Switzerland consistently ranks at the top for expats, thanks to its wealth, high standard of living, and competitive wages, not to mention the stunning landscapes. Many of the world’s most affluent individuals live, do business, or vacation in Switzerland, making it one of the most desirable places to call home.
However, paradise comes with a price. Life in Switzerland is notoriously expensive, and most foreigners will need a salary well above the average to live comfortably—and significantly more to aim for permanent residency.
Can a foreigner buy property in Switzerland?
Purchasing property in Switzerland as a foreign national involves specific regulations, and not everyone can buy real estate freely. Foreign buyers must obtain authorization before acquiring property, depending on their nationality and residency status. Importantly, purchasing property in Switzerland does not grant a residence permit, so prospective buyers must consider additional residency requirements if they plan to live there.
Authorization
The authorization process is designed to prevent excessive foreign ownership of Swiss real estate and to protect the national territory. Not all foreign nationals need authorization; this requirement largely depends on the buyer’s nationality and residency status in Switzerland. Here’s a breakdown of the authorization requirements for different foreign nationals:
EU/EFTA Nationals Living in Switzerland
Nationals of EU or EFTA countries residing in Switzerland enjoy the same rights as Swiss citizens when purchasing property and do not need authorization.
UK Nationals Resident in Switzerland
UK nationals covered by the Agreement on Acquired Citizens’ Rights can buy property in Switzerland without authorization. If you need clarification on your eligibility, consult the canton authority where you plan to purchase. However, UK nationals not covered by this agreement must follow the same conditions as non-EU/EFTA nationals.
Non-EU/EFTA Nationals Living in Switzerland
Non-EU/EFTA nationals need authorization for certain types of real estate:
– A holiday home (with limited rental allowances)
– Residential units in a serviced apartment building
– A second home (not allowed to be rented)
However, no authorization is needed to purchase a primary residence or land for building a primary residence, provided these conditions are met:
– Holding a valid residence permit, usually a B permit (C permit holders are treated differently).
– Intention to live in the home without renting it out.
– Start the construction within one year if you purchase land.
Holders of a C Permit
Foreign nationals with a permanent residence permit (C permit) can purchase property in Switzerland without authorization and have the same rights as Swiss citizens.
Cross-Border Commuters
If you are an EU/EFTA national working in Switzerland with a G permit, you can buy a secondary home near your workplace without authorization. However, the property cannot be rented while you’re employed as a cross-border commuter.
Foreign Nationals Living Abroad
Apart from cross-border commuters, foreign nationals residing outside Switzerland require authorization to buy property. This rule also applies to UK nationals covered by the Agreement on Acquired Citizens’ Rights.
Restrictions on Holiday Homes
The Swiss government imposes an annual national quota on holiday homes or serviced apartments that can be sold to foreign buyers. The quota is 1,500 properties per year, with limits allocated to each canton. Certain cantons, such as Geneva and Zurich, do not allow the sale of holiday homes to foreign nationals.
For foreign nationals purchasing a second home, there are specific conditions:
– The property must be located in a designated tourist area.
– Living space cannot exceed 200m², and the land area is limited to 1,000m².
– The property may only be rented temporarily if it’s a holiday home and not at all if it’s a second home.
– Foreign nationals are limited to one holiday or second home in Switzerland.
Swiss law also prohibits building new second homes in communes where more than 20% of properties are classified as secondary residences.
Real Estate for Professional Use
Regardless of status, foreign nationals do not require authorization to purchase real estate for professional, commercial, or industrial purposes. The only exceptions are properties intended for construction, trade, or rental housing, which may have additional requirements.
Best cities to live in
Geneva
Situated along the stunning shores of Lake Geneva, this multicultural city has long been a top choice for expats in Switzerland. Geneva, a French-speaking hub, hosts some of the world’s most prestigious organizations, including the United Nations, the International Red Cross and Red Crescent Movement, and the World Health Organization. As a result, it attracts a large community of diplomats and officials, forming a significant part of the expat population.
Winterthur
Often overlooked by expats, Winterthur is a hidden gem in Switzerland’s German-speaking region. As the country’s sixth-largest city, it boasts a surprisingly vibrant expat community. Winterthur offers a welcoming atmosphere, ideal for settling into Swiss life. It is only a 20-minute train ride from Zurich, making it a perfect blend of small-town charm with easy access to big-city amenities.
Bern
Expats may be surprised to learn that Switzerland’s capital is not Geneva or Zurich but the quaint city of Bern. Near the linguistic border between French—and German-speaking Switzerland, Bern houses the Swiss parliament and boasts a UNESCO World Heritage-listed city center. Known for its excellent shopping and famous bearpit—home to the city’s iconic bears—Bern is rich in history and charm.
Lugano
There’s nowhere quite like Lugano. Located along the northern edge of picturesque Lake Lugano, it’s the capital of Italian-speaking Switzerland. Often likened to Milan, which is only an hour’s drive across the border, Lugano exudes a unique blend of Swiss and Italian cultures. From its beautiful architecture to lively café culture and warm Mediterranean climate, Lugano offers a taste of la dolce vita in a Swiss setting.
Zug
Technically a town, Zug is a favored spot for expats seeking a quieter pace of life. This German-speaking area is between Zurich and Lucerne and offers an appealing alternative to busier cities. Zug is surprisingly multicultural despite its small size, with a large expat community among its 30,000 residents. With easy access to both urban centers and the scenic Swiss countryside, Zug offers the best of both worlds.
Frequently Asked Questions
Does buying property in Switzerland grant residency?
No, purchasing property does not entitle a foreign national to a residence permit. Residency must be obtained through separate immigration processes.
Can foreign nationals buy agricultural land in Switzerland?
Generally, agricultural land is restricted, and foreign nationals cannot purchase it without special permission.
What are the restrictions on renting out holiday or second homes?
Holiday homes may be rented temporarily, but second homes purchased by foreign nationals cannot be rented out.
Do cross-border commuters from non-EU/EFTA countries need authorization to buy property?
Non-EU/EFTA cross-border commuters generally need authorization to purchase property unless they hold a G permit and meet specific criteria.
Can foreigners purchase commercial real estate?
Yes, foreigners can purchase commercial real estate in Switzerland without authorization, except for trade or rental accommodation properties.
Switzerland’s property laws for foreign nationals are designed to balance foreign ownership with protecting local housing markets. While EU/EFTA nationals and particular UK residents have fewer restrictions, others may face limitations based on property type and location. For those looking to buy property in Switzerland as a primary residence or an investment, understanding these guidelines is essential to make informed and compliant property decisions.
