• Sell (237)
  • Rent (57)

Search

Budget

Budget

Number of rooms

Number of rooms

Surface

Surface

Garden

Garden

Search
V000119

BLOG

ComprareCasaSvizzera1

Buying a house in Switzerland: the definitive guide

Buying a house in Switzerland is a very interesting option not only for those who live in this country but also for the many cross-border commuters or for those who want to buy a property for holidays.

The Swiss real estate market is among the most solid in the world and the purchase of a house is a safe investment.  Prices are not subject to the  fluctuations that may occur in other countries in relation to the general economic trend.

So, find out how to buy a house in Switzerland and all the related costs. Consequently, you’ll have a complete picture of the potential outlay and avoiding unwanted surprises.

Buying a home in Switzerland, a safe investment

Why buy a house in Switzerland

Buying a house in Switzerland is an important choice and can be very strategic in many ways.

The Swiss franc has always been considered a safe haven currency and consequently, the purchase of a property in the Swiss Confederation offers the opportunity to combine practical or even leisure needs and the desire to make an excellent investment for one’s own future and that of one’s family.

For instance, for those who decide to move to Switzerland, buying a house is a step that in the long run can generate savings on rental costs while for cross-border commuters it can be an excellent choice to improve the quality of their life by significantly reducing the time of travel from home to work.

On the Swiss territory, there are also some of the most popular tourist destinations where you can spend fantastic winter and summer holidays. Moreover, the idea of ​​buying a chalet surrounded by greenery or a house overlooking the beautiful Swiss lakes become even more attractive thanks to the awareness that these properties will never lose value.

Buying a house, the limits for foreigners

The purchase of a house in Switzerland is regulated by a series of restrictions for foreign citizens aimed at preserving the value and stability of the real estate market.

It follows the main rules and limitations relating to the purchase of properties in the Swiss Confederation:

  • Citizens who are not resident in Switzerland can only buy a property that can be used for holidays and this secondary residence must meet different parameters. For example, the floor area must not exceed 200 m² and the external area must not exceed 1,000 m².  Currently, in Switzerland secondary residences are contingent and in the most touristic areas difficult to find. The owners can use the house for no more than 3 consecutive months and cannot rent it for over 10 consecutive months.  However, there aren’t restrictions for commercial properties.
  • Citizens resident in Switzerland and with a permit B or C have the same rights as Swiss citizens for the purchase of properties. All purchases of citizens with permit B are examined by a committee for LAFE purposes (Federal law that limits the purchase of funds in Switzerland by people abroad). After the approval of this committee the house can be transferred and registered.

Permit B and C are issued to those who have an employment contract or a business activity or sufficient financial means to live.

Lugano, one of the best cities to buy a house in Switzerland

Buying a house in Switzerland, all the costs to be incurred

Before making the decision to buy a house in Switzerland, it is advisable to evaluate all the costs that must be added to the price of the property.

Find out all the costs related to the purchase of a house in Switzerland.

Notary

To purchase a property you must always contact a notary, whose parcel is calculated on the value of the property purchased. The higher the cost of the property, the higher the costs of the notary.

In general, the fee of this professional varies between 0.2% and 0.6% of the property price indicated in the contract.

Taxes: transfer tax and registration tax

When buying a property in Switzerland you are subject to two types of taxes:

  • transfer tax
  • registration tax

These taxes are calculated as a percentage of the property value and their amount varies from canton to canton. For example, in some cantons, the transfer fee can go up to 3.3% of the property value while the registration fee is around 1%.

In Ticino, these two taxes generally have a value of 1.4%

Mortgage

Often there are not enough funds available to pay the full purchase price of a property and sometimes it would not be convenient because of the possibilities offered by the Swiss system. So, it could be necessary to apply for a loan or a mortgage.

In Switzerland, it is possible to apply for mortgages both to banks and to insurance institutions through a rather simple procedure but 100% mortgages are never granted.

It is necessary to pay at least 20% of the value of the property with its own funds and then the chosen institution will finance 80% through two mortgages. This situation should not scare you, the debt remains the same but the amortization method changes.

The 1st mortgage can have a value of up to 65% of the funded portion, while the 2nd mortgage can have a value of 15%. The 1st mortgage may never be repaid but, you have only to paid for interest rate while the 2nd mortage must be repaid within 15 years or before the retirement.

Moreover, the mortgage can have a fixed or variable interest rate and it is very important to evaluate all the clauses, including the exit clause.

Currently, a 10-year fixed rate can be stipulated around 1%: an excellent condition that is very difficult to find in other countries!

Buy a house in Switzerland, perfect idea for the holidays

The rental value

The rental value is not a cost that is paid for the purchase of the property but it is a tax that must be paid annually by the property owners.

This value, calculated on the basis of the amount obtained in case of leasing to third parties, is added to the other incomes and taxes are calculated on this total sum. However, the rental value is balanced by the deduction from the taxable amount of the home maintenance costs as well as interest on the mortgage.

Do you still have doubts about the procedure and costs to be faced when buying a house in Switzerland?

Do you want to start looking for your dream property?

Write to us, we will be happy to assist you in finding the perfect property for your needs.

 

Alessandro Dubini
CEO & Trustee
Domus Realty
Paradiso

CONTATTACI