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Here
we offer you basic information about the procedure of buying property
in Switzerland. We will assist you through out the whole process.
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Buyers Guide to Switzerland Permits to purchaseThere is an annual quota of permits (presently 1,440) in the whole of Switzerland which are made available to foreigners wishing to purchase property there. Only properties in a few of the cantons are authorised for sale and usually then only in resorts with tourist attractions. As well as limiting the geographical area in which foreigners are permitted to buy, they may also be restricted to buying certain types of property; in some cantons it is possible to buy an individual chalet, in others it is not. There may also be restrictions relating to the resale of the property; in some cantons foreigners are prohibited from selling the property within 5 years or 10 years of purchase to stop property speculation, but in Cantons such as Vaud (Villars) you may re-sell immediately. Your Swiss notary will apply for your permit once you have contracted to buy a property and usually this takes 12 weeks. Generally, the Canton of Vaud, (which includes the mountain resort of Villars and the lake resort of Montreux) is the most liberal canton offering the largest choice of property available for purchase by foreigners. Purchase procedure and costs A Swiss public notary will act for both the purchaser and the vendor. The purchase fees vary from one Canton to another. In canton Valais (Verbier) the total purchase costs (notary fees, land registry fees, and Government purchase taxes) amount to around 2.5% of the purchase price. In canton Vaud (Villars) the total purchase costs are 5% of the purchase price. The property must be purchased in the name of a private individual; it is not permitted to buy in the name of a limited company. Swiss inheritance laws will apply to a property in Switzerland, so it is advisable to make a will which refers specifically to the property, and to lodge a copy of this with the notary. Finance Interest rates have always been lower in Switzerland than in the U.K. Typically, Swiss banks will lend up to 65% of the purchase price over 25 years, or up to 50 years. Effectively a Swiss mortgage is an overdraft secured against the property and it is very flexible. The borrower pays interest every 6 months on the capital amount outstanding and can pay off part of the loan on giving notice. Interest rates are currently around 3.5% for a variable rate, under 3% for 3 or 5 year fixed rates. We would be pleased to introduce you to a Swiss bank, we do not charge you a brokerage fee or receive commission. Running costs The property taxes vary from canton to canton. Typically the total annual expenses for an apartment in Verbier including all taxes and charges will be approximately Sfrs. 70,- per m2. This will cover all utilities (water, electricity) and insurance and the communal charges (heating, service, administration etc.) and local property taxes. Taxes in canton Vaud (mountain resort of Villars, lake resort of Montreux) are higher. Rental agencies usually charge around 20% commission for providing a full rental and management service. Most owners rent their apartments through such agencies on a weekly basis and set aside some weeks each season for their own use. Rental income is not taxable in Switzerland, but may be taxable in your country of residence. ACQUISITION
COSTS approximately 2,3% of purchase price |