Authored by the expert who managed and guided the team behind the Switzerland Property Pack
Everything you need to know before buying real estate is included in our Czech Republic Property Pack
Americans can legally buy property in Switzerland, but with significant restrictions under Lex Koller law that limit non-EU buyers to holiday homes in designated tourist areas.
While Swiss citizens and EU nationals enjoy unrestricted property ownership, Americans face strict quotas, size limitations, and cannot purchase primary residences in major cities without a residence permit. The Swiss property market offers strong capital appreciation potential, with Zurich and Geneva seeing 4-5% annual price growth, though average prices range from CHF 13,490-21,110 per square meter in top cities.
If you want to go deeper, you can check our pack of documents related to the real estate market in Switzerland, based on reliable facts and data, not opinions or rumors.
Americans can buy holiday homes in designated Swiss tourist areas but need residence permits for primary residences in cities. Property purchases require foreign buyer permits under Lex Koller law, with strict size and location restrictions.
Major cities like Zurich and Geneva show strong price growth (4-5% annually) with average prices of CHF 13,490-21,110 per square meter, while tourist areas offer better rental yields of 4%+ compared to the national average of 3%.
| Property Type | Americans Can Buy? | Requirements |
|---|---|---|
| Holiday/Second Homes | Yes | Tourist areas only, Lex Koller permit, size limits |
| Primary Residences | No (without permit) | Swiss B or C residence permit required |
| Investment Properties | Limited | Commercial only, business justification needed |
| City Properties | No (without permit) | Residence permit required for Zurich, Geneva, Bern |
| Ski Resort Properties | Yes | Verbier, Zermatt, St. Moritz with permits |
| Mortgage Availability | Limited | 70-80% LTV, stricter criteria for non-residents |
| Remote Purchase | Yes | Power of attorney, Swiss notary required |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can Americans legally buy property in Switzerland or are there restrictions compared to Swiss citizens or EU nationals?
Americans can legally buy property in Switzerland, but face significant restrictions under the Lex Koller law compared to Swiss citizens and EU nationals.
Swiss citizens and EU/EFTA nationals with Swiss residence can buy any property type anywhere in Switzerland without restrictions. They have complete freedom to purchase primary residences, second homes, investment properties, and commercial real estate in any location.
Americans and other non-EU nationals can only buy holiday or second homes in designated tourist areas, subject to strict federal and cantonal quotas. These properties are limited to a maximum of 200-250 square meters of habitable space and 1,000 square meters of land. Americans cannot buy primary residences in Swiss cities unless they hold a Swiss B or C residence permit.
Investment properties are generally restricted for Americans, except for commercial real estate which requires business justification and regulatory approval.
It's something we develop in our Switzerland property pack.
Do Americans need a visa or residency permit to purchase property in Switzerland?
Americans do not need a visa or residency permit to purchase holiday homes in approved tourist areas, but must obtain a foreign buyer's permit under Lex Koller regulations.
For holiday or second home purchases in designated tourist communes like Verbier, Zermatt, or St. Moritz, Americans can complete the transaction without Swiss residency. However, they must apply for and receive approval through the Lex Koller permit process, which involves federal and cantonal authorities reviewing the purchase.
To buy a primary residence anywhere in Switzerland, Americans must have a valid Swiss residence permit (B or C permit), which requires actually living and working in Switzerland. These permits are tied to employment, family reunification, or other qualifying circumstances.
Purchasing property does not grant Swiss residency, visa rights, or any path to citizenship. The property purchase and residency processes are completely separate under Swiss law.
Is it possible for an American to buy property in Switzerland without being physically present during the process?
Yes, Americans can complete property purchases in Switzerland remotely using a power of attorney arrangement.
The key requirement is appointing a Swiss-based representative with power of attorney to sign documents and complete the transaction on your behalf. This is particularly important for the deed of sale signing, which must be notarized by a Swiss notary.
While physical presence is not mandatory, you'll still need to work with a Swiss notary or lawyer who handles the legal aspects of the transaction. The notary ensures all documents are properly executed and registers the ownership with the Swiss Land Register.
Many American buyers use this remote process successfully, especially for holiday home purchases in tourist areas where they may not visit frequently during the buying process.
