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Everything you need to know before buying real estate is included in our Switzerland Property Pack
Getting a mortgage in Switzerland as a non-resident is possible but comes with stricter requirements and higher costs than for Swiss residents.
Swiss banks offer mortgage financing to foreign buyers, but typically require higher down payments, charge premium interest rates, and impose additional documentation requirements for income verification and legal compliance.
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-residents can obtain Swiss mortgages with 35-50% down payments and loan-to-value ratios of 50-65%.
Major Swiss banks offer mortgages in CHF, EUR, and USD with interest rates typically 0.5-1.5% higher than resident rates.
| Requirement | Non-Residents | Swiss Residents |
|---|---|---|
| Minimum Down Payment | 35-50% | 20% |
| Maximum Loan-to-Value | 50-65% | 80% |
| Interest Rate Premium | +0.5% to +1.5% | Base rate |
| Processing Time | 6-12 weeks | 4-8 weeks |
| Swiss Bank Account Required | Yes, for mortgage servicing | Standard requirement |
| Income Documentation | Extensive foreign income proof | Standard Swiss income proof |
| Property Types Available | Limited by Lex Koller | All types |
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Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can I get a mortgage in Switzerland if I don't live there?
Yes, you can obtain a mortgage in Switzerland as a non-resident, but Swiss banks impose stricter conditions compared to resident applicants.
Major Swiss banks including UBS, Credit Suisse, and Raiffeisen offer mortgage products to foreign buyers who don't live in Switzerland. However, these banks typically require higher down payments, charge premium interest rates, and demand more extensive documentation to verify your financial stability and income sources.
Non-resident mortgages are particularly common for buyers purchasing vacation homes in ski resorts like Verbier, Zermatt, or St. Moritz, where foreign ownership is permitted under specific conditions. Swiss banks have developed specialized departments to handle international mortgage applications, recognizing the significant demand from affluent foreign buyers.
The key difference is that banks view non-residents as higher-risk borrowers due to potential difficulties in legal enforcement and collection if payments default. This risk assessment translates into more conservative lending criteria and additional safeguards throughout the mortgage process.
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What minimum down payment is usually required for non-residents?
Non-resident buyers typically need to provide a down payment of 35-50% of the property's purchase price, significantly higher than the 20% minimum required for Swiss residents.
UBS and Credit Suisse commonly require 40-50% down payments for non-resident mortgages, while smaller regional banks might accept 35% in certain circumstances. The exact percentage depends on factors including your nationality, income stability, existing relationship with the bank, and the property type and location.
For luxury properties above CHF 2 million, some banks may require down payments of 50% or higher, especially in prime locations like Geneva's lakefront or Zurich's financial district. Properties in ski resorts often fall into this category due to their high values and seasonal income potential.
This higher down payment requirement serves multiple purposes: it reduces the bank's exposure to risk, demonstrates your serious financial commitment, and provides a larger equity cushion against potential property value fluctuations in the Swiss real estate market.
How much can I borrow compared to the value of the property?
Non-residents can typically borrow 50-65% of the property's value, compared to up to 80% for Swiss residents.
The loan-to-value (LTV) ratio for non-resident mortgages is inversely related to the down payment requirement. If you're putting down 40%, you can borrow 60% of the property value. Most Swiss banks cap non-resident LTV ratios at 65% maximum, with many preferring to stay closer to 50-60% for risk management purposes.
Swiss banks also apply strict affordability calculations, requiring that total housing costs (mortgage payments, maintenance, insurance, taxes) don't exceed 33% of your gross annual income. For non-residents, some banks apply even more conservative ratios of 25-30% to account for currency fluctuation risks and potential income instability.
The property's location and type significantly influence the LTV ratio. Banks are more generous with mortgages for properties in established, liquid markets like Zurich or Geneva compared to remote mountain chalets that might be harder to sell if foreclosure becomes necessary.
Do banks in Switzerland require proof of income from my home country?
Yes, Swiss banks require extensive documentation of your income from your home country, including tax returns, employment contracts, and bank statements spanning 2-3 years.
You'll need to provide certified translations of all financial documents into German, French, or Italian (depending on the bank's location), along with apostilled or notarized copies. Employed individuals must submit employment contracts, recent pay slips, and confirmation letters from employers detailing job stability and income continuity.
Self-employed applicants face more stringent requirements, needing to provide audited financial statements, business tax returns for the past 3 years, and proof of business registration. Banks often require additional documentation showing the nature of your business and its stability in your home market.
