The Home Buying Process in Switzerland: All You Need to Know About Purchasing Luxury Real Estate

Luxury real estate is a long-standing institution in Switzerland. From its breathtaking landscapes to the superb opportunities it offers for local and foreign home buyers alike, the country enjoys a prestigious reputation that vastly contributes to the vibrancy of the Swiss property market. Both diverse and exclusive, it features beautiful houses amid stunning natural sites or at the heart of lively cities. That said, navigating it can also be complex, which is why understanding the different steps involved in the home-buying process is crucial. Here’s what you need to know about buying property in Switzerland.

Luxury Real Estate in Switzerland: Get in Touch With an Expert to Streamline Your Home Buying Process

Buying property in Switzerland involves a process that sets the country apart from its European neighbours. The legal framework governing real estate purchases – especially for foreign nationals living abroad – is very particular about the conditions that apply to the buyers and sellers.

In addition, luxury property listings are not always directly accessible to potential buyers, and finding the right property to acquire in Switzerland can be a complicated endeavour if you set out to do it alone. Having a luxury real estate agency at your side is undoubtedly the best way to identify the ideal property asset.

Luxury real estate agency FGP Swiss & Alps seeks to unlock the most prestigious, exclusive selection of homes for its clients. We curate an elite portfolio and bring you a collection of high-end properties highlighted for their unique qualities.

For owners and buyers alike, the home-buying process in Switzerland is complex enough to warrant calling upon an expert in luxury real estate. Their role is to make sure due process is followed by everyone involved. They also handle practical matters, seeing to the property diagnosis, estimation, or the advertising side of putting a house on the market, for example. Your estate agent will have gathered all the key information to make the undertaking smooth and straightforward.

Buying Property in Switzerland: Key Steps in the Home Buying Process

The home-buying process in Switzerland follows a strict set of steps that create the ideal conditions for the transaction to take place harmoniously. It allows the seller and buyer to enjoy a worry-free sale and to ensure everything is handled according to regulations.

Find Your Dream Property in Switzerland

Before scouring websites in search of the perfect home, know that exclusive luxury properties are rarely listed on traditional real estate portals. This is another reason why going through an agent can prove crucial, as these professionals have access to select homes and sellers who would only show their house or apartment to pre-approved potential buyers.

Discuss locations, home types, and other wants and needs with your agent, who will curate a list of properties that match your criteria.

Make an Offer

When you have found the place you would like to call your own, it’s time to place a bid. Your real estate agent will help you adjust your proposal depending on the original asking price and negotiate with the seller on your behalf. At this stage, you will be expected to provide a mortgage agreement or a letter from your bank stating that all is in order for you to purchase the property.

Get in Touch With a Notary

Once your offer has been accepted, the process of buying property in Switzerland is relatively straightforward. The transfer of ownership is a notarised procedure, which means everything must go through registered professionals. Your real estate agent will be of great help here as well. They can point you to a notary near your new place of residence. One of the benefits of the notary system is that your payments will be deposited into a trust account, guaranteeing that you can recover your funds should the sale be cancelled.

Sign Your Sale Agreement and Pay Your Security Deposit

The sale agreement is a notarial deed. It outlines the purchase price and any specific conditions that may apply. Upon signing this document, you typically pay a down payment equivalent to 10% of the purchase price. Note that there is a 10-day withdrawal period during which the buyer may cancel the sale.

Get Your Permit to Purchase the Property

The agreement between the seller and the buyer is contingent upon the buyer obtaining a permit to purchase the property. The sale agreement usually mentions how long you have, giving you time to make your request and receive the permit.

The process can take up to three months. In some cases, the canton may even have exceeded the number of permits it can grant annually, which means it will need to wait until the beginning of the following year to issue more. Don’t worry. Your notary or estate agent will apply to the cantonal property office on your behalf and make sure the deadline is realistic.

Note that foreign nationals need to provide a residence permit based on their situation.

Sign the Authentic Deed of Sale

While your application is being examined, the notary will write the authentic deed of sale. The buyer and seller can both sign the document in person or have someone represent them. This is also when you will be expected to complete your acquisition by paying the remainder of the purchase price (minus your down payment), taxes, and fees.

Registration of the Sale With the Land Registry

This last step is performed by the notary, making you the official owner of your new home. The process typically takes up to a few weeks.

