The Swiss property market offers a sound investment and attracts interest from all over the globe.  Following upheavals in the property market in the early 1990’s the buying of Swiss property by non-citizens was highly restricted.  The main reason for the restriction on foreign property ownership stemmed from properties being brought and left empty for years at a time.  Due to the taxation regulations, this left a large void in the local tax revenues of some municipalities and cantons.  This gap in tax revenues then directly impacted the maintenance of infrastructure in Swiss townships. 

In January, 2007 the Federal Government of Switzerland put a new scheme in place to ensure that non-citizens could buy Swiss property without overheating the market or failing to meet minimum residential requirements.  In straight forward terms, the Federal Government made available a limited number of permits for non-citizens to buy Swiss property in any given year.  Most of these permits are within the resort areas in Switzerland, with the largest choice of properties available within the French speaking cantons .

These permits are then distributed amongst the 26 cantons in Switzerland.  A non-citizen must apply for any available permits in the canton in which they wish to buy and if successful then seek authorization from the cantonal authority in order to gain the title to the property.  Each of the 26 cantons has their own rules and these rules are further complicated by the rules of the municipalities within each canton. 
The following are the details of each of the cantons in Switzerland:

During 2007, the new regulations caused much confusion in the Swiss property market.  Overseas real estate agents who sold property in Switzerland as part of their global portfolios had difficulty understanding the new rules, local regulations and appropriately advising their clients.  Unfortunately, without local knowledge some potential Swiss property owners were misadvised leading to delays in the approval and authorization process for their property purchases. By 2010 each canton will have responsibility for their laws with regard to foreign property ownership.  This will mean that real estate agents and potential Swiss property buyers will need to know which cantons are offering permits along with their individual requirements and laws for authorization of the property purchases.  Some of the current requirements include a restriction on the use of the property, for example there may be a requirement that the purchaser resides in the property for a certain period each year (usually three weeks) or how many months of the year the property can be let.  Other regulations may include the size of the property that a non-citizen can purchase.  Non-residents are liable for tax on any income generated from Swiss sources including rental income and these taxes include federal, cantonal and municipal taxes.   Swiss property is a stable investment both short and long-term 
Even with the slightly complex Swiss property regulations, the Swiss property market is still a sound investment for foreign property owners.  The Swiss property market was immune from the property bubble experienced in the rest of the world due to a correction to the market in the 1990s.  Therefore, the current housing prices are not over-inflated nor will they experience the kinds of retraction seen elsewhere.  The following is a comparison of house price changes in nominated countries from 2006 to the first quarter of 2008:

Buying property in Switzerland made easy and hassle-free 
Swiss-Sun has been specializing in the Swiss property market for a number of years; they have the experience and local knowledge to provide foreign Swiss property buyers with a hassle-free property purchase.  Swiss-Sun can let you know in advance which resorts and properties in each canton have permits available for buying property.  Having a local source enables you to not only know where the permits are available for properties but also which resorts, towns and cities are popular tourist destinations with a view to rental yields on your investment. Due to Swiss-Sun being dedicated to only selling property in Switzerland and their local presence, they have the experience and understanding of the local regulations and procedures for buying Swiss property.  This ensures that your permit application and property purchase documents are prepared correctly and have a smooth transition through the correct channels.  Also as important, you will understand what restrictions and regulations your property purchase is subject to in each canton.  Most other real estate agents will give you a time frame of six months for purchasing Swiss property, Swiss-Sun can obtain permits for resort properties in as little as two to three months for their clients. Swiss-Sun is the perfect property agency to help you make informed decisions when buying Swiss property.  They not only have the local knowledge but understand local regulations – making your Swiss property purchase hassle and headache free.  Contact Swiss-Sun today to find out where permits are currently available for your investment in or purchase of property in Switzerland.

Bookmark

Hide Sites