Some banks also request proof of existing assets and investments beyond the property purchase, wanting to see liquid reserves equivalent to 6-12 months of mortgage payments. This requirement helps demonstrate your ability to service the mortgage even if your primary income experiences temporary disruption.
Banks may also require income verification through your home country's banking system, potentially requesting statements directly from your primary bank to confirm the authenticity of provided documents.
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Which currencies are available for non-resident mortgages, and can I borrow in Swiss francs?
Swiss banks offer non-resident mortgages in Swiss francs (CHF), euros (EUR), and US dollars (USD), with CHF being the most common and often preferred option.
| Currency | Typical Interest Rate Range | Advantages | Considerations |
|---|---|---|---|
| Swiss Franc (CHF) | 2.5-4.0% | No currency risk for Swiss property | Higher rates for non-residents |
| Euro (EUR) | 3.0-4.5% | Familiar for EU residents | Currency fluctuation risk |
| US Dollar (USD) | 3.5-5.0% | Suitable for US income earners | Significant currency risk |
| British Pound (GBP) | 4.0-5.5% | Available from select banks | Limited availability, high risk |
| Japanese Yen (JPY) | Variable | Historically low rates | Very limited availability |
Borrowing in CHF eliminates currency risk since your property asset and mortgage liability are in the same currency. However, if your income is in a different currency, you'll face ongoing exchange rate exposure on your monthly payments.
Banks typically offer the most competitive rates for CHF mortgages and may require additional hedging arrangements or higher down payments for foreign currency mortgages to mitigate their own currency exposure.
Are there restrictions on which types of property non-residents can buy in Switzerland?
Yes, the Lex Koller law significantly restricts which properties non-residents can purchase, limiting options primarily to vacation homes in designated tourist areas and existing apartments in certain municipalities.
Non-EU citizens can typically only buy properties designated as vacation homes in tourist municipalities, which include popular destinations like Verbier, Zermatt, St. Moritz, Gstaad, and parts of the Bernese Oberland. These properties must be used primarily for personal vacation purposes, not as permanent residences or pure investment properties.
EU/EFTA citizens have broader purchasing rights but still face restrictions on primary residences outside their canton of residence. They can generally buy apartments (but not land) in most municipalities, subject to local approval processes.
Primary residences, agricultural land, and commercial properties are generally off-limits to non-residents. Some cantons have additional restrictions, and certain municipalities maintain waiting lists or quotas for foreign buyers.
Banks are well-versed in these restrictions and will only provide mortgages for properties that non-residents can legally purchase, making legal compliance part of their mortgage approval process.
Do I need special permits under the Lex Koller law to buy property as a foreigner?
Yes, most foreign buyers need authorization under the Lex Koller law before purchasing property, and this permit approval is typically required before banks will approve mortgage financing.
The permit application process involves submitting detailed documentation to cantonal authorities, including proof of intended use, financing arrangements, and compliance with local regulations. Processing times typically range from 4-12 weeks, depending on the canton and property type.
EU/EFTA citizens have simplified procedures in many cases but still need permits for certain property types or locations. Non-EU citizens face more extensive requirements and must demonstrate that their purchase serves legitimate vacation or personal use purposes rather than pure investment.
Some tourist municipalities have streamlined processes for properties clearly designated as vacation homes, while others maintain strict quotas limiting the number of permits issued annually. Banks typically require proof of permit approval or at minimum a confirmation that the permit will be granted before finalizing mortgage terms.
Working with local legal counsel experienced in Lex Koller requirements is essential, as permit denial would void your mortgage application and potentially result in forfeited deposits.
What interest rates do Swiss banks typically offer non-residents, and how do they compare to residents?
As of September 2025, non-residents typically pay interest rates 0.5-1.5 percentage points higher than Swiss residents, with non-resident rates ranging from 2.5-4.5% for CHF mortgages.
Swiss resident mortgage rates currently range from 1.8-3.0% for fixed-rate mortgages, while non-residents can expect rates of 2.5-4.0% for comparable products. The premium reflects banks' assessment of higher risk associated with foreign borrowers and potential collection difficulties.
Variable rate mortgages for non-residents typically start around 2.8-3.5%, compared to 2.0-2.8% for residents. Fixed-rate terms (5, 10, or 15 years) generally carry premiums of 0.8-1.2% over resident rates, with longer-term fixed rates showing larger spreads.
Your specific rate depends on factors including down payment size, income stability, existing banking relationship, property location, and loan amount. Borrowers with substantial assets under management with the lending bank often secure more favorable rates.