What kind of properties can Americans purchase and are there regional limitations?
| Property Type | Permitted for Americans | Regional Limitations |
|---|---|---|
| Holiday/Second Homes | Yes | Only in designated tourist communes |
| Primary Residences | No (without permit) | Prohibited in all major cities without residency |
| Investment Properties | Very Limited | Commercial only, business justification required |
| Ski Resort Properties | Yes | Verbier, Zermatt, St. Moritz, Gstaad allowed |
| Urban Apartments | No (without permit) | Zurich, Geneva, Bern, Basel restricted |
| Lakefront Properties | Limited | Only in approved tourist areas |
| Commercial Real Estate | Possible | Hotels, offices with business case |
Are there specific areas in Switzerland where Americans typically buy property?
Americans typically concentrate their Swiss property purchases in premier ski resorts and tourist destinations where foreign ownership is permitted.
The most popular areas for American buyers include Verbier, Zermatt, St. Moritz, Gstaad, and Crans-Montana. These locations offer world-class skiing, luxury amenities, and strong rental demand from international tourists. Verbier and Zermatt are particularly favored for their accessibility and established international communities.
For lifestyle purposes, Lake Geneva region properties in tourist-designated areas provide stunning scenery and proximity to Geneva's international business community. The Interlaken region attracts buyers seeking year-round tourism potential with both summer hiking and winter sports.
From an investment perspective, ski resorts in Valais canton offer the highest short-term rental yields, often exceeding 4% annually due to strong winter tourism demand. However, for capital appreciation, the restricted urban markets of Zurich and Geneva show the strongest price growth at 4-5% annually, though these require Swiss residency to access.
What's the average price per square meter in major cities and popular resort areas?
Swiss property prices vary dramatically between major cities and resort areas, with urban centers commanding premium prices but remaining largely inaccessible to non-resident Americans.
In major cities where Americans cannot buy without residency permits, Zurich leads with CHF 13,490-21,110 per square meter, followed by Geneva at CHF 14,290-20,960 per square meter. Lausanne averages CHF 12,458-15,490 per square meter, while more affordable options exist in Bern at CHF 7,850-11,450 per square meter.
In tourist areas accessible to Americans, prices are generally lower but vary by location and amenities. Rural Valais properties average CHF 3,000-4,000 per square meter, while premium ski resort properties can reach CHF 8,000-12,000 per square meter depending on location and luxury level.
As of June 2025, the most affordable regions remain Jura and rural areas at approximately CHF 3,250 per square meter, though these locations may have limited rental income potential.
Don't lose money on your property in Switzerland
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the liveability scores, rental returns, and price growth forecasts for top Swiss investment areas?
Switzerland consistently ranks among the world's top countries for quality of life, safety, and infrastructure, making it highly attractive for both lifestyle and investment purposes.
The national rental yield average sits at 2.96-3.04%, but tourist areas significantly outperform this benchmark. Valais and Interlaken regions can achieve rental yields exceeding 4% due to strong tourism demand, particularly for short-term vacation rentals during ski season and summer hiking periods.
Tourism statistics support strong rental potential, with Switzerland recording 41.8 million overnight stays in 2023, showing robust growth in key markets. Valais and Interlaken regions experienced the strongest tourism growth, directly benefiting rental property investors in these areas.
Price growth forecasts for 2025-2026 show Zurich and Geneva expecting 4-5% annual appreciation, though these markets remain inaccessible to non-resident Americans. Tourist areas show more modest but consistent growth of 2-3% annually, supported by limited supply and strong international demand.
It's something we develop in our Switzerland property pack.
Can Americans get a mortgage from a Swiss bank as non-residents?
Americans can obtain mortgages from Swiss banks as non-residents, but face stricter criteria and limited options compared to residents.
Swiss banks typically offer loan-to-value ratios of 70-80% for non-resident Americans, requiring a minimum 20% down payment with at least 10% in cash. Some premium banks may extend up to 80% LTV for high-net-worth clients with strong Swiss banking relationships.
Interest rates for non-residents range from 1.45% to 2.30% for fixed-rate mortgages (5-10 year terms), while variable rates typically fall between 2.4-2.8%. Rates may be slightly higher for non-residents compared to Swiss residents due to perceived higher risk.
Banks assess income stability, creditworthiness, and property purpose during the approval process. Existing Swiss banking relationships, substantial assets, or strong ties to Switzerland significantly improve approval chances. Most banks require proof of income from stable sources and comprehensive financial documentation.
What documents do Americans need to provide and what's the step-by-step process?
