Can Foreigners Buy Property in Switzerland? Expert Answers and Tips

As a foreigner living or working in Switzerland, you have probably considered owning property in the Alpine country. After all, Switzerland has some of the most exciting and breathtaking natural wonders you would like to experience each day. But if you are a foreigner, you are likely to encounter a challenge owing a piece of Swiss real estate.

Swiss authorities have enforced restrictive laws on foreigners wishing to own property. Restrictions on property ownership differ across different states or cantons.

What Are the Restrictions on Owning Property by Foreigners in Switzerland?

If you are a non-Swiss national but a citizen of an EU member state, you will have an easier time owning property here. Non-Swiss nationals from EFTA also enjoy similar rights to those reserved for Swiss citizens.

Other non-Swiss nationals outside of those jurisdictions have to endure a rigorous process of buying property. The Lex Koller prevents you from buying property or land for use as a primary residence. If you are interested in purchasing a holiday home as a non-resident, you will require approval from the canton or territory where the said property is located.

Property taxes in Switzerland vary across cantons. You will need to pay an annual tax on your property. This amount varies across cantons. Owning a secondary property in Switzerland is even harder for non-residents. In exceptional cases, this may be possible such as if you enjoy economic or cultural ties with a partial canton.

Who Requires Authorization to Own Property?

If you are a non-EFTA or non-EU citizen, you require permission to own these kinds of property in Switzerland:

• Holiday homes that may be rented out by the owner
• A second home, as long as the owner has no intention of converting it into a rental unit
• Residential properties housed in serviced buildings

The authorities could lift restrictions on property ownership by foreigners as long as you fulfill the following requirements:

• You intend to occupy the property as opposed to renting it out.
• You hold a residence permit with temporary validity.
• You have bought land to put up a house, and the construction commenced within 12 months following the acquisition.

There is no need for approval by the Swiss authorities before the purchase of commercial property.

Buying a Commercial Property in Switzerland

The Swiss authorities have relaxed rules for foreigners who wish to buy property for economic reasons. It is much easier to secure a property for commercial purposes such as a restaurant, office space, warehouse, doctor’s premise, or production facility. However, the requirements are different for each canton. You are advised, therefore, to liaise with the local canton authority to learn more about the limitations or requirements in place.

As a foreigner, you are at liberty to use the acquired property for the business that you have in mind. Alternatively, you may also consider leasing out the space to a third party for commercial use.

Securing Property for Permanent Residence

Non-Swiss nationals holding a type B, C, or L permit enjoy the same right to own property as Swiss nationals. Foreign nationals with a type C permit may also own or acquire real estate, but Swiss authorities in particular cantons may put restrictions on purchase of property for this group of people.

An L permit is granted to a foreign national holding a temporary work contract, usually less than 12 months. In case the contract extends 12 months, you qualify for a B permit. Foreign nationals with permanent residence are granted a C permit. That means there are no restrictions for where you work or live.

Buying a Second Home

If you are interested in buying a second home in Switzerland, you will have to fulfill certain requirements before you can realize your dream. First, the property should be located in a tourist community. Second, you will have to seek approval from a competent authority.

In case the property was acquired as an inheritance, you also do not need to apply for authorization. The purchase is also exempted from the quota system. The floor space must not exceed 200m², although some cantons might give a bigger allowance. If you intend to lease this property, it must be a temporary arrangement.

Owning a Holiday Home

If you consider purchasing a holiday unit either in Zurich or Geneva, this may not be possible. For a non-Swiss national residing abroad, you can only qualify to purchase a second holiday home if it is located in a place with which you share close ties with.

This legal requirement may be interpreted differently by different cantons. However, the ground area must not exceed 1000m2, while the property should be within a tourist zone. You are only allowed to rent out your holiday home temporarily. If this is your second home, there is no provision for renting out.

Real Estate in Ticino

The Ticino canton, located in the southern part of Switzerland, is a popular spot for foreigners interested in holiday homes. Here, you will find elegant properties with a nice view of Lake Maggiore and Lake Lugano. Even so, be prepared to undergo the rigorous process of strict approval by the canton on property size and usage.

Summary

If you envision owning property in Switzerland, make sure you are fully familiar with the complex property law. Some cantons have stricter property laws than others. Other states like Geneva and Zurich make it harder for foreigners to own a holiday home. To be safe seek legal advice to help you navigate the murky waters of property law in Switzerland. As a non-Swiss national, you can bank on Suisse Immobilien Group to guide you on all your queries about buying property here.