Citizens of Switzerland, the European Union (EU) and the European Free Trade Association (EFTA)
Any citizen of Switzerland, the EU Member States (except Croatia) or the EFTA Member States who is domiciled in Switzerland can acquire real estate without special permission.
Non-EU and non-EFTA nationals
Nationals from non-EU Member States, non-EFTA Member States or Croatia do not require special permission if they are buying a primary residence as long as:
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They have a valid residence permit (B, C or L).
- They are domiciled and live in the real estate in question.
In the case of purchasing land, all construction work must begin no later than one year after the purchase.
With regard to nationals of these countries who do not have a residence permit but who want to buy in Switzerland, they are subject to the Federal Law on the Acquisition of Non-movable Property by Persons Abroad (LFAIE), also known as the Lex Koller. They must obtain permission from the relevant authorities in each case.
The following points must also be considered when buying secondary real estate:
- According to the Lex Weber, which the citizens of Switzerland voted for on 11 March 2012, a second home can only be purchased in a municipality where the percentage of such real estate does not exceed 20%. Note that this restriction applies to all buyers, including Swiss citizens. In addition, the amount of this type of real estate open to foreign buyers is capped at 1,500 properties per year across the whole country.
- This real estate must only be used for private purposes, although there are exceptions such as non-permanent short-term rentals (less than 6 months).
- Land acquisition in the country is limited to one asset per family (meaning spouse and dependents).
- In principle, the living space in a single-family home must not exceed 200 m2 (or, in some circumstances, 250 m2).
- The surface of the land must not exceed 1,000 m2 (or 1,500 m2 in the case of villas and chalets, or 3,000 m2 in the case of a condominium).
- Any resale within 5 years of the transfer of ownership is prohibited, except in the case of death or illness, and no profit can be made on the sale.
- If the property remains vacant for too long, it may be subject to a forced sale within two years.
In the event of any doubt, the relevant authorities (the land registry office or inspectorate) will be able to confirm whether you meet all of the requirements for a potential purchase.
Purchase of commercial properties
Unlike private real estate, there are no restrictions for foreign nationals for commercial properties. These assets can be purchased directly, or through a Swiss or international legal structure. Following their purchase, they can be used either for profit-making activities or be rented out.
International officials
International officials who hold a carte de légitimation from the Federal Department of Foreign Affairs are also subject to the above regulations. Their status, nationality and the number of years that they have spent in Switzerland will also be taken into account.
Real estate acquisition: a complex issue
As we have seen above, there are several aspects to consider when purchasing real estate. It is therefore very important to be aware of the rules that could affect a purchase, especially with regard to the nationality of the buyer. If you have any queries, please feel free to contact our team and they will be more than happy to assist you.
