Buying property in Switzerland - SWI swissinfo.ch (2024)

FAQs

Buying property in Switzerland - SWI swissinfo.ch? ›

Foreigners are allowed to buy real estate in Switzerland, but the conditions vary depending on the type of property and the buyer's country of origin. Switzerland has a specific federal law regulating how foreigners can buy property, known as the “Lex Koller” (after former justice minister Arnold Koller).

Non-Swiss residents acquiring a home in Switzerland must apply for a foreign buyer's permit. This entitles the owner to reside in the country up to 180 days per annum, subject to a maximum stay of 3 months at a time. Non-Swiss residents, are not permitted to own more than one residential property.

Costs of buying a property in Switzerland

The Swiss government has made it a point to keep real estate prices low, so buyers have to pay relatively low fees. In addition, few other costs are associated with buying a home in Switzerland. This makes Switzerland one of the cheapest places to buy a house in Europe.

Many people in Switzerland are afraid to buy a home because of the high-interest rates. It's expensive to pay high-interest rates. Most people don't have enough money to afford the high-interest rates. For example, if you take out a loan for a house and you pay 3% interest, then you have to pay €1,500 every month.

A 20% deposit is typically the minimum necessary, including at least 10% in cash. There are no general assistance schemes in Switzerland to help with the costs of buying property. If you don't have the minimum 20% to contribute towards a mortgage, you are unlikely to be able to buy a Swiss home.

Yes, US citizens can retire in Switzerland once they meet the requirements and criteria for obtaining a Switzerland Retirement Visa. As a US citizen, you must receive a visa from the Swiss consulate, and apply for a residence permit without gainful employment within two weeks of entering the country.

As an American living in Switzerland, you're generally required to file a U.S. tax return. Americans are required to report their worldwide income on their U.S. tax return. If you are a U.S. citizen living in Switzerland, you're required to report your Swiss income on your U.S. tax return.

The average house in Switzerland costs 1.19 million Swiss francs, which is currently 1.34 million US dollars and 1.08 million British pounds. However, there are significant regional variations. You can find the cheapest houses and apartments in the canton of Jura. Real estate is the most expensive in the canton of Zug.

It's important to know that even without B or C permit, you may buy holiday or commercial housing with prior permission from cantonal authorities. However, simply purchasing real estate in Switzerland doesn't automatically grant the right to residency.

Property tax

Whether you buy, own, or sell your property in Switzerland, you will need to pay taxes for it. If you are purchasing property, you will need to pay a property transfer tax to register your new accommodation in the local land registry. This costs 1–3% of the purchase price.

What is the downside of living in Switzerland? ›

While there are numerous benefits to living in Switzerland, there are also some drawbacks to consider: High Cost of Living: As mentioned earlier, the cost of living in Switzerland is considerably high. This extends beyond just housing and includes groceries, dining, and general entertainment.

The median price for houses on the market is CHF 1,200,000. The asking price for 80% of properties falls between CHF 520,000 and CHF 2,950,000. The average price per m² in Switzerland is CHF 7,502 / m² (price per square meter).

Switzerland has long attracted rich foreigners, enticed by its high wages, stable economy, and favorable tax rates. More than 25% of the Swiss population has foreign roots, and around half of the country's multi-millionaires come from abroad. With rich residents come high prices.

Geneva and Zurich, the two most vibrant cities in the country, perhaps have a premium price property market, but they also offer a very good standard of living. They were also in the Top 10 of the Mercer International Ranking for quality of living in 2019.

Rent in Switzerland

Shared apartments cost approximately $780-1200 per month, while private apartments cost from $1600 to $2300 per month. Luxury apartments cost roughly $3000-4100 per month, depending on the location and size of the property. With accommodation costs ranging from CHF 150 to 400 per month.

The process can take between 1 and 3 months, depending on the type of transaction. Yes, citizens of non-EU states must first secure permanent residence permit to acquire Swiss properties. Yes, our lawyers in Switzerland can assist in the process of buying real estate.

You need to have lived in Switzerland for a minimum of five years (in most cases, ten years) before you are eligible to apply for permanent residence. You need ten years of continuous residence in Switzerland to apply for Swiss Citizenship.

You will need to apply for a residence permit with the cantonal you plan to move to. Once you've entered the country, you go to the cantonal immigration and labor market authorities to register and receive your Swiss residence permit.