Buying Property in Switzerland as a Foreigner

May 19

Buying property in Switzerland as a foreigner can be complex due to legal restrictions, regional regulations, and limited availability in certain areas. This guide provides a clear overview of what international buyers need to know — from legal requirements and location rules to the full purchasing process and associated costs.

Can foreigners buy property in Switzerland?

Yes — but only under specific conditions!

Property purchases by foreign nationals are regulated under the Swiss law commonly referred to as the Lex Koller. This legislation restricts the acquisition of Residential Real Estate by persons who are not resident in Switzerland.

In general:

Swiss residents (including many foreign nationals with residence permits)

→ can typically purchase property without restrictions, provided it is used as their primary residence

Non-resident foreigners

→ may only buy under certain conditions, usually:

in designated tourist areas
with official authorization from the relevant canton
and subject to strict usage limitations (e.g. holiday homes only)

In addition, purchases are often subject to:

annual cantonal quotas
limitations on property size and use
restriction on resale or rental
Each canton applies these rules differently, which makes local expertise essential.

Where can foreigners buy property in Switzerland?

Location is one of the most important limiting factors — but not the only one.

For non-resident foreigners, property purchases are generally limited to specific cases approved under the Lex Koller framework.

Common possibilities include:

Approved tourist regions (e.g. alpine resorts in cantons such as Valais or Graubünden)
Properties within municipalities authorized to allocate permits to foreign buyers
In certain cases, properties that already have an existing authorization for foreign ownership (subject to cantonal approval)

Important restrictions:

Major cities such as Zurich

→ are generally not accessible for non-resident foreign buyers of residential property

Because in those regions

→ Primary residences for non-residents are typically not permitted

Because regulations vary significantly between cantons, each case must be assessed individually.

Buying property as a resident vs. non-resident

Understanding your residency status is crucial:

If you are a resident in Switzerland:

You can typically buy property as your primary residence
Financing and ownership are generally straightforward

If you are not a resident:

You are subject to authorization requirements
Property type and location are restricted
Usage may be limited (e.g. holiday homes only)

The property buying process in Switzerland

The process is structured and legally secure, but differs from many other countries.

Step-by-step overview:

Property search
Identification of suitable properties (often including off-market opportunities)
Reservation / Letter of intent
Informal agreement or reservation with the seller
Financing confirmation
Mortgage approval (if applicable)
Purchase agreement
Legally binding contract prepared and certified by a notary
Notary appointment
Signing of the official deed in the presence of a notary
Transfer of ownership
Entry into the land registry finalizes the transaction

The notary plays a central and neutral role in ensuring legal compliance.

Costs and taxes when buying property

In addition to the purchase price, buyers should consider additional costs, such as:

Notary and land registry fees
Property gains tax (depending on canton)
Legal or advisory fees (if applicable)
→ Additional costs typically range between 3 - 5% of the purchase price, depending on canton

Financing as a foreign buyer

Financing options depend on residency status and the bank:

Swiss residents generally have access to standard mortgage products

Non-residents may face:
stricter lending criteria
higher equity requirements
limited financing options

For foreign buyers of Swiss residential real estate, direct mortgage financing from foreign banks secured against the Swiss property itself is relatively uncommon in practice. The standard route is typically financing through a Swiss lender, usually with lower maximum LTVs and stricter underwriting standards for non-residents. In the UHNW segment, private-bank Lombard or broader AUM-backed facilities are also frequently used to provide liquidity without relying primarily on direct Swiss property mortgage collateral.

→ Foreign buyers commonly use Swiss lenders

Key challenges for international buyers:

Foreign buyers often face:

Complex legal framework
Limited property availability
Regional differences in regulations

→ This is where structured guidance becomes critical

Why work with a local Real Estate Advisor

Navigating the Swiss property market as an international buyer requires more than just access to listings:

A local advisor can help you:

Identify suitable regions and properties
Access off-market opportunities
Coordinate with notaries, banks and authorities

Johann Trenkler