Buying real estate in Switzerland when you are a foreigner: how to do it?
Do you dream of becoming the owner of a villa, an apartment, a chalet etc in Switzerland?
But you are not of Swiss nationality? It is possible, in certain cases, to buy real estate in Switzerland as a foreigner.
Do you meet the criteria?
One needs to know that the conditions differ depending on your nationality, whether a legal entity or natural person, your residency permit, the type of property (primary or secondary housing, business…) and the region.
Quick overview :
You want to buy housing; you are a natural person (this differs if the purchase in made by a legal entity
1. You reside in Switzerland :
a. You are a national of a member country of EU/EFTA, or of the United Kingdom of Great Britain and North Ireland
Your rights are the same as if you were Swiss. You do not need authorization to buy a housing or land.
b. You are not a national of a member country of EU/EFTA, or of the United Kingdom of Great Britain and North Ireland
– You have a valid C residence permit: you benefit from the same rights as the Swiss for the purchase of one or more real estate properties and therefore do not need authorization.
– You have a valid B residence permit (or equivalent):
You do not need authorization to buy your home (including land) if:
- The home will be your principal home (you must not rent it)
- The land you buy is intended to build your principal home on, and the works begin within the first year following your purchase.
But authorization is required to purchase:
- A secondary residence (cannot be rented out)
- Holiday accommodation (which can be rented temporarily)
- Units in an Aparthotel
2. You do not reside in Switzerland :
a. You are a border worker
You can purchase a secondary home without authorization in the region of your work if you have a valid G permit and are a national of an EU/EFTA country. Important: as long as you work in the region as a cross-border worker, you cannot let this accommodation.
b. Other foreigners domiciled abroad
If you are not a cross-border resident, then you are subject to the authorization regime.
Secondary home: You can only buy one only in an area that you have close and protected bonds with. The cantons interpret this legal requirement more or less strictly.
The law specifies: Yes, a foreigner with his/her domicile outside Switzerland can acquire a secondary home in a place where he maintains extremely close relationships worthy of protection. Examples: regular relationships that the purchaser must maintain to safeguard overriding economic, scientific, cultural, or other important interests. However, No: kinship or alliance with people residing in Switzerland or vacations stays, cures, studies or other temporary stays do not in themselves constitute close relationships worthy of protection according to the Swiss Confederation (OAIE, ch. 1, art.6).
Holiday accommodation or a unit in an aparthotel: yes, it is possible to acquire one per family under certain conditions, which vary from one canton to another. The living space cannot in principal exceed 200msq and the land is limited to 1000msq. The Swiss Confederation has set a quota of maximum 1500 sales authorizations per year, distributed between the various cantons having defined “tourist zones” for this purpose. Geneva does not offer this possibility.
5. You want to purchase a building for professional use
These are buildings that are intended for 100% professional, commercial or industrial activity. In this case, there are no restrictions: all categories of foreigners can acquire without authorization.
I need authorization to acquire real estate, who should I contact?
To purchase an authorization request must be submitted to the competent authority of the canton where the property is located. The conditions of the authorization vary depending on the canton and the type of real estate. The authorization is issued for a specific reason (the real estate cannot be used for other purposes) and it is valid for 3 years.
The acquisition of real estate is governed by the Swiss Confederation through the Federal Law on Acquisition of Real Estate by Persons Abroad (the LFAIE, also known under the names Lex Kohler or Lex Friedrich). This law provides that it is the cantons which issue the authorization to purchase.
Your real estate broker and your notary will support you in these procedures.
The subject is complex and may require clarification depending on your personal situation. Contact us for any further information or questions.
To note:
- Buying a house, apartment or land in Switzerland does not give you the right to a residence permit.
- If you are an international civil servant, benefiting from a legitimation card issued by the Federal Department of Foreign Affairs (DFAE), then you are assimilated to one of the preceding categories depending on your status, your country of origin and number of years spent in Switzerland.
- The source of funds in important: the financing of the purchase must not come predominantly form abroad (no more than 80%)
- Becoming an owner through an inheritance even though you are a foreigner: only legal heirs within the meaning of Swiss law can become unrestricted owners of the inherited real estate object, regardless of their nationality and place of residence.
Our advice
Your real estate agency, Désormière & Vanhalst, knows the rules of acquisition and works in partnership with notaries and lawyers specialized in the area. Your broker will accompany you step-by-step until you are handed the keys of your new home.
Call us to find the real estate of your dreams by entrusting us with a search mandate.
