Buying property in Switzerland as a foreign resident
What Lex Koller allows, how financing works, and the steps from offer to notary.
Short Answer
Buying property in Switzerland is open to permit holders, but the rules differ by nationality and residence permit. A person with a C permit, or an EU/EFTA national with a B permit, can generally buy a main residence without special authorisation. Non-EU nationals with a B permit face more restrictions, particularly for second homes or investment property, under the federal law known as Lex Koller.
Switzerland has one of the more regulated property markets in Europe, shaped by a federal law restricting purchases by people domiciled abroad and by cantons that each apply their own transfer taxes and notary practices. For an expat, the first question is rarely the price of the flat, but whether you are allowed to buy it at all, and under what conditions.
This guide walks through who can buy, the types of ownership you will encounter, how Swiss banks structure mortgage financing, the costs that sit on top of the purchase price, and what to expect from the process itself. It focuses on the framework rather than figures that vary by canton or by bank, since these change and are worth confirming directly with your notary or lender at the time of purchase.
Who can buy property in Switzerland: the Lex Koller framework
The federal law on the acquisition of real estate by persons abroad, known as Lex Koller, restricts property purchases by people who are considered foreign for the purposes of the law. It does not apply equally to everyone with a foreign passport living in Switzerland: what matters is your residence permit and, for some cases, your nationality.
A holder of a C (settlement) permit is treated the same as a Swiss citizen and is not subject to Lex Koller. An EU or EFTA national holding a B permit and domiciled in Switzerland can generally buy a main residence freely. A non-EU national with a B permit can usually buy a home to live in as their main residence, but buying a second home or an investment property typically triggers the authorisation requirement, and cantonal practice on this varies.
- C permit: no Lex Koller restrictions, same rights as a Swiss citizen
- B permit, EU/EFTA national: main residence can generally be purchased freely
- B permit, non-EU national: main residence usually possible; second homes and investment property generally require cantonal authorisation
- Not resident in Switzerland: purchase rights are narrow and mostly limited to designated holiday-home areas
Working out which category applies to your specific permit, nationality and family situation is where most delays start. Our consultants can clarify your position early, before you commit time to viewings on a property you may not be authorised to buy.
Request a pre-assessmentTypes of property ownership you will encounter
Property by floors (PPE / condominium ownership)
PPE (propriété par étages) is the Swiss equivalent of condominium ownership. You own your unit outright and hold a share of the common parts of the building alongside the other owners. It is the most common form of residential ownership in Swiss cities and involves monthly common charges set by the owners' association, which cover maintenance, insurance and a renovation fund.
Detached or terraced houses
Individual houses are less common and generally command a higher price than an equivalent living surface in a PPE, particularly around Zurich, Geneva and Lausanne where buildable land is scarce. Terraced houses sit between the two in both price and the degree of shared responsibility with neighbours.
Building land
Buying land to build on is possible in principle but adds a layer of complexity: zoning rules, a cantonal building permit and construction financing all sit between the purchase and moving in. Land prices vary enormously by canton and municipality, so any figure quoted for one region tells you little about another.
How mortgage financing works in Switzerland
Swiss banks do not usually finance the full purchase price. As a buyer, you are expected to bring a substantial share of your own funds, and a portion of that equity generally needs to come from savings or comparable sources rather than entirely from pension assets. The remainder is financed through a mortgage, often structured in a first and second tranche with different terms.
Pension assets can play a role in financing: funds from the occupational pension (2nd pillar) and from tied private pension savings (pillar 3a) can typically be used toward a purchase, within limits set by the bank and by pension regulations. Because these limits and the resulting affordability calculation depend on your income, existing pension assets and the bank's own policy, a mortgage broker or your bank will need to run the numbers for your specific situation rather than relying on a generic rule of thumb.
| Component | What it generally covers |
|---|---|
| Own funds (equity) | A significant share of the purchase price, part of which usually needs to come from sources other than pension assets |
| 2nd pillar (LPP/BVG) | Can often contribute toward equity or amortisation, within limits set by the pension fund and the bank |
| 3rd pillar (pillar 3a) | Tied pension savings that can generally be used toward the purchase |
| First mortgage | The main loan tranche, usually the largest part of the financing |
| Second-rank mortgage | A smaller, higher tranche that banks typically expect to be amortised over time |
Costs beyond the purchase price
The purchase price is not the full cost of buying. Notary fees, land registry fees, and a cantonal transfer tax (sometimes called a registration duty) are added on top, and their combined weight differs noticeably from one canton to another because each canton sets its own rules on these charges. Some cantons apply a meaningful transfer tax, others apply little to none, and notary practice also varies between the French-speaking, German-speaking and Italian-speaking parts of the country.
Because of this cantonal variation, it is worth asking your notary for an estimate specific to the canton and municipality where you are buying, early in the process, rather than budgeting from a national average.
- Notary fees for drafting and authenticating the deed of sale
- Land registry fees for recording the transfer of ownership
- A cantonal transfer tax or registration duty, where the canton applies one
- Mortgage note (cédule hypothécaire) fees when the loan is registered
- An independent property valuation, if your bank or you choose to commission one
Step-by-step: the property purchase process
- Clarify whether you are authorised to buy under Lex Koller for the type of property you want
- Define your budget and obtain a financing indication or certificate from your bank
- Search for suitable properties and arrange viewings
- Assess the property's condition, any PPE common charges, and the neighbourhood
- Submit a written offer to the seller or the real estate agent
- Negotiate and reach an agreement in principle on price and conditions
- Finalise your mortgage financing with your bank
- Sign the deed of sale before a notary, as required under Swiss law
- Register the transfer of ownership in the land register
- Receive the keys and take possession of the property
Owning property and Swiss taxation
Property owners in Switzerland are taxed on an imputed rental value: an amount the tax authorities treat as income even if you live in the property yourself, based on what it could reasonably be rented for. In return, owners can generally deduct mortgage interest and documented maintenance costs from their taxable income, within rules that vary by canton.
A gain made on resale is generally subject to a real estate capital gains tax, and in most cantons the rate decreases the longer you have held the property before selling. Because imputed rental value, deductible costs and capital gains rules are set at cantonal level and change over time, our consultants coordinate with qualified tax specialists to help you understand how a purchase would affect your specific tax position, rather than offering general figures that may not apply to your canton.
Also Worth Reading
Frequently Asked Questions
Can I buy property in Switzerland with a B permit?
What is Lex Koller and who does it affect?
Do I need to sell my property if I leave Switzerland?
How much deposit do I need to buy a home in Switzerland?
Are notary and registration fees the same in every canton?
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