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Foreigners can legally buy houses in Switzerland, but only under strict restrictions set by the Lex Koller regulation. Most non-resident foreigners are limited to buying designated holiday homes in specific tourist zones, while Swiss residents with permits have broader property rights.
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.
Non-resident foreigners face significant restrictions when buying property in Switzerland, limited to holiday homes in tourist zones with size caps of 200-250m² and land limits of 1,000m².
Swiss residents with B or C permits enjoy much broader property rights, including the ability to buy primary residences and investment properties without the same restrictions.
| Buyer Type | Property Types Allowed | Size Restrictions | Key Limitations |
|---|---|---|---|
| Non-resident Foreigners | Holiday homes in tourist zones only | Max 200-250m² living area, 1,000m² land | One property max, no long-term rentals |
| EU/EFTA Residents (B permit) | Primary residence, limited investment | No size restrictions | Must maintain Swiss residency |
| Long-term Residents (C permit) | Primary residence, investment properties | No size restrictions | Full property rights similar to citizens |
| Swiss Citizens | All property types unrestricted | No restrictions | Complete property ownership freedom |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can foreigners legally buy a house in Switzerland, and if so, under what exact conditions?
Yes, foreigners can legally buy houses in Switzerland, but under strict conditions governed by the Lex Koller regulation.
Non-resident foreigners are restricted to purchasing designated holiday homes or secondary residences in specific tourist zones only. The Swiss Federal Council maintains annual quotas that limit the total number of permits issued to foreigners each year, with allocations distributed by canton.
These properties must be located in areas officially designated as tourist regions, and the purchase requires obtaining a federal authorization permit before completing the transaction. The entire process involves extensive documentation and can take several months to complete.
Swiss residents with valid permits have significantly broader rights and can purchase primary residences without these restrictions. The type of permit you hold determines your exact property ownership rights in Switzerland.
As of September 2025, the regulations remain strictly enforced with no indication of liberalization in the near future.
Do I need to be a resident or can I buy property as a non-resident?
Both residents and non-residents can buy property in Switzerland, but with vastly different rights and restrictions.
Non-residents can only purchase holiday homes or secondary residences in designated tourist zones. You cannot buy a primary residence, investment property for long-term rental, or commercial property intended for residential use as a non-resident.
Swiss residents with EU/EFTA B permits can buy primary residences without restrictions but face limitations on investment properties. Those with C permits (long-term residents) enjoy nearly the same property rights as Swiss citizens, including the ability to purchase investment properties.
The residency status is determined by your legal registration in Switzerland and the type of permit you hold, not just physical presence in the country.
It's something we develop in our Switzerland property pack.
What types of properties are foreigners allowed to buy in Switzerland—can it be a primary residence, a holiday home, or an investment property?
| Property Type | Non-resident Foreigners | Swiss Residents (B permit) | Swiss Residents (C permit) |
|---|---|---|---|
| Primary Residence | Not allowed | Allowed | Allowed |
| Holiday Home/Secondary Residence | Allowed in tourist zones | Allowed | Allowed |
| Investment Property (rental) | Not allowed | Limited cases only | Allowed |
| Commercial Property (business use) | Allowed for business only | Allowed | Allowed |
| Mixed-use Property | Commercial part only | Allowed | Allowed |
| Agricultural Land | Not allowed | Special restrictions apply | Special restrictions apply |
| Forest Land | Not allowed | Special restrictions apply | Special restrictions apply |
Is there a limit to the size of the property a foreigner can purchase, for example in square meters or number of rooms?
Yes, non-resident foreigners face strict size limitations when purchasing property in Switzerland.
The maximum living area is typically limited to 200 square meters of net habitable space, though some cantons may extend this to 250 square meters with special approval. The land portion cannot exceed 1,000 square meters in most cases.
These size restrictions apply only to the residential components of the property. If you purchase a property with both residential and commercial elements, the commercial portion doesn't count toward these limits.
Swiss residents with valid permits face no size restrictions on their property purchases, whether for primary residences or investment properties.
The size limitations are strictly enforced, and exceeding them without proper authorization can result in forced sale of the property.
Are there specific cantons or regions in Switzerland that allow or restrict foreign property ownership more than others?
Yes, foreign property ownership rules vary significantly between Swiss cantons, with some being much more restrictive than others.
Cantons like Geneva and Zurich maintain stricter policies and often prohibit or severely limit foreign ownership in many areas. These urban cantons prioritize local housing availability over foreign investment.
Tourist-oriented cantons such as Valais, Graubünden, Vaud, and parts of Zug are generally more open to foreign ownership, particularly in established resort areas like Verbier, St. Moritz, Gstaad, and Zermatt.
The federal quota system allocates a specific number of permits to each canton annually, and some cantons exhaust their quotas quickly while others may have availability throughout the year.
Mountain resort areas typically offer the most opportunities for foreign buyers, while urban centers and agricultural regions maintain the strictest restrictions.
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How much money do I need as a minimum down payment if I want to buy a house in Switzerland as a foreigner?
Foreign buyers typically need a minimum down payment of 20% of the purchase price to secure a Swiss mortgage.
For non-resident foreigners, banks often require higher down payments, sometimes 25-30%, due to increased lending risk. Swiss banks also demand proof of stable income from your home country and may require additional guarantees.
The down payment must come from your own funds and cannot be borrowed money. Swiss banks verify the source of funds as part of their anti-money laundering requirements.
Beyond the down payment, you'll need additional funds for transaction costs, which typically range from 3-7% of the purchase price, including notary fees, property transfer taxes, and registration costs.
