Buying property in Switzerland as a foreigner: 2025 guide

Switzerland is renowned for its stunning landscapes, high quality of life, and stable economy, making it an attractive destination for real estate investors and families looking to relocate. In this guide, we will explore the benefits of buying property in Switzerland, current market trends, legal requirements, and a step-by-step process to help you make an informed decision.

What is Switzerland like?

Switzerland, although not a member of the European Union, is part of the European Free Trade Association (EFTA) and maintains strong economic and political ties with the EU through various bilateral agreements.

It is known for its breathtaking landscapes, including the Swiss Alps, picturesque lakes, and well-preserved historic cities.

The country is divided into 26 cantons, which serve as the main administrative divisions and possess a high degree of autonomy.

Home to more than 8.7 million people as of 2025, Switzerland's rich cultural and geographic diversity make it an attractive destination for investors and explorers alike.

Population distribution across Switzerland's cantons

Why invest in Switzerland?

Switzerland's appeal lies not only in its natural beauty and high quality of life but also in its significant investment potential.

The country has over 1,500 lakes, alongside a generally mild climate throughout most of the year.

Switzerland is renowned for its stability and prosperity, consistently ranking among the wealthiest countries globally. Its strong economy is bolstered by sectors such as finance, pharmaceuticals, and technology.

In 2023, Switzerland welcomed a substantial number of international tourists, contributing significantly to its tourism industry and local economy.

American tourists alone accounted for around 3 million overnight stays, reflecting a significant growth compared to pre-pandemic levels. Overall, the total number of overnight stays by tourists in Switzerland was 20.8 million, showing a strong recovery and optimism for continued growth in the tourism sector in 2025 (source: SwissInfo).

What are the current market trends in Switzerland for 2025?

The Swiss real estate market is exhibiting several notable trends projected to continue into 2025:

  • Rising residential property prices: Despite higher interest rates, demand for residential properties remains strong, leading to price increases. Condominium prices rose by nearly 3.5% in 2023, with single-family homes up by about 2.5%. This upward trend is expected to persist into 2025.
  • Increased investor confidence: The Swiss Real Estate Sentiment Index has rebounded from previous lows, indicating renewed optimism among investors. This resurgence is attributed to stabilized interest rates and improved economic conditions, suggesting a positive outlook for 2025.
  • Urban densification and architectural uniformity: Rapid urban development has led to the creation of similar-looking mixed-use districts across cities like Zurich, Geneva, and Lausanne. This trend reflects a focus on density and energy efficiency, often at the expense of architectural diversity.
  • Challenges in the commercial real estate sector: The commercial real estate market faces headwinds due to higher borrowing costs and reduced demand for office spaces post-pandemic. Major financial institutions have identified this downturn as a significant risk, highlighting potential challenges in 2025.

Average cost of buying property in Switzerland

CityCost in CHF per m²Cost in USD per sq ft
ZurichCHF 15,810 - 16,161$1,468
GenevaCHF 13,000 - 13,426$1,309
BaselCHF 8,750 - 9,500$937
LausanneCHF 9,500 - 10,000$961
LucerneCHF 8,500 - 8,700$810

While these figures provide a snapshot of the current market, property prices in Switzerland can vary significantly based on the exact location, property type, and market conditions.

You can easily track the latest trends and price evolutions on our dedicated page:

What are the popular regions and areas to buy property in Switzerland?

Switzerland's rich geographical diversity and cultural heritage mean you can choose from a wide array of regions and areas, each offering its own unique appeal and lifestyle.

Popular regions for investment and living

  • Zurich: As the largest city in Switzerland, Zurich is known for its high quality of life, vibrant cultural scene, and strong economy. Property types range from modern apartments in the city center to luxurious homes in the suburbs.
  • Geneva: Located by the stunning Lake Geneva and the French border, Geneva is a global city with numerous international organizations. It offers elegant apartments, lakeside villas, and townhouses in prestigious neighborhoods.
  • Lucerne: Famous for its medieval architecture and beautiful lakeside setting, Lucerne attracts those looking for a mix of historical charm and modern amenities. Housing options include historic apartments and contemporary homes.
  • Interlaken: Nestled between Lake Thun and Lake Brienz, Interlaken is a gateway to the Swiss Alps and a popular destination for adventure sports enthusiasts. Properties range from charming chalets to modern condos with mountain views.
  • The Lake Geneva Region: Including cities like Lausanne and Montreux, this area is renowned for its beautiful scenery, vineyards, and cultural events. Properties range from waterfront apartments to luxury villas.
  • The Valais Canton: Known for its ski resorts like Zermatt and Verbier, the Valais Canton is ideal for winter sports enthusiasts. Available properties include ski-in/ski-out chalets, holiday apartments, and luxury mountain homes.

