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Buying property in Switzerland as a foreigner involves navigating strict legal restrictions under the Lex Koller law, which significantly limits where and what type of property non-residents can purchase.
Switzerland's property market offers stability and prestige, but foreign buyers face higher capital requirements, limited mortgage access, and specific quotas that restrict residential property purchases to designated tourist zones for non-residents.
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Switzerland allows foreign property purchases under strict conditions, with non-residents limited to tourist zones and commercial properties, requiring 20% minimum equity and facing significant recurring costs.
The Swiss property market is historically stable but comes with complex legal restrictions, limited mortgage access for foreigners, and substantial transaction fees ranging from 3-5% of purchase price.
| Aspect | Residents (B/C Permit) | Non-Residents |
|---|---|---|
| Residential Property Access | Full access nationwide | Tourist zones only (with quotas) |
| Commercial Property Access | Full access | Full access (no restrictions) |
| Minimum Equity Required | 20% of property value | 20-25% of property value |
| Mortgage Availability | Up to 80% financing | Limited, varies by nationality |
| Property Size Limits | No limits | 200 sqm living space max |
| Rental Restrictions | No restrictions | Short-term only (max 11 months/year) |
| Number of Properties | No limits | Typically one property only |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can foreigners legally buy property in Switzerland without restrictions?
No, foreigners cannot buy property in Switzerland without restrictions due to the Lex Koller law.
Swiss residents with B or C permits have full access to purchase residential property anywhere in Switzerland. Non-residents face significant limitations and can generally only acquire vacation homes in designated tourist zones, subject to cantonal quotas and permissions.
Commercial properties like offices, retail spaces, and hotels are exempt from Lex Koller restrictions, meaning non-residents can buy these freely throughout Switzerland. This exemption makes commercial real estate the most accessible option for foreign investors without Swiss residency.
Non-EU/EFTA residents without Swiss permits face the strictest limitations and typically cannot purchase residential property except under specific tourist-zone exceptions with cantonal approval.
It's something we develop in our Switzerland property pack.
What are the specific rules of the Lex Koller law and how do they apply to non-residents?
The Lex Koller law strictly regulates foreign property ownership in Switzerland by limiting non-residents to specific property types and locations.
Non-residents can only purchase properties in designated tourist zones, which are typically mountain resort areas like Gstaad, Verbier, and St. Moritz. Each canton sets annual quotas for foreign purchases, creating limited availability and often driving up prices in these areas.
The law permits non-residents to buy only one property, with maximum restrictions of 200 square meters of living space and 1,000 square meters of land area, though these limits vary by specific location. Properties must be used primarily for vacation purposes, not as permanent residences or pure investment vehicles.
Buying for pure investment or "buy-to-let" purposes is generally prohibited for non-residents under Lex Koller. The law aims to prevent foreign speculation while preserving local housing availability for Swiss residents.
Commercial properties including offices, retail spaces, hotels, and industrial facilities are completely exempt from Lex Koller restrictions, allowing non-residents full access to these investment opportunities nationwide.
How much initial capital is typically required to purchase property as a foreigner in Switzerland?
Swiss banks typically require a minimum deposit of 20% of the property price as initial equity for foreign buyers.
For a CHF 2 million property in Geneva, you would need at least CHF 400,000 in cash as the minimum down payment. Additional purchase costs including notary fees, taxes, and registration charges bring the true upfront cost to approximately 25-27% of the property price in most regions.
This means for a CHF 2 million property, you should budget around CHF 500,000-540,000 in total upfront costs including the down payment and transaction fees. Higher-end properties in prime locations like Zurich or luxury ski resorts may require larger down payments or additional financial guarantees.
Swiss banks often require proof of income, assets, and financial stability from foreign buyers, with some institutions requesting higher equity contributions from non-residents compared to Swiss residents.
The substantial capital requirements make Switzerland's property market accessible primarily to affluent foreign buyers with significant liquid assets.
Are mortgages easily available to foreigners and what percentage of the property value can usually be financed?
Mortgages are available to foreign buyers, but access varies significantly based on nationality and residency status.
Most Swiss banks allow financing up to 80% of the property's value for qualified foreign buyers, meaning you can typically mortgage 80% while providing 20% equity. However, some lenders impose stricter conditions for non-residents or buyers from specific countries.
