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 Switzerland Property Pack
Switzerland offers one of Europe's most stable property markets, but foreign buyers face complex regulations under the Lex Koller law.
As of June 2025, non-resident foreigners can only purchase specific property types in designated tourist areas, while Swiss residents enjoy unrestricted buying 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.
Foreign property ownership in Switzerland is strictly regulated, with EU/EFTA residents having more rights than non-EU nationals.
Swiss residents can buy any property type, while non-residents face significant restrictions on location, size, and usage.
| Buyer Category | Property Rights | Permit Required |
|---|---|---|
| Swiss citizens & residents with C permit | Unlimited - any property type | No |
| EU/EFTA residents with B permit | Primary residence only | No |
| Non-EU residents without permit | Tourist areas only, max 200-250m² | Yes (cantonal) |
| Non-residents (all nationalities) | Second homes in designated areas | Yes (strict quotas) |
| Commercial investors | Business properties allowed | Case-by-case |
| UK nationals (post-Brexit) | Treated as third-country nationals | Yes |
| Property prices (2025) | CHF 11,450-21,110 per m² | Varies by canton |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
Can foreigners buy property in Switzerland and what's different from local buyers?
Yes, foreigners can buy property in Switzerland, but the Lex Koller law creates major differences between foreign and local buyers.
Swiss citizens and EU/EFTA nationals with a C permit can purchase any property type anywhere in Switzerland without restrictions. They enjoy the same rights as Swiss nationals, including buying multiple properties, investment apartments, and vacation homes.
Non-EU nationals without residency face the strictest limitations. They can only buy in designated tourist communes like Verbier, Zermatt, or St. Moritz, and are limited to one vacation property per family with a maximum living area of 200-250 square meters.
EU/EFTA nationals with a B permit can buy a primary residence but cannot purchase second homes or investment properties. Once they upgrade to a C permit after 5-10 years, all restrictions disappear.
UK nationals who were Swiss residents before Brexit maintain EU/EFTA status, while post-Brexit arrivals are treated as third-country nationals with stricter rules.
Do I need Swiss residency or a specific visa to buy property?
Your residency status determines what you can buy, not whether you can buy.
Non-residents can purchase property in Switzerland, but only specific types in designated tourist areas. You don't need a visa just to buy property, but having Swiss residency dramatically expands your options.
The most common permits for foreign buyers are the B permit (temporary residence) and C permit (permanent residence). EU/EFTA nationals with a B permit can buy their primary residence immediately upon arrival. Non-EU nationals typically need to wait until they obtain a C permit.
The Swiss Golden Visa (lump-sum taxation) is available for high-net-worth individuals who pay at least CHF 150,000 annually in taxes. This can facilitate property purchases but requires establishing a business or making substantial investments.
Without any permit, you're limited to buying vacation homes in tourist zones, subject to cantonal quotas that fill up quickly - some cantons only approve 20-50 foreign purchases annually.
Can I complete the purchase remotely or must I be physically present?
Physical presence is not required for most Swiss property purchases.
Over 90% of foreign buyers complete their transactions using a power of attorney, allowing a Swiss lawyer or notary to sign on their behalf. This is completely legal and widely accepted by all cantons.
The power of attorney must be properly authenticated in your home country, typically requiring apostille certification for countries that signed the Hague Convention. Your chosen representative will handle the notary appointment, payment transfers, and land registry filing.
Some banks may require in-person identification for mortgage applications, though many now accept video verification. The property viewing, negotiations, and due diligence can all be conducted remotely through real estate agents.
If you prefer to sign in person, you'll need to schedule an appointment with the cantonal notary, which typically takes 2-3 hours including document review and signatures.
What property types can foreigners buy - primary homes, investments, or vacation properties?
Your permitted property types depend entirely on your residency status.
Swiss residents with a C permit and EU/EFTA nationals with permanent residency can buy any property type: primary residences, rental investments, commercial buildings, vacation homes, or land for development. There are no restrictions on number, size, or location.
EU/EFTA nationals with a B permit can only purchase one primary residence where they actually live. They cannot buy investment properties or second homes until upgrading to a C permit.
Non-residents are restricted to:
- Holiday homes in approved tourist resorts (maximum 200-250m² living space)
- Hotel-managed apartments with mandatory rental pools
- Commercial properties for active business operations
- Plots in designated areas (maximum 1,000-1,500m² land area)
- Serviced apartments in tourist developments
Investment properties for pure rental income are completely off-limits to non-residents. Any rental of vacation homes must be short-term (under 6 months annually) and cannot be year-round.
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What are the exact steps and documents for buying property from start to finish?
The Swiss property purchase process follows a strict legal framework with these key steps.
