This is supported by the very high quality of life that Switzerland has to offer with low crime rates, outstanding construction, superior education and excellent medical facilities. font-size: 12px; All of the various reasons for the purchase of real estate have very different consequences, not only from a tax and legal point of view, but also regarding succession, financial structuring and asset allocation. What do you have to consider if you want to buy a property in Switzerland as a foreigner? In contrast, for second home residences there are different quotes in each canton for the purchase of properties by foreigners without official approval.¹¹. padding: 0 5px; A purchase of a holiday home by children is authorised, provided that they are over 18 years old and are using their own assets. Foreigners allowed to buy properties in Switzerland Foreigners who can buy a property in Switzerland are EU or EFTA national who hold a Swiss residence permi t, holders of C Permits, B Permit holders. border-bottom: none !important; In addition to extremely strict rules on residency and citizenship, the country has a famously restrictive “Lex Koller” property law, which limits foreign purchases to resort property in specific cantons: Valais, Vaud, Graubünden and Ticino. These cookies help us to provide you with the best … font-weight: 500; m.), Authorisation to purchase a holiday home by the canton, Confirmation of a Swiss bank for the financing of the purchase, Authorisation in favour of the notary to withhold transaction costs and taxes from the purchase price, Tax implications related to the countries, Financing and structuring of real estate purchase. In March 2012, the Franz Weber initiative was accepted by the Swiss people in order to limit the construction of new secondary residences in tourist areas to a maximum of 20 % of the buildable area of the commune. border-bottom: 1px solid red; With its unique Swiss alps, from Lake Geneva to the Bündnerland or the idyllic landscapes around the numerous Swiss lakes, the country has a lot more to offer than renowned watches and delicious chocolates. In addition, real estate in Switzerland is subject to the cantonal inheritance tax (subject to each individual’s circumstances, please seek advice). margin: 60px 0; The Swiss real estate market is one of the most solid worldwide; nevertheless, it is not as easy as elsewhere to buy a property in Switzerland. Search for real estate and find the latest listings of Switzerland Property for sale. Traditionally, all real estate agency fees are paid by the seller unless agreed in advance or if a buyer signs a search mandate to provide a bespoke search service. font-weight: bold; 1. As part of owning real estate in Switzerland the owner becomes personally liable for income and wealth taxes in connection with the property. Rightmove.co.uk lists the very latest property in Switzerland. Usually, holiday homes are taxed based on the deemed rental value and tax value at the rates applicable to worldwide income and wealth. The inheritance from a deceased person who was resident abroad does not generally fall under Swiss inheritance law. So unless you are Swiss, or hold a Swiss Residence Permit, you cannot buy a property in Geneva, Basel, Zurich, Zug or any of the other cities in Switzerland. m. maximum of land (in certain cases this limit can be increased up to 1500 sq. The lowest maximum income tax rates are at approximately 20%, the highest at around 42%. However, the terms regarding the loan may vary depending on the institution offering it. As one of the most secure countries in the world, Switzerland offers its citizen political stability and a very high quality of life. This property may be used for an activity or rented. Even foreign or Swiss companies with over 30% foreign ownership have restrictions when buying property. Website by Procabstudio, RESTRICTIONS FOR THE ACQUISITION OF REAL RESTATE IN SWITZERLAND, TAX IMPLICATIONS OF TAKING UP RESIDENCY AND INHERITANCE TAX, PURCHASE OF A SECONDARY RESIDENCE BY NON-RESIDENTS, FINANCING AND STRUCTURING OF PURCHASE OF REAL ESTATE, Purchase autorisation delivered by the competent authorities, Within the annual permit quota for each canton/commune (Village)For private use only. Buying Property as a Foreigner Just as with renting an accommodation, those interested in how to buy a house as a foreigner in Switzerland will find the process easy, but limited. .investor-tables table thead td, .investor-tables table tfoot td { Find Property for sale in Switzerland. For the acquisition of a holiday home an application for the purchase needs to be filed with the relevant authorities. The procedure to acquire, hold and sell real estate and its taxation are primarily regulated by cantonal and communal laws. An indirect investment through a Swiss or foreign company, trust or foundation structure is possible and in some cases recommendable for tax, legal or succession planning purposes. PURCHASE OF A SECONDARY RESIDENCE BY NON-RESIDENTS, 5. FINANCING AND STRUCTURING OF PURCHASE OF REAL ESTATE. On the other hand, maintenance costs and mortgage interests are fully deductible from the taxable income. 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