US citizens and residents of certain countries may find access to Swiss mortgages more limited due to banking regulations and tax compliance requirements. Some banks restrict lending based on nationality or require additional documentation and guarantees from non-European buyers.
Interest rates for foreign buyers are generally competitive with those offered to Swiss residents, typically ranging from 2-4% as of September 2025, though rates can vary based on the buyer's financial profile and the bank's policies.
Non-residents should expect a more rigorous approval process including detailed income verification, asset documentation, and sometimes requiring a Swiss bank account before mortgage approval.
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What are the average property prices in Switzerland's major cities compared to mountain resort areas?
Major Swiss cities command premium prices, with Zurich and Geneva leading the market in terms of cost per square meter.
| Location | Average Price per sqm (CHF) | Typical Property Type |
|---|---|---|
| Zurich | 13,000 - 17,000 | City apartments, condos |
| Geneva | 13,000 - 16,000 | Luxury apartments, penthouses |
| Lausanne | 10,000 - 12,000 | Lakefront properties, apartments |
| Basel | 9,000 - 12,000 | Urban apartments, townhouses |
| Prime Ski Resorts (Gstaad, Verbier, St. Moritz) | 20,000+ | Luxury chalets, ski apartments |
| Secondary Mountain Resorts | 12,000 - 18,000 | Holiday apartments, chalets |
| Rural/Smaller Towns | 6,000 - 10,000 | Houses, rural properties |
What annual taxes and recurring costs should a foreign buyer expect after purchase?
Annual property ownership in Switzerland involves several recurring costs that vary significantly by canton and property value.
Annual property tax ranges from 0.3% to 3% of the property's assessed value, depending on the canton where the property is located. Geneva and Zurich typically have higher property tax rates compared to smaller cantons.
Recurring costs include mortgage interest payments, local communal taxes, utilities, building insurance, and regular maintenance expenses. Annual wealth tax also applies to both residents and non-residents owning Swiss assets, typically ranging from 0.1% to 1% of net wealth above certain thresholds.
Rental income from Swiss properties is subject to local taxation even for non-residents, with tax rates varying by canton and income level. Non-residents must file annual tax returns in Switzerland for any rental income generated.
Additional costs include building management fees for apartments, snow removal for mountain properties, and mandatory building insurance, which can total 1-2% of property value annually.
Are there limits on how much living space or how many properties a foreigner can own in Switzerland?
Yes, strict limits apply to non-resident foreign buyers under the Lex Koller law regarding both property size and quantity.
Non-residents can typically purchase only one property in Switzerland, with maximum limits of 200 square meters of living space and 1,000 square meters of land area, though these restrictions vary by specific location and canton.
These size limitations apply specifically to residential properties in tourist zones, while commercial properties remain exempt from such restrictions. The limitations aim to prevent large-scale foreign speculation while preserving housing availability for local residents.
Swiss residents with B or C permits face no such limitations and can purchase multiple properties of any size throughout the country. EU/EFTA nationals with Swiss residency have the same property rights as Swiss citizens.
Violating these restrictions can result in forced sale of the property and significant legal penalties, making compliance essential for foreign buyers.
Can foreigners freely rent out their property in Switzerland, or are there restrictions?
Foreign-owned properties in Switzerland face significant rental restrictions, particularly for non-resident owners.
Holiday homes owned by non-residents may only be rented out short-term and cannot serve as permanent rental properties. Most cantons impose seasonal restrictions, often capping rental periods at maximum 11 months per year to ensure the property maintains its vacation home status.
Renting properties on a full-year basis is rarely permitted for non-resident foreign owners, as this would violate the Lex Koller requirement that properties serve primarily as vacation homes. Some tourist zones have additional restrictions limiting rental to specific seasons or requiring minimum owner occupancy periods.
Commercial properties owned by foreigners have no rental restrictions and can be leased freely to any tenants throughout the year. This makes commercial real estate more attractive for foreign investors seeking rental income opportunities.
It's something we develop in our Switzerland property pack.
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.
How does inheritance law in Switzerland affect foreign owners and their heirs?
Swiss inheritance law can significantly impact foreign property owners and may override foreign wills or inheritance plans.
Switzerland applies forced heirship rules to property located within its borders, potentially conflicting with inheritance laws from the owner's home country. These rules designate specific portions of an estate to certain heirs regardless of the owner's wishes expressed in a foreign will.
