Legal issues

The sale of real estate to non-residents is subject to various Swiss laws, the most common is the 'Lex Koller-Friedrich' which was introduced to inhibit the sale of property to non-residents. Within the frame of this law the government issues 'x' amount of permits per year to each local area or resort and if a property is to be sold to a non-resident the non-resident will be given the permit to purchase the property. When these permits are used the resort has to wait until the next year to get more. For example the canton of Vaud allows non-residents to buy and sell property with few limits apart from the necessity to have a purchase permit(not residency permit) and pay your capital gains on the sale (these depreciate with time), but other areas my also restrict you selling your property for a period of time to stop speculative buyers and slow the price rise. However this has not worked and property in many resorts has been on a steady rise in the last few years.

EU citizens with a residence permit B and all foreigners with a residence permit C (i.e. residence permit for a non-Swiss national) can buy as many properties as they want. They are considered as Swiss citizens.

It is not allowed under Swiss law for anyone else to purchase your property in their name. A non-Swiss family may only buy one property of average 200 square meters of liveable space (this value can change from canton to canton).Over the age of 20, the children of an owner may purchase one property in his/her own name, provided he/she can prove his/her financial independence.

It is possible to re-sell an apartment after its acquisition to another non-resident, subject to the restrictions under the “Lex Friedrich”. All applications must be made through a notary’s office, once a buyer is found.

HOWEVER, in Vaud you can resell immediately but this is one of the few cantons where this is possible if you do not have a permit 'B'. In Valais you have to wait up to 10 years before you can sell, unless you have decent grounds such as medical illness, personal finance problems. These must be submitted and then if you can sell you will not be entitled to receive any capital gains, only to recover certain expenses. If you have a permit 'B' 'C' or are a national then these problems do not exist.

Under Swiss Law, an owner or his family may occupy their apartment for up to six months per year with one stay lasting no more than three months. The accommodation cannot be rented annually,eg a rental contract for one year, the maximum rental period possible is 11 months.

The federal construction guarantee (for new buildings only) is:

Five years for construction defects
Ten years for hidden defects.

For resale properties, there is no guarantee.

The “Propriete Par Etage” (PPE) means co-ownership by floor. With this rule you have the following rights.

a share of the whole building and its integral parts (totality of the property / walls / balconies / fences / concrete and floor / roof covering and plumbing / common parts, etc.).
an exclusive right to use your defined parts of the building (your apartment and garage if applicable)

The building is divided into shares and measured in thousandths. The administrative “control” of the PPE co-property is exercised by the co-owners’ annual general meeting.