First, obtain your residence permit if you're planning to live in Switzerland, or apply for a foreigner purchase permit (Lex Koller authorization) if buying as a non-resident. This permit application takes 2-8 weeks depending on the canton.
Essential documents you'll need include: valid passport, residence permit (if applicable), proof of funds, bank statements from the last 6 months, employment contract or income verification, and marriage certificate if buying jointly.
The purchase process follows this sequence:
- Sign a reservation agreement with 3-5% deposit (optional but common)
- Conduct property due diligence and building survey
- Apply for mortgage pre-approval if needed
- Notary drafts the purchase contract in the local language
- Review contract with translator or lawyer
- Sign at notary office or via authenticated power of attorney
- Transfer purchase price and fees to notary's escrow account
- Notary registers the transaction with the land registry
- Receive official ownership certificate (2-4 weeks later)
It's something we detail extensively in our Switzerland property pack.
Is a Swiss lawyer or notary required and what exactly do they do?
A notary is absolutely mandatory for all Swiss property transactions - no exceptions.
The notary serves as a neutral public official who ensures the legality of the transaction. They draft the official purchase contract, verify all parties' identities, confirm the seller's ownership rights, check for any liens or encumbrances, and register the transfer with the land registry.
Notary fees range from 0.1% to 1% of the purchase price depending on the canton. In Geneva, expect around 0.3%, while rural cantons may charge up to 1%. The notary holds all funds in escrow until the transaction completes.
A lawyer is not legally required but highly recommended for foreign buyers. While the notary is neutral, a lawyer represents your interests exclusively. They can review contracts before signing, negotiate terms, explain Swiss property law, and ensure compliance with foreign ownership rules.
Legal fees typically run CHF 3,000-10,000 depending on transaction complexity. For straightforward purchases, many buyers skip the lawyer, but for complex deals or if you don't speak the local language, legal representation is invaluable.
What taxes, fees and hidden costs hit foreign buyers during purchase and resale?
Budget 3-5% above the purchase price for transaction costs in Switzerland.
Property transfer tax varies dramatically by canton - from 0% in Zurich and Zug to 3.3% in Geneva and up to 3.8% in some municipalities. Most cantons charge between 1-2.5% paid by the buyer.
Additional purchase costs include:
- Notary fees: 0.1-1% of purchase price
- Land registry fees: 0.2-0.5%
- Mortgage registration: 0.1-0.3% of loan amount
- Property valuation: CHF 500-2,000
- Lawyer fees: CHF 3,000-10,000
- Translation costs: CHF 500-2,000
- Lex Koller permit: CHF 1,000-5,000
When selling, expect to pay capital gains tax ranging from 0-40% depending on how long you owned the property. Holding for over 10 years typically reduces the rate below 10%. Real estate agent commissions average 2-3% of the sale price.
Hidden ongoing costs include annual property tax (0.1-0.3% of tax value), mandatory building insurance, maintenance reserves (1% of property value annually), and communal charges for apartments.
Can foreigners get Swiss mortgages and how do I improve approval chances?
Yes, foreigners can access Swiss mortgages, but terms vary significantly by residency status.
EU/EFTA nationals with Swiss residency get nearly identical terms to locals. Non-residents face stricter requirements but can still borrow for approved vacation properties. As of June 2025, mortgage rates are historically low with 5-year fixed rates at 1.30-1.45% and 10-year fixed at 1.45-1.65%.
| Borrower Type | Maximum LTV | Required Down Payment |
|---|---|---|
| Swiss residents (C permit) | 80% | 20% (min 10% cash) |
| EU/EFTA with B permit | 80% | 20% (min 10% cash) |
| Non-EU residents | 60-70% | 30-40% (min 20% cash) |
| Non-residents | 50-60% | 40-50% (min 25% cash) |
| Debt service requirement | Max 33% of gross income | |
To improve approval chances, demonstrate stable income for 3+ years, maintain low existing debt levels, provide Swiss employment contracts, show substantial liquid assets beyond the down payment, and use a mortgage broker familiar with foreign applications. Banks particularly value Swiss income sources and long-term employment contracts.
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.
Which Swiss regions offer the best lifestyle, rental income, and growth potential?
Switzerland's property market varies dramatically between urban centers and alpine resorts.
Zurich leads for capital growth and lifestyle, with property appreciating 3-4% annually since 2020. The city offers Switzerland's highest salaries, best international connections, and top-ranked quality of life. However, yields are low at 2.59% due to high purchase prices.