Cash purchases are possible but uncommon, and some sellers may actually prefer buyers with mortgage pre-approval as it demonstrates serious financial commitment.
What are the exact restrictions on financing—can foreigners get a Swiss mortgage, and what are the typical interest rates and conditions?
Foreigners can obtain Swiss mortgages, but face stricter requirements compared to Swiss residents.
Non-resident foreigners must provide extensive documentation including proof of income from their home country, employment contracts, tax returns, and bank statements spanning multiple years. Swiss banks typically require debt-to-income ratios below 33% for foreign applicants.
Interest rates for foreigners are generally 0.25-0.75% higher than rates offered to Swiss residents, currently ranging from 2.5-4.5% depending on the term and individual circumstances as of September 2025.
Mortgage terms are typically limited to 15-20 years for non-residents, compared to up to 25 years for residents. Banks may also require life insurance policies and additional collateral.
It's something we develop in our Switzerland property pack.
How much property transfer tax, notary fees, and other transaction costs should I expect to pay when buying in Switzerland?
Total transaction costs when buying property in Switzerland typically range from 3-7% of the purchase price, varying significantly by canton.
Property transfer taxes vary by canton, generally ranging from 1.5-3.5% of the purchase price. Zurich charges around 3%, Geneva approximately 3%, while Valais is closer to 2%.
Notary and registration fees typically total 1-2.5% of the purchase price. These include document preparation, property registration, and legal verification costs that are mandatory for all property transfers.
Additional costs include real estate agent commissions (if applicable), legal fees for due diligence, property surveys, and permit application fees for foreign buyers. These combined typically add another 1-3% to the total cost.
Some cantons also charge separate registration fees and administrative costs that can add several thousand Swiss francs to 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.
If I buy a house in Switzerland as a foreigner, am I allowed to rent it out short-term or long-term?
Rental restrictions for foreign property owners in Switzerland depend heavily on your residency status and the type of property purchased.
Non-resident foreigners who buy holiday homes are generally prohibited from long-term rentals. Short-term rentals (such as Airbnb) may be permitted in tourist zones, but typically with restrictions on the number of rental days per year and licensing requirements.
Many cantons limit short-term rentals to 90-180 days per year for properties owned by non-residents. Violations can result in hefty fines and forced sale of the property.
Swiss residents with B or C permits can rent out their properties according to standard cantonal rental regulations, which vary by location but generally allow both short-term and long-term rentals.
Before renting, check specific municipal regulations as some towns in tourist areas have implemented additional restrictions or moratoriums on short-term rentals.
Are there annual ownership costs or taxes specific to foreigners that I should know about?
Foreign property owners in Switzerland face several annual costs and taxes, some of which are specific to non-residents.
Annual property taxes vary by canton and commune, typically ranging from 0.1-0.3% of the property's assessed value. These rates apply equally to Swiss and foreign owners.
Non-resident foreign owners may face additional wealth taxes in their home countries on their Swiss property, creating potential double taxation issues. Some tax treaties provide relief, but this varies by country.
Swiss tax residents (including foreign residents) must pay imputed rental value tax, where the property is taxed as if generating rental income at market rates, even if used as a primary residence.
Maintenance costs, insurance, and utilities are the same for all owners regardless of nationality, but foreign owners may need to hire local property management services, adding 1-3% of property value annually.
What happens if I want to sell my Swiss property later—are there capital gains taxes or resale restrictions?
Selling Swiss property as a foreigner involves capital gains taxes and potential resale restrictions that vary by canton and holding period.
Capital gains tax rates range from approximately 10-40% depending on the canton and how long you've owned the property. Shorter holding periods typically face higher tax rates, with some cantons imposing minimal taxes after 10+ years of ownership.
Some cantons impose minimum holding periods before resale without penalty, typically 2-5 years. Selling before this period may result in additional penalties or higher tax rates.
Non-resident sellers often face withholding taxes, where cantons retain a portion of sale proceeds to guarantee payment of capital gains taxes. This can range from 10-25% of the sale price.
It's something we develop in our Switzerland property pack.
How do inheritance rules and property rights work for foreign owners if something happens to me?
Inheritance rules for foreign-owned property in Switzerland follow Swiss law unless specifically governed by international treaties or valid foreign wills.
Foreign heirs who inherit Swiss property may keep it even without Swiss residency, but they cannot expand their ownership or purchase additional properties under the inheritance exception.
If multiple heirs inherit the property, they may need to sell if they cannot obtain the necessary permits to maintain joint foreign ownership, as the one-property rule still applies to inherited properties.
Swiss inheritance law includes forced heirship rules that may override foreign wills, potentially affecting how you can distribute your Swiss property. Consulting with Swiss legal experts for estate planning is essential.
Some bilateral treaties between Switzerland and other countries provide specific inheritance protections, but these vary significantly by nationality and should be verified for your specific situation.
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.
Foreign property ownership in Switzerland remains highly regulated, with significant differences between residents and non-residents.
Understanding these restrictions and costs upfront is crucial for making informed investment decisions in the Swiss property market.
Sources
- PCC Wealth - How to Buy Property in Switzerland
- Properstar - Switzerland Real Estate Guide
- Global Referral Group - Complete Guide to Buying Property in Switzerland
- Veles Club - Switzerland Property Investment
- Investors in Property - Switzerland Restrictions
- Immigrant Invest - Switzerland Real Estate Guide
- Global Referral Group - Swiss Property Laws
- Swiss Federal Office of Justice - Property Acquisition
- Naef Prestige - Buying Property as a Foreigner
- Lawyers Switzerland - Property Purchase Guide