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.This law has been lifted slightly in some cantons but still stays in place in most of the country.

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 new and old property(after 5 years of ownership) and pay your capital gains on the sale (these depreciate with time), but other areas may also restrict you selling your property for a period of time, 5 years for new property and 10 years for a re-sale in Valais,  to stop speculative buyers and slow the price rise..

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 18-20, your children may purchase one property in his/her own name, provided he/she can prove his/her financial independence, thus you can buy a larger property.

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.

For a non Swiss in Valais and Vaud you have to wait 5 years before you can re-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 Swiss national and if you purchased the property under these conditions then you may sell your property after 10 years to a non-Swiss in Valais and 5 years to a non-Swiss in Vaud. If you are selling to a permit 'B' 'C' holder or a Swiss national there are no restrictions.

Under 'Lex Koller-Friedrich' Swiss Law, a non-Swiss 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, unless the property is under a special permit as a 'warm bed' or 'hotel' then there is a requirement that you rent the property under contract for 15 years.

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

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.