Difficulties of real estate acquisition in Switzerland
Switzerland tries to limit property sales to foreigners for a long time. The federal government established an annual quota of permissions which are issued to the non-resident aliens wishing to purchase property in Switzerland. Such permissions are issued only in certain cantons, and even in them additional restrictions are often imposed. Some cantons limit the size of the real estate which the foreigner can purchase, and sometimes restrictions are imposed even on further resale of property.
In the same way it is not simple to purchase the real estate and to the foreign companies (even to the Swiss companies where more than 30% of stocks belong to foreigners).
Process of purchase of the real estate in Switzerland is quite simple. To make sure that the purchase and sale agreement is made truly and according to the law, services of the notary will be necessary for you.
The first step in this process – agreement signature on purchase and sale of a real estate object (Promesse de Vente) and also deposit repayment which usually makes about 10% of project cost. The agreement directly depends on the permission to purchase of the real estate issued to the foreigner by the special commission.
Getting permission to purchase, about 8 weeks usually leave, but, in certain cases, process can drag on also up to three months (it is possible in the end of the year, especially if the annual quota of permissions was exceeded).
Upon purchase of new buildings the amount usually breaks into parts which make a reservation in the agreement.
The buyer shall or visit personally the notary to sign the agreement, or to give someone to another the power of attorney made by the notary.
We warn that in rare instances the commission on issue of permissions to purchase of the real estate can impose conditions on use of property. Such conditions can assume, for example, that the buyer or his family are obliged to live in property at least for three weeks every year or that an object can be leased only for 11 months a year. However usually nonresidents can live in property up to six months a year, within three months in a row for one visit, but can lease property on the rest of year.
On performing procedures, necessary to register property in Switzerland, 11-20 days usually are required.
The transaction costs paid by the buyer:
- Transfer tax of immovable property: 0.0% - 3.30%.
- Tax on registration: 0.25 in %.
- Fee of the notary: 0.10%.
The real estate in Switzerland always remains demanded, thanks to stable economy and the high level of life in the country. Specialists of the AWAY REALTY company with pleasure will help you to pick up suitable option and will help at each stage of the transaction.
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