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faq - for purchasers of swiss property
1. What is the position regarding
the purchase of a Residential property-chalet or apartment in Switzerland
by a non Swiss or non Resident person?
The sale of property to non-Swiss residents is subject to several conditions/
laws. Each canton has a yearly quota of properties authorised for sale
to - non-residents. This law came into effect on the 1st January 1985
The purpose of the law is to control the purchase of properties in Switzerland
by non-residents. An authorisation to purchase must be obtained from
the Federal Department of Justice and Police, this is obtained via a
Notary who deals with all aspects of the Sale/transfer of Property (in
Switzerland they are State officials).
In 2007 the state council of Valais
imposed a moratorium for one year prohibiting sales to foreigners in
certain resorts as there were queues of 2 years or more to obtain a
foreigner purchase permit. This ban was
lifted on the 23rd of November 2007 and it will be possible to buy in
the Valais again in 2008. However,
there will only be 99 foreigner permits available for all the resorts
in the Canton for new homes and resale. Land registry will meet 4 times
per year to give the authorizations, next time being 18th of April.
The 99 units will be for sure given out. Next authorizations will resume
in 2009 starting with a february meeting.
However, a foreigner could buy a
new chalet or re-sale chalet almost immediately if they
apply for a B permit as this gives the right to reside in Switzerland
and to buy a property there. B permits
are quite easy to obtain, particularly for those over the age of 50
and who do not need to work in
Switzerland. It takes around 2 months to obtain (younger people can
also apply but this may take a little
longer). We have excellent connections and we are able to assist with
your B permit application as part of
the purchase process. There are no negative tax implications but you
will be required to join a Swiss private
health insurance scheme (around 120 sfrs per month).
The G permit - crossboarder commuter
- is now an interesting alternative to the B permit that allows you
to purchase a property under certain conditions.
Please ask for further information
and see this link:
Swiss
Permits...>
Vaud / Bern / Fribourg / Graubunden
is still open to foreigners in certain communities with a variable waiting
time. When purchasing from a Swiss, temporary rentals can be arranged
while waiting for a unit. This can take 1-2-3 years depending on the
community. When purchasing from a foreigner, transfer takes about 3
months.
2. Who can buy?
A Foreigner ie. Non-Swiss may only buy one property per family in Switzerland:
with ‘family’ defined as husband and wife and/or under-age
children. After the age of 20, the son or daughter of an owner may purchase
one property in his/her own name, provided he/she can prove his/her
financial independence.
3. What can I buy?
A non resident is allowed to buy an apartment or a chalet which is no
larger than 200m2 of living space and a 1000m2 plot.
4. What about Re sale?
In Vaud it is now possible to resell an apartment immediately after
its acquisition even to another non-resident. All applications for re
sale must be made through a Notary.
In Valais: re sale is possible after 10 years (immediate
re sale is possible if financial difficulties can be proven)
5. How long can I be in my property?
An owner or his family may occupy their apartment/Chalet for up to six
months per annum if the property is purchased as a holiday home.
For longer period, a residency permit B or C is
required or use of property for retirement. To obtain a residency permit
a 50'000 Sfr income in Switzerland is required. For retirement, sufficient
funds for a decent living must be proven.
Am I allowed to let out the property?
A property cannot be rented on a yearly basis (it can be let for a max
period of max 11 months and one week) Reason for this Regulation is
because an owner is supposed to use his property for at least three
weeks of the year.
What are the associated costs of purchase?
Cantonal + Communal transfer fee: 3.3 %
Notary’s costs/fee and registration Fee: 1.7 %
i.e. The purchase costs amount to a total of 5.0 % of the acquisition
price (3% in Valais canton)
If a mortgage is required what are the costs involved?
up to 100’000.-- = 0,6 %
up to 200’000.-- = 0,5 %
up to 300’000.-- = 0,47 %
up to 400’000.-- = 0,45 %
up to 500’000.-- = 0,44 %
So we have found a property what is the procedure
to complete the purchase?
This is relatively straight forward and I recommend that an appointment
be made with a Notaire which we can introduce you to. At that meeting
you will need to bring your passport, you will complete a civil status
questionnaire. And it will be possible for you to grant the Notaire
a Power of Attorney to sign the contact on your behalf within that document
will be
- The name and full address of the purchaser,
- The location, name and details of the chalet/apartment, the number
of the apartment and floor it is on, the number of the parking space
(if applicable),
- The detailed selling price: price of the apartment
Price of the parking space
= Total sale price
In the case of a Building under construction this will also detail the
schedule of payments, as a percentage of the total sale price, corresponding
to the extent of
The works,
- The total mortgage required and the name of the banking firm to which
the application is made.
a) Copy of his/her passport.
b) Then he must fill out a Power of Attorney which states the following
:
The above documents are normally completed with the help of Gérance-Se
and then forwarded to the official Swiss notary who begins the purchase
procedure.
Once the notary has received all these completed and signed documents,
plus the deposit, he will take the following steps :
1. Proceed to the signing of the agreement to sell and purchase (Promesse
de vente et d’achat) or a pre-signed contract for a future purchase
(Vente à terme).
2. Application via the Notaire for you to purchase a non resident in
Switzerland
3. Apply for any mortgage required
When Permission for you to purchase has been received
the the Notaire will complete the Contract and the property will be
Registered in your name(s) at The Land Registry
Are there any guarantees on Properties bought ?
Construction guarantee (for new buildings only)
The federal construction guarantee is :
- 5 (five) years for construction defects
- 10 (ten) years for hidden defects
For re-sale properties, there is no guarantee
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