Types of Properties Available to Foreign Buyers
Foreign buyers interested in property in Switzerland have access to a diverse range of real estate options, each with its own set of regulations and considerations. Understanding the types of properties available—and the rules that apply to each—can help you make informed decisions and streamline your property purchase.
Below are the most common types of properties available to foreign buyers.
Primary Residence (For Foreign Residents)
Foreigners who live and work in Switzerland with a valid residence permit can typically buy a primary residence without major restrictions. This property must be used as the buyer’s main home.
In practice, many expats living in cities such as Geneva or Lausanne purchase apartments or houses in the same way as Swiss citizens.
Key points to know:
- The property must be your main place of residence
- Government authorization is usually not required
- Financing through a Swiss mortgage is often possible
However, the property generally cannot be used purely as a rental investment.
Holiday Homes in Tourist Areas
Non-resident foreigners are often allowed to buy holiday homes, but only in approved tourist destinations.
These properties are typically apartments or chalets located in well-known resort areas such as Verbier, Zermatt, or Crans-Montana.
There are several limitations to consider:
- The property must be located in a designated tourist zone
- Living space is often limited (commonly around 200 m²)
- Each canton applies annual quotas for foreign buyers
Because of these limits, holiday homes available to foreign buyers can be competitive to secure.
Apartments in Designated Resort Developments
In some regions, foreign buyers can purchase apartments in large resort developments specifically approved for international ownership.
These projects are designed to attract global buyers and often include:
- serviced apartments
- ski residences
- managed rental programs
Although these properties are more accessible to non-residents, they still fall under regulations linked to Lex Koller.
Investment Properties (Limited Access)
For non-resident foreigners, purchasing property purely as an investment or rental building is generally restricted.
Large residential buildings, land for development, or commercial investment properties are usually reserved for:
- Swiss citizens
- Swiss companies
- Foreign residents living in Switzerland
Foreign residents may sometimes purchase additional properties depending on their residence permit and the regulations of the canton where the property is located.
Step-by-Step Process for Buying Property in Switzerland
1. Define Your Residency Status and Eligibility
If you are residing abroad, you are considered a foreigner and are subject to specific authorization requirements when buying property in Switzerland. Determine if you hold a Swiss residence permit (B, C, or L) or if you are a non-resident foreign national. This affects your eligibility and whether you need authorization under Lex Koller.
2. Choose the Property and Canton
Select the type of real estate properties (residential, commercial, holiday home) and the canton where you want to purchase. Note that some cantons have stricter rules on holiday homes and secondary residences.
3. Apply for Authorization (If Required)
Non-residents must apply to the cantonal authorities for authorization to acquire residential real estate or holiday homes. In exceptional circumstances, authorization may be granted for acquisitions that are otherwise restricted. This process can take several months.
4. Sign the Reservation Agreement
Once authorization is granted, you sign a preliminary purchase agreement or reservation contract, often accompanied by a reservation fee paid to the notary.
To complete the transaction, the seller must also sign the notary's Deed of Sale—this 'seller sign' step is essential for the official transfer of ownership.
5. Finalize Financing with a Swiss Bank
Swiss banks typically provide mortgage financing up to 80% of the property's own valuation for residential real estate, and up to 60% for luxury real estate or holiday homes. Mortgage interest rates are currently competitive.
6. Complete the Sale Through a Swiss Notary
Property transactions in Switzerland must be notarized. The notary will prepare the purchase contract, verify authorization, and register the transaction with the land register. After full payment, ownership transfers to the new owner, typically within 2 to 6 months.
It is important to note that commercial properties may be purchased solely as an investment by foreign buyers, allowing them to acquire such properties independently for income generation or portfolio diversification.
