Are you intrigued by the Swiss real estate market and find yourself in a position to invest some capital?
Switzerland, besides being one of the most fascinating countries in Europe, offers the undeniable advantage for investors of having a real estate sector considered one of the most solid.
The guarantees provided by a financially rich and stable country can make a real estate transaction a very profitable investment.
Buying a house for investment in Switzerland is possible and advantageous, but the process involves a fairly complex procedure for non-residents.
Therefore, the advice of a local real estate agency experienced in cantonal / federal legislation is essential to handle all the bureaucratic procedures professionally and safely.
In this article, we will address all the main doubts and questions usually asked by those interested in buying a house in Switzerland for investment, starting from the main advantages of this choice, identifying the best areas, and outlining the necessary initial steps to realize your project.
The rental income from a property in Ticino is quite good, with a potential return on investment of 4-4.5%. Considering the country's stable economic and political situation, this is one of the most interesting results on a global level, making it an attractive option for savvy investors.
A solid and continuously growing rental market, limited supply of real estate assets compared to demand, and the tendency for residents not to own a home are the main reasons that make buying property in Switzerland a potentially very lucrative investment.
However, rental income is not the only opportunity for advantageous capital investment.
Although house prices in Switzerland are not low, the constantly growing market allows for particularly advantageous returns from property appreciation, which is the difference between the purchase and resale price of a property. For example, with a good purchase price and considering the renovation of a specific property, you can achieve a profit margin of 30-40%.
By relying on the qualified advice of an expert, it is possible to leverage the dynamism of the sector and the continuous growth in property value to identify the right house to buy and sell quickly at a higher price.
Among its services, MDA Group Real Estate has always offered tailor-made advice to help clients find the right property for their needs, whether for residential use or, as in this case, for investment purposes.
The Canton Ticino is certainly the most sought-after area for Italians.
The geographical and linguistic proximity to Italy makes the main cities in this canton very attractive to investors looking for above-average returns and, above all, a relatively safe investment.
The most coveted cities in the Canton of Ticino for investment are undoubtedly Lugano, Locarno, and Bellinzona, but interesting purchase opportunities can also be found in Chiasso and Mendrisio, with slightly lower costs.
There are several scenarios in which a foreign citizen seeking to buy a house in Switzerland for investment may fall into.
As a specialized agency, we always recommend a comprehensive 360-degree consultancy to avoid any potential restrictions.
The Swiss real estate market, being highly regulated, offers many guarantees for investors. However, it also requires bureaucratic procedures and authorization processes that vary depending on the type of buyer and the canton where the property is located.
For example, European citizens (citizens of European Union countries or the European Free Trade Association) who hold a Swiss residence permit and anyone with a C permit enjoy the same rights as Swiss citizens.
This means they can purchase real estate in Switzerland without authorization.
Those with a B permit (residence permit) are subject to the LAFE (accelerated procedure) for the purchase process.
It should be noted that buying property in Switzerland does not automatically grant the right to obtain a residence permit.
Individuals from non-EU countries (including the United Kingdom) who reside in Switzerland have the same rights only if they hold a C permit (residence permit). Otherwise, they will need to obtain authorization from the competent canton and adhere to specific limitations.
Each canton follows rules that may vary.
Are you considering investing in Swiss real estate and want to learn more about the market and how to proceed?
Contact us for a consultation, and we will be happy to answer all your questions and help you find the house that best suits your specific needs.