Geneva attracts international organization employees and offers similar appreciation to Zurich. The rental market is extremely tight with 0.5% vacancy rates, ensuring steady income despite modest 2.54% yields.
| Location | Avg Price/m² | Rental Yield | Best For |
|---|---|---|---|
| Zurich | CHF 21,110 | 2.59% | Capital growth, expat lifestyle |
| Geneva | CHF 20,960 | 2.54% | International community |
| Zug | CHF 18,500 | 2.7% | Tax optimization, families |
| Lucerne | CHF 14,200 | 2.9% | Tourism, lifestyle balance |
| Valais resorts | CHF 12,000-25,000 | 3.2-3.8% | Vacation rentals |
| Ticino | CHF 11,500 | 3.5% | Retirees, Italian culture |
| Bern | CHF 11,450 | 2.81% | Stable government jobs |
For rental income, Valais ski resorts like Verbier and Zermatt deliver 3.5-4% yields through vacation rentals. Ticino's lakeside towns attract retirees and offer 3.5% yields with year-round demand. This is covered in detail in our Switzerland property pack.
How much does property cost across Swiss cities and regions per square meter?
Swiss property prices in June 2025 reflect strong regional variations and continued price growth.
Zurich remains Switzerland's most expensive city at CHF 21,110 per square meter for apartments, followed closely by Geneva at CHF 20,960. These prices represent 2-3% annual growth despite global economic uncertainty.
Single-family homes command premium prices: Zurich averages CHF 4.28 million, Geneva CHF 3.38 million, while the national average sits at CHF 1.22 million. The price gap between cities and rural areas continues widening.
Mid-tier cities offer better value: Basel at CHF 13,090/m², Lucerne at CHF 14,200/m², and Bern at CHF 11,450/m² for apartments. These cities provide 30-45% savings compared to Zurich while maintaining excellent infrastructure.
Tourist destinations vary wildly - exclusive resorts like St. Moritz reach CHF 25,000-35,000/m² for prime locations, while smaller Alpine villages start at CHF 8,000/m². Lakeside properties in Montreux or Lugano range from CHF 12,000-18,000/m² depending on lake views.
Where do most foreigners buy property and why do they choose these locations?
Foreign buyers concentrate in specific Swiss regions based on their status and objectives.
Geneva leads for international organization employees, hosting 40% foreign residents. The city's proximity to France, international schools, and diplomatic community creates a ready-made expat ecosystem. UN, WHO, and WTO employees drive consistent demand.
Zurich attracts finance professionals and tech workers, with Google's European headquarters and major banks creating high-paying job clusters. The city's 33% foreign population enjoys world-class infrastructure and easy European connections.
Ski resort preferences include:
- Verbier: British buyers dominate, drawn by direct Geneva airport access
- Zermatt: Year-round skiing attracts Germans and Scandinavians
- St. Moritz: Ultra-wealthy Russians and Middle Eastern buyers seeking prestige
- Gstaad: Discrete luxury preferred by European aristocracy
- Montreux: Retirees love the mild climate and Belle Époque charm
Zug's corporate tax advantages attract entrepreneurs and crypto millionaires, while Lugano's Italian atmosphere and favorable tax treaties appeal to Italian buyers seeking Swiss stability.
What mistakes and legal pitfalls trap foreign buyers and how do I avoid them?
The most expensive mistake is buying without understanding Lex Koller restrictions.
Buyers often assume they can rent their vacation home year-round, only to discover tourist properties are limited to 180 days of short-term rentals annually. Violating this leads to forced sale and hefty fines. Always verify exact rental restrictions with the cantonal authority, not just the seller.
The five-year resale restriction catches many off-guard. Non-residents cannot sell vacation homes at a profit within five years unless proving "force majeure" like job loss or divorce. Plan for long-term ownership or face selling at a loss.
Common financial pitfalls include underestimating total costs by focusing only on purchase price while ignoring the 3-5% transaction fees, failing mortgage affordability tests by not understanding the 33% income rule, and assuming foreign income counts equally when Swiss banks heavily discount non-CHF earnings.
Legal traps include signing contracts without professional translation, missing critical deadlines for permit applications, and buying in personal names instead of through proper structures. This comprehensive guide is part of 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 requires careful navigation of complex regulations, but the rewards include owning real estate in one of the world's most stable markets.
Success depends on understanding your specific buyer category under Lex Koller, choosing the right location for your goals, and working with experienced local professionals who can guide you through the Swiss property purchase process.
Sources
- Federal Authorities - Buying Property in Switzerland
- Charles Russell Speechlys - Swiss Property Law Guide
- Properstar - Switzerland Real Estate Guide
- Vischer Legal - Foreign Property Ownership
- Global Property Guide - Swiss Rental Yields
- Expatica - Swiss Mortgage Guide
- Comparis - Mortgage Rate Forecasts
- Savills - Switzerland Property Investment Guide
- Knight Frank - Switzerland Market Overview
- UBS - Property Financing in Switzerland