Permits

• The annual quota of permits available for foreigners to buy property in Switzerland currently stands at 1440 with restrictions on only being allowed to buy in certain Cantons and in tourist resorts. In some areas you are also restricted on what type of property can be bought. All property listed on this website are readily available for you to buy.

• There are also some regional restrictions relating to re-sale of the property to be aware of and in some Cantons re sale may not be possible for up to 5 years to try and stop property speculation yet prices are continuing to go up to meet the increasing demand. In Valais re-sale period now stands at 5 years.

• Our constructors will arrange the meeting with the Notary (Swiss Solicitor) for you to sign contract papers and the latter will then apply for the permit on your behalf. Please note a UK based Solicitor cannot complete your property purchase or carry out the conveyancing for you.

• The whole process is very easy and straightforward with contracts translated into English before signing. We offer free continuing expert legal guidance throughout the purchasing and construction process. If you have any queries about this part of the process please contact us for further information.

Purchase Procedure & Costs

• The Swiss Public Notary acts for both purchaser and vendor. Purchase fees vary from Canton to Canton but in Valais the total purchase costs (notary fees, land registry fees, and Government purchase taxes) amount to around 2.5% of the purchase price. The property must be purchased by the individual and cannot be bought by a limited Company. All purchase costs are payable by the purchaser. When you come to sell, no Notary fees are payable.

• As all contracts are carried out in Swiss Franc’s all prices listed on this website are in the Franc’s also. Should you wish to do a currency conversion please click here.

 Payment Terms

· 30% before starting the work

· 30% on completion of the roof.

· 30% on completion of the kitchen.

· 10% within 10 days prior to final completion.

 

(This is the usual terms though 10% deposits are currently being requested by some constructors owing to the permit situation)

Legal Restrictions

• Non Swiss may only buy one property per family in Switzerland where a family is defined as husband and wife.

• An owner or his family may occupy their property for up to six months per year without requiring a residency permit.

• Your property cannot be rented on a full annual basis the maximum being 11 months and 1 week, as you, your family or friends are supposed to use the property for at least 3 weeks of the year.

Finance

• Interest rates have always been lower in Switzerland than the UK. We can put you in touch with the best Swiss Banks who will be able to arrange your mortgage for you. Mortgages typically are up to 65% but can even range up to 80% depending on your financial circumstances. The variable rate is currently at a level of 2.5% while fixed rate mortgages of under 3% for several years are currently available.

• A Swiss Mortgage is effectively an overdraft secured against the property with the borrower paying interest on the capital outstanding. Usually, in the process of buying, you are required by Swiss Banks to pay off 20% of the mortgage in 25 years which you need to be aware of and some of the other websites selling Swiss property currently don't  mention this.

• Similarly please also consider the Mortgage Registration Fee when completing your calculations of around 1.5%

• Please note we do not charge any brokerage service or get any commission from the introduction to the Bank. This is merely part of the service we offer.

 Running Costs

• These include, all government taxes (property and Canton Taxes), buildings / contents insurance, utilities (water, Electricity), and any communal charges (heating, service, administration, gardening, snow clearing).

• Rental Agencies usually charge around 20% + fees for providing a rental, cleaning, marketing and key holder service. Rental income is not taxable in Switzerland* but is taxable in the UK but you can offset interest on your loan and other expenses against tax. See form IR150

*For more information on rental returns and rates please contact us.

 Tax on Profit from Sale of your property

Property in Switzerland is subject to appreciation tax where the taxable profit is the difference between sale price and total purchase price. Capital Gains Tax is banded and decreases each year of ownership.

Viewing Property you are interested in Buying

We would strongly recommend you visit before buying and would be happy to help you plan your visit, book you a hotel and arrange for you to view some of the properties built by our constructors and in addition arrange an appointment to meet the Bank for an informal chat as well.