How to buy property in Switzerland
Buying property in Switzerland is often tricky for foreign nationals due to various laws and restrictions. The Lex Koller law dictates which permits are required for overseas property buyers, and states in which areas non-Swiss purchasers can acquire property. These designated Holiday Zones tend to be within the country’s ski resorts, as well as Montreux and Lake Lugano.
With all these areas, the maximum size allowed is 200 square metres of official living space per named individual, which excludes balconies or basements. Some allowances can be made if a buyer’s children are to be educated in Switzerland, or if the purchase is made through a Swiss-based (and majority Swiss-owned) company. A local lawyer negotiates this on the buyer’s behalf. Further laws surrounding ownership, taxation and the amount of properties in an area that can be owned as secondary residences (known as Lex Webber) are found in some cantons and communes.
Working closely with the legal and tax advisory firm Transforma Consulting, we’ve produced a detailed guide to buying property in Switzerland that provides an introduction to this complicated legal system and a summary of taxes triggered by the purchase of real estate. If you have any further questions, contact our International Property team and we’ll help you navigate the Swiss property world with confidence.
Financing your property purchase in Switzerland
When looking to buy a property in Switzerland, it helps to have an Agreement in Principle – an agreement that sets out how much you are able to borrow from a lender. This can have a significant bearing on the acceptance of an offer and puts you in a strong position as a prospective buyer.
Some sellers won’t accept a mortgage clause within the purchase contract. In this scenario, speaking to a mortgage broker like Traverse International Finance, our chosen partner for mortgages in Switzerland, early on means they can include a mortgage clause within the Agreement in Principle.
In some instances, it’s possible to borrow up to 100% of the property purchase price using a combination of a mortgage and a Lombard loan. Get in touch with Traverse to discuss the financing options available to you.