Foreign owners should establish a Swiss will specifically addressing their Swiss property to ensure succession planning aligns with local legal requirements. Without proper planning, default Swiss inheritance rules may apply, potentially creating complications for intended heirs.
Property inheritance by foreign heirs may trigger additional Lex Koller compliance requirements, particularly if the heirs are not Swiss residents. Inherited properties may need to be sold if the heirs cannot meet residency or other legal requirements for foreign ownership.
Consulting with Swiss legal professionals specializing in international inheritance law is essential for foreign property owners to protect their heirs' interests and ensure smooth property transfer.
What are the typical transaction fees, notary costs, and registration charges in Switzerland?
Transaction costs in Switzerland are substantial and can add 3-5% to the total property purchase price.
1. **Notary fees:** 0.2% to 0.5% of the purchase price 2. **Land registry fees:** 0.3% to 0.5% of the purchase price 3. **Transfer taxes:** 1% to 3% varying by canton 4. **Legal fees:** Approximately 1% of the purchase price 5. **VAT on new builds:** 7.7% applies mainly to new developments 6. **Real estate agent fees:** 2% to 3% if using an agent 7. **Property valuation costs:** CHF 1,000 to CHF 3,000 8. **Bank arrangement fees:** 0.5% to 1% of mortgage amountThese costs vary significantly by canton, with some regions like Geneva and Zurich typically charging higher fees. New construction properties incur additional VAT costs that can substantially increase the total investment required.
How stable is the Swiss real estate market historically, and what are the risks of price drops?
The Swiss real estate market demonstrates exceptional historical stability compared to most global markets.
Switzerland's property market has shown strong price resilience during major global financial crises, including the 2008 financial crisis and the COVID-19 pandemic. The market benefits from Switzerland's political stability, strong economy, and limited land availability, particularly in desirable locations.
Significant nationwide price drops are rare, though localized corrections can occur in overbuilt or less desirable regions. Prime locations like central Zurich, Geneva, and luxury ski resorts have maintained value appreciation over decades with minimal volatility.
Current risks include rising mortgage interest rates, macroeconomic shocks affecting wealthy international buyers, and tight regional quotas causing volatility in tourist zones where foreign buyers compete for limited inventory.
The market's stability stems from strict lending standards, conservative banking practices, and regulations like Lex Koller that limit speculative foreign investment, creating a more stable but less liquid market than many international destinations.
What exit options exist for foreigners—can they easily resell the property, and are there capital gains taxes?
Foreign property owners can resell their Swiss properties, but face specific restrictions and tax implications that affect exit strategies.
Resale of properties purchased under Lex Koller must comply with the same restrictions, meaning potential buyers must also qualify under the law's requirements. This limited buyer pool can extend marketing time and potentially affect pricing, especially for vacation homes in tourist zones.
Capital gains tax is levied at the cantonal level, typically ranging from 15% to 40% of the profit, depending on the canton and holding period. Many cantons offer taper relief, reducing tax rates for properties held longer than 5-10 years, making longer-term ownership more tax-efficient.
Additional taxes may apply if authorities consider the sale speculative, particularly for properties held less than five years. Some cantons impose higher rates on non-residents compared to Swiss residents for capital gains taxation.
Marketing and selling can take significantly longer than in more liquid markets due to the limited pool of eligible buyers, especially for properties subject to Lex Koller restrictions. Commercial properties generally offer better liquidity due to fewer ownership restrictions.
It's something we develop in our Switzerland property pack.
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.
Buying property in Switzerland as a foreigner is safe but comes with significant legal and financial complexities that require careful planning and professional guidance.
The Swiss market offers stability and prestige, but the Lex Koller law, substantial capital requirements, and limited rental flexibility make it suitable primarily for affluent buyers seeking vacation homes or commercial investments rather than traditional rental yields.
Sources
- Neho - Who Can Buy Property in Switzerland
- SwissInfo - Buying Property in Switzerland
- Beck Real Estate - Lex Koller Purchase Guide
- Properstar - Switzerland Real Estate Guide
- Global Referral Group - Complete Guide to Buying Property
- Wise - Buying Property in Switzerland
- Investors in Property - Switzerland Property Guide
- PCC Wealth - How to Buy Property in Switzerland