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Everything you need to know before buying real estate is included in our Switzerland Property Pack
Switzerland's property market offers opportunities for foreign buyers, but comes with strict regulations under the Lex Koller law. Non-resident foreigners can purchase holiday homes and apartments in designated tourist zones, while EU/EFTA residents with permits have broader purchasing rights for primary residences. The process involves obtaining special permits, meeting size restrictions, and navigating canton-specific regulations that vary significantly across the country.
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.
Foreigners can buy property in Switzerland but face significant restrictions based on residency status, with non-residents limited to holiday homes in tourist zones requiring special permits.
Transaction costs typically range 3-5% of purchase price, down payments start at 20% but often require 30-40% for foreigners, and the purchase process takes 2-4 months including permit approval.
| Buyer Category | Property Types Allowed | Key Restrictions |
|---|---|---|
| EU/EFTA with B/C Permit | Primary residence, no restrictions | Must be for own use |
| Non-resident Foreigners | Holiday homes, some apartments | Tourist zones only, 200-250m² max |
| Commercial Buyers | Business properties | No restrictions for business use |
| Non-EU/EFTA Nationals | Holiday homes with permits | Same as non-residents |
| Swiss Residents (C Permit) | All property types | Minimal restrictions |
| Temporary Residents | Limited to primary residence | Must prove residence need |
| Investment Buyers | Generally not allowed | Residential investment prohibited |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can I legally buy property in Switzerland as a foreigner?
Yes, foreigners can legally buy property in Switzerland, but the process is heavily regulated under the Lex Koller law with significant restrictions based on your residency status.
EU/EFTA nationals holding a B or C residence permit can purchase property for primary residence without major restrictions. These buyers have the same rights as Swiss citizens when buying their main home.
Non-resident foreigners and non-EU/EFTA nationals face much stricter limitations and can only buy certain types of property in designated tourist zones. You'll need special permits and can typically only purchase holiday homes or specific apartments, not investment properties.
Commercial property purchases are generally allowed without restrictions for business use, even for non-residents. This exception makes Switzerland more accessible for business investors than residential buyers.
It's something we develop in our Switzerland property pack.
What are the restrictions on the type of property foreigners can buy?
Property type restrictions depend heavily on your residency status and intended use of the property.
Non-resident foreigners can typically buy holiday homes with a maximum living space of 200-250 square meters and up to 1,000 square meters of land. Some apartments in tourist complexes are also available, but primary residences require Swiss residency.
The properties must be located in designated "tourist zones" which include popular destinations like Verbier, Zermatt, St. Moritz, and other ski resorts. Urban areas like Zurich and Geneva city centers are generally off-limits to non-resident buyers.
Investment properties for rental income are usually prohibited for non-residents. The property must be for your personal holiday use, not as a business investment generating rental income.
EU/EFTA residents with valid permits can purchase any type of residential property for primary residence without these geographic or size restrictions.
Do I need a special permit to purchase real estate, and how do I apply?
Yes, non-resident foreigners must obtain a "foreigner purchase permit" through the local cantonal authority before completing any property purchase.
The permit application process typically involves submitting documentation proving your identity, financial capacity, and intended use of the property. Your notary or estate agent usually assists with this application as part of the standard service.
Processing times vary significantly by canton, ranging from 4-12 weeks depending on local regulations and workload. Some cantons have annual quotas limiting the number of permits issued, which can create delays during peak seasons.
Required documents typically include passport copies, proof of income or assets, bank statements showing down payment capacity, and a declaration of intended use. You may also need to provide a clean criminal record from your home country.
The permit is property-specific, so you'll need a new application for each property purchase. Some cantons charge application fees ranging from CHF 500-2,000.
Which cantons are most open or restrictive for foreign buyers?
| Canton | Openness Level | Key Features |
|---|---|---|
| Valais | Very Open | Many ski resorts, higher quotas, faster processing |
| Vaud | Open | Lake Geneva region, reasonable quotas |
| Grisons | Open | St. Moritz area, established tourist zones |
| Bern | Moderate | Some tourist areas, moderate restrictions |
| Geneva | Very Restrictive | Limited tourist zones, low quotas |
| Zurich | Very Restrictive | Mainly commercial, very few residential permits |
| Basel | Restrictive | Limited options, strict requirements |
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Is there a maximum size limit on properties I can purchase?
Yes, non-resident foreigners face strict size limitations when purchasing property in Switzerland.
The standard maximum is 200-250 square meters of living space and up to 1,000 square meters of total land area per family unit. These limits apply to holiday homes and are enforced at the cantonal level.
Some cantons may allow slightly larger properties with special permits, but this requires additional justification and longer approval processes. The size restrictions are designed to prevent large-scale foreign land acquisition.
Multiple properties can sometimes be purchased if they stay within individual size limits, but total ownership across Switzerland may be monitored. Some cantons track cumulative foreign ownership in specific areas.
EU/EFTA residents with Swiss permits don't face these size restrictions when buying primary residences, only when purchasing second homes or holiday properties.
How much down payment is required and are there special banking rules?
Swiss banks typically require a minimum 20% down payment for property purchases, but foreigners often face higher requirements of 30-40% of the purchase price.
Having Swiss income, assets, or existing banking relationships significantly improves your financing terms and may reduce the required down payment to closer to the 20% minimum.
Foreign income must be documented extensively, often requiring official translations and verification from your home country's tax authorities. Bank statements covering 3-6 months are standard requirements.
