Property
Switzerland — Property: Buying Process
Foreigners buying property in Switzerland may need authorisation under the Lex Koller; the Federal Office of Justice says the acquisition of property by foreign nationals, companies abroad or Swiss companies under foreign control generally requires authorisation from the competent cantonal authority. EU and EFTA nationals domiciled in Switzerland, usually holding a B or C permit, are exempt. A holiday home for someone not domiciled in Switzerland may be authorised only where they have exceptionally close ties worthy of protection; holiday stays are not such ties, the home may not be rented to third parties, and it must be sold within two years if the buyer no longer uses it. Cantons set annual quotas. Notary and land-registry steps are set by cantonal law; ask the notary for a written estimate of costs.
Why this matters
The mandatory notarization step and minimum-equity mortgage rules mean a Swiss property purchase is slower and more capital-intensive up front than in many countries — buyers should budget both the 3-5% closing costs and the full 20% deposit well before house-hunting seriously.
Key facts
- Acquisition of property by foreign nationals, companies abroad or Swiss companies under foreign control generally requires cantonal authorisation (Lex Koller).
- EU and EFTA nationals domiciled in Switzerland, usually with a B or C permit, are exempt.
- A holiday home for someone not domiciled in Switzerland may be authorised only with exceptionally close ties; it may not be rented to third parties and must be sold within two years if no longer used by the buyer.
- Cantons apply annual quotas for holiday homes.
- Notary and registry steps and costs are set by cantonal law.
Steps
- Secure mortgage pre-approval — Confirm affordability and equity sourcing (savings vs. pillar 2/3a) with a lender before making an offer.
- Negotiate terms with the seller — Agree price and conditions, often via a real estate agent.
- Notary drafts the purchase deed — A notary prepares the public deed; both parties sign in the notary's presence.
- Pay the transfer tax and closing costs — Cantonal transfer tax (where applicable) and notary/registry fees are due around signing.
- Register the transfer in the Grundbuch — The notary registers the sale in the cantonal land registry, completing legal transfer of ownership.
Common mistakes
- Signing a purchase contract before checking whether Lex Koller authorisation is needed.