How to buy property in Switzerland

How to buy property in Switzerland

If you are a foreigner looking to buy property in Switzerland, you have come to the right place! If you are a Swiss citizen, then the same steps apply to you, except you can buy property anywhere you like!

If you are a non-resident, then you are limited to what and where you can buy property. We will go over the property that is available and the process of buying a property in Switzerland. 

What can I buy

Foreigners are only allowed to buy a residential property in a tourist area. Foreigners can also buy in many Swiss resorts since they are in tourist areas. 

Property in Switzerland

Foreigners can buy ski resorts in the following: 

  • Cantons Bern
  • Graubundedn
  • Obwalden
  • Uri
  • Vaude 
  • Valais

You can not buy a property in Geneva, Basel, Zurich, Zug and other cities in Switzerland unless you are Swiss or hold a Swizz Residence Permit. 

Parties involved

Property in Switzerland

Source: mashvisor

Throughout the buying process, you will meet quite a bit of people on the way. Here are some parties involved, and you typically won’t need anyone else other than a translator. 

Agent

Your agent is the first person you will meet is your property agent. They can show you properties that are available for you and will be needed to make an offer. 

Once the offer is accepted, you will need to find a mortgage provider before meeting your next party. 

Notary

The notary is the mediator or communicator between the buyer (you) and the vendor (seller). The notary will help you with the last official documents. The notary can also be a negotiator between both parties if there is a disagreement. 

Vendor

Lastly, the vendor! The vendor is the person who is selling the property. You will meet this person earlier on and can be anytime before and after the offer. 

If you and your vendor ever run into a disagreement, then your notary is there to step in. 

Steps to Buy Property in Switzerland

Before these steps, it is assumed that you planned your money ahead of time and found property. Suppose you have not done that, then no worries. If you are looking for an estimate of the costs, you can always look online for available properties. 

Once you have set aside your budget, you will need a property agent to help you find available properties. 

1. Make an offer

Before these steps, it is assumed that you planned your money ahead of time and found property. Suppose you have not done that, then no worries. If you are looking for an estimate of the costs, you can always look online for available properties. 

Once you have set aside your budget, you will need a property agent to help you find available properties. 

Make an offer

Source: meganproctor

Once you have decided on a property, your property agent will help you make an official offer. This shows your interest in the property and is the first step in the home buying process.

2. Sign a reservation contract

Sign a contract

Source: myadultattorney

The reservation contract is an official document that reserves the property while you are looking for a mortgage. 

The document states that the developer or vendor can not sell the property while preparing your finances. This contract takes the property off the market. 

3. Apply for a mortgage

Apply for a mortgage

Swiss banks can lend up to 70% of the purchase price if they choose to. This is not guaranteed it will depend on your financial situation. 

We recommend finding a mortgage provider within the area of your property. You can also find providers who speaks your language, but you will need a translator if not. 

4. Appointed Notary

Appointed Notary

When your mortgage offer has been secured, a Swiss notary will be appointed to you. The notary will help you manage the sale and is acting on behalf of the purchaser and vendor. 

You will not have to appoint a notary since your agent will take care of this. To clarify, the notary will act on behalf of both parties.  

5. Foreigner purchase permit

Foreigner purchase permit

Source: capablegroup

The notary will collect all necessary information to apply for a foreigner purchase permit and sale deed. The notary is in charge of sending off the application and will usually take 2-4 weeks. 

Your application will only be rejected if you already own another property in Switzerland. 

6. Signing the deed

Signing the deed

When the permit is secured, the deed of sale needs to be signed within 30 days. The notary is also in charge of this registration and will communicate with the bank. 

7. Registration

Registration

Source: diversed

The sale is written in the Land Register. It which can also take a few weeks. However, many vendors and buyers will agree to hand over the keys and responsibilities when the signing is sure to happen. 

Although the property is not officially yours until it is registered, if you are confused or need to be on the property earlier, I would speak to your team. 

Conclusion

Overall, buying property is relatively quick and easy compared to many places that may require more documents. The first step is figuring out where you want to buy the property, and you have to be careful if you are a foreigner because you are limited. 

Luckily you are limited to the most beautiful areas in Switzerland, so it’s not a loss. Good luck with your process, and I hope you enjoy living in Switzerland.

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