Private banking clients or those with significant wealth may access preferential rates closer to resident levels, particularly if they maintain substantial deposits or investment portfolios with the lending institution.
Are there additional fees, taxes, or insurance costs that apply specifically to non-resident buyers?
Yes, non-resident buyers face several additional costs including higher property transfer taxes, mandatory insurance requirements, and elevated banking fees that can add 2-4% to the total acquisition cost.
1. **Property Transfer Taxes**: Non-residents often pay higher transfer tax rates, typically 1-3% of purchase price depending on canton, compared to 0.5-2% for residents. 2. **Banking Fees**: Mortgage arrangement fees for non-residents range from 0.5-1.5% of loan amount, compared to 0.2-0.8% for residents. 3. **Legal and Administrative Costs**: Lex Koller permit applications cost CHF 2,000-5,000, plus legal fees for compliance verification. 4. **Insurance Requirements**: Banks typically require comprehensive property insurance, life insurance, and sometimes mortgage payment protection insurance for non-residents. 5. **Ongoing Account Fees**: Swiss bank accounts required for mortgage servicing often carry higher monthly fees for non-residents, ranging from CHF 50-200 per month.Some cantons impose additional registration fees for foreign property owners, and notary fees may be higher for complex international transactions requiring multiple language translations and legal verifications.
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How long does the mortgage approval process usually take for non-residents?
The mortgage approval process for non-residents typically takes 6-12 weeks, compared to 4-8 weeks for Swiss residents, due to additional documentation requirements and international verification procedures.
The timeline breaks down as follows: initial application review (1-2 weeks), income and asset verification (2-4 weeks), property valuation and legal review (2-3 weeks), and final approval and documentation (1-3 weeks). Complex cases involving multiple income sources or unique property types may require additional time.
Banks need extra time to verify foreign income documentation, obtain translated and apostilled documents, and sometimes coordinate with correspondent banks in your home country. Properties requiring Lex Koller permits add 4-12 weeks to the timeline, as mortgage approval often cannot be finalized until permit approval is confirmed.
To expedite the process, prepare all documentation in advance, work with banks that have established non-resident mortgage departments, and consider engaging local mortgage brokers who specialize in international transactions.
Some banks offer conditional pre-approval letters that can be issued within 2-3 weeks, helping you make competitive offers while the full approval process continues in parallel.
Do I need a Swiss bank account to get and service a mortgage there?
Yes, Swiss banks require you to open and maintain a Swiss bank account for mortgage servicing, including monthly payment processing and escrow management for taxes and insurance.
The bank account serves multiple functions: automatic mortgage payment deduction, property tax and insurance escrow management, and compliance with Swiss banking regulations for mortgage administration. Most banks require maintaining a minimum balance equivalent to 2-6 months of mortgage payments in this account.
Account opening requires the same documentation as mortgage applications, including proof of identity, income verification, and source of funds declarations. Non-resident accounts typically carry higher monthly fees (CHF 50-200) compared to resident accounts.
Some banks offer package deals combining mortgage and banking services with reduced fees for maintaining higher balances or multiple products. Private banking clients may access premium account features with dedicated relationship managers.
The account must remain active throughout the mortgage term, as banks use it for all property-related financial transactions and regulatory reporting requirements under Swiss banking laws.
What happens with my mortgage if I later decide to move to Switzerland and become a resident?
Converting to Swiss residency typically allows you to renegotiate your mortgage terms to access resident rates and conditions, potentially reducing your interest rate by 0.5-1.5 percentage points.
Upon obtaining Swiss residency, you can request mortgage restructuring to resident terms, including lower interest rates, reduced insurance requirements, and access to higher loan-to-value ratios for future refinancing. Banks generally accommodate these requests positively as resident mortgages represent lower risk.
The conversion process requires updating your documentation with proof of Swiss residency, revised income verification showing Swiss-source income, and potentially new property valuations if significant time has passed. Some banks waive restructuring fees for existing customers converting to resident status.
Becoming a Swiss resident also removes Lex Koller restrictions, allowing you to purchase additional properties or convert vacation homes to primary residences. This expanded purchasing power can be valuable for property portfolio expansion.
However, changing from non-resident to resident status may affect your tax obligations both in Switzerland and your previous country of residence, requiring careful tax planning to optimize your overall financial position.
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.
Obtaining a mortgage in Switzerland as a non-resident requires careful planning and higher financial commitments than resident purchases.
While possible, non-resident mortgages come with stricter terms, higher down payments, and premium interest rates that reflect the increased risk banks associate with foreign borrowers.