What is the situation with permits to buy property in Switzerland?

This is our most frequent question so we will now try to give you some information on this hot topic.

Many of you know that one needs to have a permit to purchase property in Switzerland. But there are two types of permit in Switzerland that are commonly discussed. We will describe both.

1 - the permit to buy property as a non-resident

2 - the residency permit

1.

This permit allows you to purchase one property of no more than 200m2 living space and no more than 1000m2 of land. It does not matter from which country you come but in each canton the method to get these permits is very different. For example, in canton Vaud they still use the system where you will sign the contract of sale and then the Notary will apply for your permit, which could take 6months or 2 years. In this period between, the new owner is often able to use the property and some financial agreement is made between the old and new owner.

In Valais they have a new system where first an application is made to obtain the permit and when this permission arrives there is a 29day window to sign the sale act. You are then immediately the owner. The only delay in Valais is that the cantonal meetings to hand out these permits only happen 3 times per year, so if you miss that last one in July you must wait until the next year. However there is a myth that there is a great shortage of permits. In fact the last 2 years not all of the permits have been used, however some communes have imposed their own block on permits, which has given the impression of a shortage of permits.

But in general it is business as normal so if you are thinking of making a purchase then use a local professional who will be able to guide you through the system - such as Alpineswitzerland!

2.

The other permit is the residency permit which means you reside and pay your low taxes in Switzerland. Not all residents are 100% of the year in Switzerland but they are able to make their tax residency here and spend the most of the year in the country.

With this permit which is called a 'B' permit you have no restrictions to purchase and invest in property, as long as you hold an EU passport. The process to obtain a 'B' permit as an EU passport holder has been made easier over the last 3 years and you do not need to have a permenent employment contract in Switzerland to obtain a permit. You do need to have an address and be able to show either financial independance or that have a source of income outside of Switzerland. In some cases if this is harder to prove then a good Notary will be able to assist you.

***However if you do not have an EU passport things are very different. It is very hard to obtain the permit and when and if you do there are still restrictions on property purchase, eg you may not make residential investments.

If you have any questions about residency or would like to become a resident then please Contact us for further details.