are calculated as a percentage equivalent to a few-tenths of 1 % of the purchase price. For luxury real estate and holiday homes, mortgage financing up to 60% is usually available. color: #444; font-weight: 100; You are not permitted to buy a second property in the name of your husband/wife but if you have children over the age of 20 they may purchase properties in their own name. text-align: right; Traditionally, all real estate agency fees are paid by the seller unless agreed in advance or if a buyer signs a search mandate to provide a bespoke search service. } Foreigners are obliged to apply for a permit to buy a holiday home. Email: selda.gungor@naefprestige-knightfrank.ch. Foreign private investors are able to obtain a Swiss loan. Clients consider buying real estate in Switzerland for numerous reasons: lifestyle, quality of life, holiday purposes, a permanent home, education, relocation for business reasons, investment and security. max-width: 720px; Likewise, the purchaser may purchase in their own name or through a Swiss or foreign legal structure. In some cantons a sale is only allowed after a minimum holding period (typically 5 years). The procedure to acquire, hold and sell real estate and its taxation are primarily regulated by cantonal and communal laws. width: 33%; Please note that the process of how to buy a property varies regionally. margin: 0 auto; For foreign residents living in Switzerland, the Federal Law on Property Purchases by Foreigners (LFAIE), signed on December 16, 1983, is a law authorizing foreigner resident in Switzerland to purchase property on the territory, under the sole condition that residents stay in Switzerland for more than five years (and thus … We are pleased to offer a range of property in Switzerland. In addition to the worldwide income, a deemed rental value of the Swiss real estate will be taxed as income in Switzerland. All of the various reasons for the purchase of real estate have very different consequences, not only from a tax and legal point of view, but also regarding succession, financial structuring and asset allocation. 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