Get Your Keys

The house or apartment is finally yours. The seller may wait until the sale is officially complete before giving you the key. In practice, however, many will be happy to do it when you sign the official deed. Welcome to your new home!

Buying a House in Switzerland as a Foreigner

While Swiss nationals can purchase real estate in their home country freely, restrictions apply when it comes to foreign nationals. EU or EFTA nationals who reside in Switzerland can follow the same home-buying process as Swiss citizens. Residents from non-member countries, however, must meet three conditions if they wish to acquire a primary residence:

•Holding a Swiss C Permit.

• Purchasing the property as their main home and place of residence.

• In the case of new buildings, construction must begin within a year following the acquisition of the land.

If they wish to buy a secondary residence or a holiday home, foreign nationals from countries outside the EU need to obtain authorisation from the canton.

For foreign nationals who reside outside the Swiss territory, purchasing a home in Switzerland tends to be a more complicated process regardless of their nationality. Specific rules may vary from one canton to another, and the only authorities competent to rule are the land registry and the land registry inspectorate. This is another situation where your estate agent can help you by contacting these authorities on your behalf and giving your explicit and reliable information.

It is also worth noting that different rules apply to the purchase of real estate for business purposes (offices, shops, workshops, etc.). In that case, buyers – including non-resident foreign nationals – require no specific authorisation.

The Right Classification for Your Residence in Switzerland

Taxation is an integral part of the process of buying property in Switzerland. When purchasing a home, you need to register it under the appropriate status. Aside from professional and commercial premises, there are three categories of residential property in Switzerland.

Primary Residence

As we’ve already touched upon, anyone who resides in Switzerland legally may purchase a house or apartment as their primary residence. As the name suggests, the condition is that you must officially reside there and not rent out the property (either partially or in whole).

Secondary Residence

By law, foreign nationals are required to settle in the home they chose to purchase. However, this doesn’t apply to frontier workers. There is a separate solution for people who work in Switzerland but don’t wish to live there on a permanent basis. The secondary residence status allows you to purchase a property near your place of work without any specific authorisation (again, provided you refrain from renting it out).

Holiday Home

The purchase of holiday homes is governed by strict rules dictated by cantonal and municipal authorities. These guidelines may vary, limiting the floor space, rental terms, etc. Note that you are not permitted to own more than one holiday home.

How Does Taxation Work When Buying Property in Switzerland?

Whether you are buying a primary or secondary residence or a holiday home in Switzerland, the process always involves taxes and fees:

• Ownership transfer tax: between 0.20% and 3.30% of the property’s value (varies based on location).

• Deed registration fees: between 1% and 1.5%, depending on your canton.

• Notary fees: Between 0.1% and 1% of the purchase price.

• VAT: 7.6%

Usually, the seller is tasked with paying the real estate agent’s fee. The amount ranges from 3% to 5%, plus VAT at 7.6%. Don’t hesitate to enquire with your real estate expert.

Luxury Real Estate in Switzerland: A Select Market for Exceptional Properties

Switzerland is known for its thriving luxury sector, in which real estate plays an integral part. Prices are steadily on the rise, attesting to the true value of the exceptional properties that await investors. Similar in their uniqueness, these outstanding estates are priced according to a plethora of criteria, which can only be assessed through a personalised approach.

Selling a luxury home isn’t a mere financial transaction. These assets constitute a legacy, and it takes a seasoned professional to introduce potential buyers to properties with a history of their own. This is why the world of prestige real estate operates within restricted channels, where high-end buyers are less numerous but have very high expectations. Whether you are looking to estimate your property or purchase real estate yourself, having experts at your side allows you to enjoy personalised support.

In Switzerland, luxury real estate creates new codes outside the constraints that the sale of traditional properties is subject to. A foremost actor on this exclusive stage, FGP Swiss & Alps is the sole representative of Forbes General Properties in Switzerland and the French Alps. We believe in infusing every step in the home buying process with excellence, guiding each client towards the listings most likely to inspire love at first sight. We endeavour to free our clients from the burden of actively searching for their new homes, bringing their dream properties directly to them.

Are you looking to buy a luxury home in Switzerland? We’re here to help you uncover the rare find that will become your new investment and beloved home.

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