SWITZERLAND

Buying property in Geneva, Verbia, Zermatt, Zug, Zürich

Buying a home in Switzerland as an expat involves navigating various rules, costs, and procedures. Here’s a detailed breakdown:

1. Homeownership in Switzerland
Low ownership rates: Only about 37.4% of the population own their homes. It is especially low in cities like Basel and Geneva.
Regional variance: Homeownership is higher in rural areas, where older residents are more likely to own homes, over 65's.

2. Renting vs. Buying
Renting: Most expats initially rent due to Switzerland's competitive real estate market, especially in cities.
Buying: House prices have risen steadily since 2019 after a dip in 2017. The average price per square meter in major cities like Zurich, Geneva, and Lausanne ranges from CHF 12,938 to CHF 13,967.

3. Foreign Ownership Restrictions
EU/EFTA nationals: With a Swiss residence permit, these individuals can buy homes with the same rights as Swiss citizens.
Permit holders: Those with a C Permit can purchase property freely. B Permit holders can buy only for personal residence.
Licenses: Non-EU/EFTA nationals or non-residents must apply for a license to buy, and rules vary across cantons.

4. Costs of Buying Property
Transaction costs: These range from 0.25% to 3.55% for buyers, which is lower compared to other European countries. These include notary fees, real estate transfer tax, and registration fees.
Budgeting: Buyers should factor in additional costs like service charges (1% of purchase price annually) and property taxes, which vary by canton and commune.

5. Swiss Mortgage System
Down payment: A minimum of 20% deposit is required, with at least 10% in cash.
Mortgage providers: Brokers like HYPOHAUS can assist with navigating mortgage options. First-time buyers may access special mortgage rates.

6. Buying Process
Offer stage: Once a suitable property is found, an offer is made and communicated to the seller, usually through an agent.

Notary's role: The notary handles contracts, funds in escrow, and legal formalities.
Contract: Usually drawn by a notary, and in some cantons, this is legally required. Buyers should ensure they understand the local language or work with legal representation.

7. Final Steps
Insurance: Building insurance covering fire and natural disasters is mandatory. Additional coverage like contents or liability insurance is optional.

Utilities: New homeowners must set up utility providers for electricity, water, internet, and TV.

8. Building Your Own Home
Land prices: Land costs range from CHF 150 to over CHF 2,000 per square meter depending on location.

Construction: Costs vary based on the design, materials, and scale of the project.
Switzerland’s real estate market can be challenging due to its competitive nature, high costs, and regulatory framework, but with careful planning and understanding of the local systems, buying a home can be a feasible option for expats.

We can search, source, and provide the very best property options available for you before negotiating, securing and moving you in.

To find out more, contact us for further details.