Purchasing a house in Switzerland can be a significant and advantageous step for those looking to move abroad, buy a vacation home, or make an investment.
Canton Ticino, a charming Swiss region rich in natural beauty and professional opportunities, offers unique chances for those wishing to settle in this fascinating corner of Europe.
However, as with any real estate purchase process, when planning to buy a house in Switzerland, there are a series of requirements and considerations that buyers must take into account from the outset.
For a foreigner in particular, the Swiss real estate market can sometimes be challenging, especially due to specific rules regarding property ownership.
In Switzerland, the purchase of real estate by foreign citizens is regulated by the Federal Law on the Acquisition of Real Estate by Persons Abroad (LAFE), also known as Lex Koller.
This law governs the conditions under which a foreign person, i.e., a non-Swiss citizen, can purchase and hold property or land in Switzerland and establishes criteria and restrictions that must be adhered to.
One of the main requirements for foreigners wishing to buy a house in Switzerland is the possession of a residence permit.
This permit is granted to individuals who meet certain criteria, such as having stable employment in the country, enrollment in a Swiss educational institution, or family ties to Swiss citizens or permanent residents.
However, not all foreigners require authorization: an exception is made for citizens of the EU/EFTA domiciled in Switzerland, who enjoy the same rights as Swiss citizens regarding property acquisition.
These individuals do not require any authorization to purchase a home or land, except for simple documentation required by the land registry for B permits.
In addition to residency-related requirements, in Canton Ticino, buyers must also consider zoning rules and specific territory restrictions. Some areas may be subject to landscape or environmental constraints, while others may have particular requirements regarding the use of the property.
There is also the possibility of purchasing residential property as a foreigner if it is a secondary residence, is less than 200 square meters in usable living space, and the land is less than 1000 square meters.
Another important aspect to consider is the availability of financing and capital for the purchase of the house.
Buyers must be aware of the requirements of Swiss banks and lending policies, as well as the need to have adequate initial capital to secure financing for the purchase.
It is possible to apply for a mortgage to purchase property in Switzerland; here you can find a detailed guide to mortgage loans that we have written specifically on this topic.
Given the complexity of Swiss laws and regulations, it is advisable to seek professional legal and tax consultation before proceeding with the purchase of a house, both in Switzerland and particularly in Canton Ticino.
Notarial costs and transfer taxes typically range between 2 and 2.5% of the transaction price and are borne by the buyer. Mediation costs in Canton Ticino, on the other hand, are solely borne by the sellers and typically range between 4 and 5% of the transaction price.
A real estate agency specializing in the local market will provide valuable professional assistance in understanding legal documents and ensuring that all formalities are handled correctly.
It is important to remember that the purchase of property in Switzerland by a foreigner does not entitle them to a residence permit.
Buying a house in Switzerland, especially in the picturesque Canton Ticino, can be the dream of many people.
However, it is essential to be aware of the requirements and procedures necessary to ensure a satisfactory purchase.
Through precise information, adequate consultation, and a clear understanding of local laws and regulations, buyers can fully enjoy the benefits of owning a home in this fascinating Swiss region.
If you are considering buying a house in Switzerland, Matteo Degli Agli and the entire MDA Group Real Estate staff will be happy to help you find the best properties currently on the market.
Contact us to schedule an appointment.