Americans need comprehensive documentation and must follow a structured process that typically takes 2-4 months from offer to ownership.
Required documents include a valid US passport, proof of funds or bank statements, foreign buyer's permit application (Lex Koller), and mortgage pre-approval if financing. Additional documentation may include income verification, tax returns, and proof of property insurance.
The step-by-step process begins with property identification and making an offer through a real estate agent. Next, you sign a reservation contract and pay a deposit, typically 5-10% of the purchase price. Simultaneously, apply for a mortgage if needed and submit the foreign buyer's permit application to Swiss authorities.
Once approvals are received, you sign the sales deed with a Swiss notary, either in person or through power of attorney. The notary then registers the ownership with the Swiss Land Register and handles all legal transfers. Finally, you pay all applicable taxes, notary fees, and registration costs to complete the transaction.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Switzerland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Is hiring a Swiss notary or lawyer mandatory and what are their roles and costs?
Hiring a Swiss notary is mandatory for all property transactions in Switzerland, as they serve as the official legal authority for property transfers.
Swiss notaries have multiple essential roles including drafting and certifying the sales deed, verifying clear ownership and title, registering mortgages with lenders, and officially registering the new ownership with the Swiss Land Register. They also provide legal advice on tax implications and ensure all regulatory requirements are met.
Notary fees vary significantly by canton, ranging from 0.1% to 5% of the purchase price. Zurich charges approximately 0.1%, Bern around 0.5%, while some cantons can charge up to 5% of the property value. Geneva and Vaud typically fall in the middle range at 1-2%.
While not mandatory, many Americans also hire independent lawyers for additional legal advice, contract review, and to navigate the foreign buyer permit process. Legal fees typically range from CHF 1,500-5,000 depending on transaction complexity.
What are the main taxes and annual fees Americans must pay when buying and owning Swiss property?
Americans face multiple tax obligations both in Switzerland and the United States when buying and owning Swiss property.
Swiss purchase taxes include property transfer tax (1-3% in most cantons, though not all cantons impose this), notary fees, and registration fees. Some cantons like Zurich have no transfer tax, while others like Geneva charge up to 3% of the purchase price.
Annual Swiss obligations include wealth tax calculated on the property's assessed value, property tax in certain cantons (typically 0.1-0.3‰ of value), and income tax on any rental income generated. Tax rates vary significantly by canton and municipality.
US tax implications require Americans to report their worldwide income and assets, including Swiss property. Property sales may trigger US capital gains tax, though mortgage interest may be deductible. The US-Switzerland tax treaty prevents double taxation on most income types.
It's something we develop in our Switzerland property pack.
What are the common mistakes Americans make when buying Swiss property and how to avoid them?
Americans frequently make costly errors when buying Swiss property, primarily due to unfamiliarity with Lex Koller restrictions and Swiss legal requirements.
The most serious mistake is attempting to buy property outside approved tourist areas or without proper permits, which can result in hefty fines or forced sale. Always verify that your target property is in a designated tourist commune and obtain all required permits before proceeding.
Underestimating total costs is another common error, as many Americans focus only on the purchase price while ignoring notary fees, taxes, and ongoing maintenance costs. Budget for an additional 3-8% of purchase price for transaction costs plus annual fees.
Currency risk exposure can significantly impact both purchase and future sale proceeds due to CHF/USD fluctuations. Consider currency hedging strategies for large transactions and understand the potential impact on your investment returns.
Tax compliance failures can result in severe penalties, particularly failing to report Swiss property or rental income to US tax authorities. Establish proper tax planning with both Swiss and US tax professionals before purchasing.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Americans can successfully buy property in Switzerland by focusing on holiday homes in designated tourist areas, though they face significant restrictions compared to EU nationals.
Success requires careful navigation of Lex Koller regulations, proper permit applications, and comprehensive understanding of both Swiss and US tax obligations.
Sources
- InvestRopa - Switzerland Real Estate for Foreigners
- SwissInfo - Buying Property in Switzerland
- NEHO - Who Can Buy Property in Switzerland
- Investors in Property - Switzerland Property Guide
- PropertyStar - Switzerland Real Estate Guide
- Schraner Verbier - Foreigners Buying Property
- Expatica - Buying Swiss Property
- Global Property Guide - Switzerland Price History
- UBS - Swiss Property Ownership and Taxes
- Greenback Tax Services - US Taxes in Switzerland