can non swiss buy property in switzerland

Yes, non-Swiss individuals and companies can buy property in Switzerland, but there are certain restrictions and requirements to consider. These regulations vary depending on the canton and the type of property. Here’s an overview:

Federal law: The Swiss Federal Law on the Acquisition of Real Estate by Persons Abroad (Lex Koller or LFAIE) regulates the acquisition of real estate by non-Swiss individuals and companies. The law aims to prevent foreign investors from buying up too much Swiss property and driving up prices.

Restrictions:

1. Authorization requirement: Non-Swiss buyers need to obtain authorization from the cantonal authorities before purchasing property. This applies to both individuals and companies.
2. Quotas: Some cantons have quotas limiting the number of properties that can be sold to non-Swiss buyers each year.
3. Restrictions on resale: Non-Swiss buyers may face restrictions on reselling their property within a certain period, usually 5-10 years.
4. Commercial properties: Non-Swiss companies can buy commercial properties, but they must demonstrate a legitimate business interest and meet certain requirements.

Cantonal variations: Each canton has its own regulations and requirements for non-Swiss property buyers. Some cantons, like Zurich, Geneva, and Vaud, are more liberal, while others, like Bern and Valais, have stricter rules.

Types of property: Non-Swiss buyers can purchase:

1. Residential properties: Apartments, houses, and chalets, but only for personal use, not for rental or commercial purposes.
2. Commercial properties: Offices, shops, restaurants, and hotels, subject to certain requirements.
3. Vacation homes: Non-Swiss buyers can purchase vacation homes in certain cantons, like Valais, Bern, and Graubünden, but only for personal use.

Requirements for non-Swiss buyers:

1. Residence permit: Non-Swiss buyers may need to obtain a residence permit (B-permit) before purchasing property.
2. Proof of income: Buyers must demonstrate sufficient income to cover the property’s expenses and mortgage payments.
3. Financing: Non-Swiss buyers may need to secure financing from a Swiss bank or demonstrate sufficient assets to cover the purchase price.

Taxes and costs: Non-Swiss buyers should be aware of the following taxes and costs:

1. Transfer tax: 2-3.3% of the purchase price, depending on the canton.
2. Registration fees: 0.5-1.5% of the purchase price.
3. Notary fees: 0.5-1.5% of the purchase price.
4. Annual property taxes: Varying rates depending on the canton and property value.

In summary, while non-Swiss individuals and companies can buy property in Switzerland, the process involves navigating complex regulations, obtaining authorization, and meeting certain requirements. It’s recommended to consult with a Swiss lawyer or real estate expert to ensure compliance with federal and cantonal laws.