Interest rates for foreigners are typically 0.5-1% higher than rates offered to Swiss residents. Some banks specialize in foreign buyer financing and may offer more competitive terms.
Currency hedging options are important if your income is in a different currency, as exchange rate fluctuations can significantly impact your mortgage payments over time.
What are average property prices per square meter in major cities and countryside?
As of September 2025, Swiss property prices vary dramatically between urban centers and rural tourist areas.
Major cities like Zurich and Geneva command CHF 11,450-21,110 per square meter for prime residential properties, with luxury areas reaching even higher prices. Lausanne follows closely with similar price ranges in desirable neighborhoods.
Rural and tourist canton prices are generally lower, ranging from CHF 6,000-10,000 per square meter in areas like Appenzell, Uri, and Glarus. However, premium ski resort properties in Verbier or St. Moritz can exceed urban prices.
Ski resort chalets and apartments often command premium prices during peak seasons, with luxury properties in Zermatt or Gstaad reaching CHF 15,000-25,000 per square meter or more.
It's something we develop in our Switzerland property pack.
What are the total transaction costs including all fees and taxes?
Total transaction costs in Switzerland typically range from 3-5% of the purchase price, which is relatively low compared to other European countries.
| Cost Component | Percentage Range | Description |
|---|---|---|
| Notary Fees | 0.5-1.0% | Legal documentation and closing |
| Transfer Tax | 1.0-3.0% | Varies by canton |
| Land Registry | 0.2-0.5% | Official registration |
| Legal Fees | 0.3-0.8% | Attorney representation |
| Banking Fees | 0.2-0.5% | Mortgage processing |
| Permit Fees | 0.1-0.3% | Foreign buyer permits |
| Survey/Inspection | 0.1-0.2% | Property evaluation |
How long does the purchase process take from offer to ownership?
The complete property purchase process in Switzerland typically takes 2-4 months from accepted offer to final ownership registration, with foreign buyers often experiencing longer timelines.
Initial stages including offer acceptance, due diligence, and permit applications usually take 4-8 weeks. The foreign buyer permit approval is often the longest single step in the process.
Notary closing and contract signing typically occur within 1-2 weeks once all permits are approved and financing is confirmed. Swiss notaries are very thorough and require all documentation to be complete.
Final registration at the Land Register takes an additional 2-4 weeks after the notary closing. Only after this registration are you the official legal owner of the property.
Peak season purchases (winter for ski properties, summer for lake properties) may experience additional delays due to higher demand and limited administrative capacity.
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.
What ongoing taxes and charges should I budget for as a foreign homeowner?
Swiss property ownership involves several annual costs that foreign buyers must budget for beyond the initial purchase.
Annual property tax rates typically range from 0.1-0.2% of the property value, varying significantly by canton and municipality. Some areas have higher rates while others offer more favorable tax treatment.
Switzerland imputes a rental value for tax purposes, meaning you'll pay income tax on the theoretical rental income your property could generate, even if you don't rent it out. This typically adds 1-3% of property value to your annual tax bill.
Property insurance, maintenance costs, and utility connections are standard expenses. Expect to budget 1-2% of property value annually for these ongoing costs.
If you're not a Swiss resident, you may face additional cantonal taxes on property ownership ranging from 0.2-1% annually depending on the location.
Can I rent out my property or are there restrictions for foreign owners?
Rental restrictions for foreign property owners in Switzerland are very strict and vary significantly by canton and property type.
Non-resident foreigners who purchase holiday homes generally cannot rent out their properties at all. The properties must be for personal use only, and rental activities are typically prohibited by the purchase permit conditions.
Some cantons completely forbid any rental activity for foreign-owned holiday properties, while others may allow very limited rental (such as a few weeks per year) with special authorization.
EU/EFTA residents with Swiss permits have more flexibility and can typically rent their primary residence, but not properties purchased under foreign buyer quotas.
Violating rental restrictions can result in forced sale of the property and significant financial penalties, making compliance essential for foreign owners.
It's something we develop in our Switzerland property pack.
What happens when I want to sell - are there capital gains taxes and restrictions?
Selling property as a foreign owner in Switzerland involves specific restrictions and tax implications that must be planned for in advance.
Most foreign buyers face a mandatory 5-year minimum holding period before being allowed to sell their property. Early resale is often completely forbidden and can result in legal complications.
Capital gains tax rates vary by canton but can reach up to 30% of the profit depending on the holding period and total gain. Longer ownership periods typically qualify for reduced tax rates.
The calculation includes the purchase price, transaction costs, and any improvements made to the property. Keeping detailed records of all expenses is crucial for minimizing tax liability.
Some cantons offer preferential treatment for properties held longer than 10-15 years, with significantly reduced capital gains tax rates or exemptions.
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.
Switzerland's property market offers unique opportunities for foreign buyers who understand the regulatory framework.
Success requires careful planning, adequate financing, and compliance with strict cantonal regulations that vary significantly across the country.
Sources
- Schraner Verbier - Foreign Property Purchase Guide
- InvestRopa - Switzerland Real Estate for Foreigners
- PropertyStar - Switzerland Real Estate Guide
- Global Referral Group - Lex Koller Law
- Investors in Property - Foreign Buyers Guide
- Lawyers Switzerland - Property Purchase Process
- Sotheby's Realty Switzerland - Second Home Guide
- Wise - Property Buying Guide Switzerland