Swiss Property Purchase Process

Foreign buyers must first ensure they qualify under the Lex Koller regulations. These regulations require non-residents to obtain a foreign buyer’s permit from federal and cantonal authorities unless they are purchasing a main residence and have a Swiss residence permit (Permit B).

After selecting a property, buyers should confirm their affordability, taking into account mortgage eligibility, renovation costs, and co-ownership expenses. Once an offer is accepted, the estate agent will initiate the permit application process.

Purchase fees in Switzerland vary by canton, generally ranging from 2.5% to 5% of the property price.

• Bern: Approximately 3% in total, which includes 1.8% for government purchase tax, 0.8% for notary fees, and additional registration fees.
• Valais: Approximately 3% in total, consisting of 2% for transfer tax and 1% for notary fees.
• Vaud: Approximately 5% in total, including 3.3% for transfer tax and 1.7% for notary and registration fees.

Mortgage registration fees also vary: around 1% in Valais, while in Vaud, they range from 0.6% to 0.44%.

Swiss banks typically lend up to 70% of the loan to value (LTV) ratio, offering low interest rates without setup or insurance fees.

You can find a Swiss notary through cantonal government websites, the Swiss Notaries Federation (snv-fsn.ch), or directories. Local real estate agents, banks, or municipal offices can also recommend trusted notaries in your area.

When purchasing an off-plan property in Switzerland, the process begins by confirming eligibility under the Lex Koller regulations. Foreign non-residents must obtain a foreign buyer’s permit from the relevant federal and cantonal authorities. After selecting a development and securing financing—considering mortgage approval, savings, and potential renovation or co-ownership costs—you can submit an offer through your estate agent.

Once your offer is accepted, the estate agent will initiate the foreign buyer permit application. Payments for off-plan properties are typically made in stages as follows:

• 30% upon signing the contract
• 25% when the foundations are laid
• 30% when the roof is completed
• 15% upon handover of the keys

Some new builds are sold on leasehold land (Baurecht), which requires annual land interest payments, while others are freehold. After construction is completed, buyers receive a home warranty that is valid for 5 to 10 years, depending on the scope of any identified defects.

Newly constructed properties in Switzerland are protected by both statutory and contractual building guarantees:

1. Legal Guarantee (Swiss Code of Obligations, Art. 371): Buyers have a 5-year warranty period from completion for defects in immovable works. This extends to 10 years if the defect was deliberately concealed.
2. SIA 118 Standard (if included in the contract): This standard provides a 2-year warranty for visible defects and up to 5 years for hidden defects.
3. Extended Guarantees or Insurance: Developers often offer additional coverage, such as 10-year structural warranties or "house building guarantee" insurance.

Buyers must promptly report any defects upon discovery to maintain their rights. Available remedies may include repair, price reduction, or, rarely, contract cancellation.

Buying property in Switzerland typically takes 1–2 months for Swiss residents and 3–4 months for foreign buyers, as non-residents must first obtain a Lex Koller permit before final registration.