Buying real estate in Switzerland

Lex Koller, mortgage financing and the purchasing process: the complete guide for expats

Buying real estate in Switzerland is a major investment, with prices among the highest in Europe. For expatriates, the legal framework presents important particularities, in particular the Lex Koller which restricts access to property for non-resident foreigners. This guide takes you through the key steps, from financing to signing with the notary, taking into account the specificities for foreign residents.

Lex Koller: restrictions for foreigners

The federal law on the acquisition of real estate by persons abroad, commonly known as Lex Koller, limits the purchase of real estate by foreigners. As a foreign resident with a B permit, you can freely purchase your main residence, but the purchase of second homes or investment properties is subject to cantonal authorization.

Holders of a C (establishment) permit benefit from the same rights as Swiss citizens and are not subject to the Lex Koller. EU/EFTA nationals domiciled in Switzerland are also largely exempt for their main residence.

• C license: no restrictions, same rights as the Swiss
• B Permit (EU/EFTA): free purchase of the primary residence
• B Permit (non-EU): primary residence authorized, investment subject to authorization
• Non-residents: very restricted purchase, limited to certain tourist goods in designated areas

Types of real estate

Property by floors (PPE)

The PPE is the equivalent of co-ownership. You are the owner of your apartment and co-owner of the common areas. This is the most common form of ownership in Switzerland, representing around 40% of transactions. PPE charges vary from CHF 3 to CHF 6 per m² per month.

Individual or terraced house

Rarer and more expensive, the detached house represents the real estate dream of many expatriates. Prices are significantly higher than the PPE, especially in the metropolitan areas of Zurich, Geneva and Lausanne.

Building land

Purchasing land to build on is possible but complex. Land prices vary from CHF 300 to CHF 3,000 per m² depending on the location. The construction process is regulated and requires a cantonal building permit.

Mortgage financing

In Switzerland, the mortgage system works differently from many countries. Banks finance a maximum of 80% of the value of the property, so you must provide at least 20% of your own funds, of which at least 10% does not come from the 2nd pillar.

Item	Detail	Example (property at CHF 1,000,000)
Minimum own contribution	20% of the value of the property	CHF 200,000
Including “hard” equity	Minimum 10% (savings, 3rd pillar, donation)	CHF 100,000
2nd pillar (LPP)	Maximum 10% of the value of the property	CHF 100,000
3rd pillar (3a)	Can be used in full	Variable
1st mortgage	Up to 65% of the value of the property	CHF 650,000
2nd rank mortgage	15% max., amortization over 15 years	CHF 150,000
Fixed rate (10 years)	Around 1.5% – 2.5% (2026)	CHF 12,000 – CHF 20,000/year
Variable SARON rate	Around 1.2% – 1.8% (2026)	CHF 9,600 – CHF 14,400/year

Acquisition costs

Beyond the purchase price, plan for additional costs representing 3 to 5% of the value of the property. These fees vary significantly depending on the canton.

• Notary fees: 0.1% to 0.5% of the sale price
• Transfer taxes: 0% (Zurich, Schwyz) to 3.3% (Neuchâtel) depending on the canton
• Registration in the land register: 0.1% to 0.5%
• Mortgage fees (mortgage certificate): 0.1% to 0.3%
• Real estate estimate: CHF 500 to CHF 1,500
• Geneva: 3% transfer tax + 0.4% notary fees
• Vaud: 3.3% transfer tax + 0.2% notary fees
• Zurich: 0% transfer tax + notary fees depending on the municipality

Step-by-step purchasing process

• Define your budget and obtain a financing certificate from your bank
• Search for the property (portals: Homegate.ch, ImmoScout24.ch, Comparis.ch)
• Visit and assess the property (condition, PPE charges, neighborhood)
• Make a written offer to the seller or real estate agent
• Negotiation and agreement in principle on the price
• Signature of the reservation contract (optional, not standard in Switzerland)
• Finalize mortgage financing with your bank
• Go to the notary to sign the deed of sale
• Registration in the land register (effective transfer of ownership)
• Delivery of keys and taking possession of the property

Real estate taxation

In Switzerland, owners are taxed on the rental value of their property, even if they live there. This fictitious amount (generally 60 to 70% of the market rent) is added to your taxable income. In return, you can deduct mortgage interest, maintenance and renovation costs.

Real estate gains tax applies upon resale. The rate depends on the canton and the holding period: the longer you hold the property, the lower the rate. A resale in the first 2 years can be taxed up to 40 to 60% of the gain depending on the canton.

Related Services

Service Housing Search in Switzerland

Useful Guides

Guide Finding an Apartment in Switzerland Guide Preparing Your Rental Application in Switzerland Guide Rental Deposit in Switzerland Guide Health Insurance in Switzerland

Frequently Asked Questions

Can a B permit holder buy real estate in Switzerland?

Yes, a B permit holder can buy their main residence without restriction if they are an EU/EFTA national. For non-EU nationals, the purchase of the main residence is also possible but may require cantonal authorization in certain cases. The purchase of investment properties or second homes, however, is subject to the Lex Koller and requires authorization.

What are the restrictions for purchasing a second home?

The purchase of second homes is subject to the Lex Koller for foreigners and the Weber initiative (limiting second homes to 20% per municipality) for all buyers. Non-resident foreigners can only purchase a second home in designated tourist areas, with a surface area limited to 200 m² and a capped price. Holders of a C license are not affected by the Lex Koller.

Do I have to resell my property if I leave Switzerland?

If you purchased your main residence with a B permit, you are not obliged to resell when leaving Switzerland, but you will potentially need to obtain a Lex Koller authorization to keep the property as a non-resident. Holders of a C permit who leave Switzerland retain their real estate rights without restriction. In practice, the bank can also review the conditions of your mortgage if you are no longer a Swiss tax resident.