Can foreigners easily purchase property in Switzerland?

The process of purchasing property in Switzerland as a foreigner is more complex compared to other countries, due to specific regulations and restrictions.

Foreigners typically need a permit to buy property in Switzerland. This applies to non-resident foreigners and residents from non-EU/EFTA countries. EU/EFTA residents living in Switzerland do not face these restrictions and can buy property without special permits.

The type of property is also relevant:

  • Primary residence: Foreigners with a valid Swiss residence permit (B or C permit) can purchase property for their primary residence without restrictions.
  • Secondary residence: Non-residents face strict limitations on buying secondary residences. The total number of permits issued annually is limited.
  • Investment properties: Buying property for investment purposes is generally restricted for non-residents. However, commercial real estate (like hotels and businesses) may be allowed.

The Lex Koller law governs the acquisition of real estate by non-residents. This law limits the purchase of residential property by foreigners and is enforced strictly.

Certain regions, particularly tourist areas like Zurich, Geneva, and ski resorts, have additional restrictions and quotas on foreign property ownership.

Foreigners are also generally restricted to buying properties no larger than 1,000 square meters (10,763 feet) of land.

What is the step-by-step process for buying property in Switzerland?

1. Obtain a Swiss Residence Permit

A Swiss residence permit is essential for any significant financial transaction in Switzerland, including buying property, setting up utility services, and filing taxes. There are several types of permits, with the B permit being the most common for foreign property buyers.

You can apply for a residence permit at the cantonal migration office where you intend to live. The application requires:

  • a valid passport;
  • a completed application form;
  • a reason for requesting the permit (such as property purchase);
  • proof of financial means;
  • health insurance coverage.

The process can take from a few weeks to a couple of months.

2. Open a Swiss bank account

A local bank account is necessary for managing payments related to the property purchase, including the deposit, purchase price, taxes, and ongoing utility payments.

Most banks will require:

  • your residence permit;
  • passport;
  • proof of employment or income;
  • possibly a proof of address.

3. Start searching for properties

Explore online listings on Properstar to find properties for sale in your area of interest. You can leverage our advanced filters and even draw your preferred area on the map.

Consider hiring a real estate agent to gain better insights into the market and assistance in finding properties that meet your criteria and budget.

4. Find the right real estate agent

The right real estate agent can provide insights into the local market, assist in finding properties that meet your criteria, and navigate the negotiation process.

Here's how to ensure you pick the best professional for your needs:

  • Local expertise: Look for agents with a deep understanding of the area you're interested in. They should be knowledgeable about local property trends, prices, and the unique aspects of the community.
  • Language skills: If you're not fluent in one of Switzerland's official languages (German, French, Italian, or Romansh), finding an agent who can communicate effectively in your language is essential. They'll act as your liaison with sellers, lawyers, and other parties involved in the process.
  • Experience and credentials: Check the agent's experience and qualifications. They should have a solid track record of assisting foreign buyers and be registered with a recognized real estate association in Switzerland.

You can utilize Properstar's agent search feature to find reputable local real estate agents. Our platform offers access to a wide network of professionals vetted for their expertise and reliability, making it easier to find someone who meets your specific needs.

5. Conduct property viewings

Visit potential properties to assess their condition, location, and suitability.

6. Legal checks and due diligence

The Land Registry (Grundbuchamt) is crucial to verify the property's legal status, ensuring it's free of debts, charges, or embargoes and that the seller holds the legal right to sell. This can be done by requesting an extract from the Land Register.

Ensure the property complies with local zoning and urban planning laws. This is particularly important for new builds or rural properties, where there might be restrictions.

Although not a legal requirement, it's highly recommended to conduct a property survey to check the physical condition of the property. This can uncover potential issues with the building's structure, utilities, or land.

7. Make an offer

With the help of your real estate agent, make an offer on the property. If accepted, you'll proceed to the contract stage.

8. Sign the preliminary contract (Vorverkaufsvertrag)

This preliminary agreement between buyer and seller (Vorverkaufsvertrag) secures the purchase and typically involves a deposit from the buyer (usually 10% of the purchase price). It specifies the sale's terms and conditions and commits both parties to the transaction.

If the buyer pulls out, they lose the deposit. If the seller pulls out, they must pay back double the deposit amount.

9. Finalize mortgage arrangements (if applicable)

Finalize the terms with your bank if you're financing the purchase through a mortgage.

10. Sign the deed of sale (Kaufvertrag)

The final step is signing the deed of sale (Kaufvertrag) before a notary, transferring ownership. The buyer must pay the remaining purchase price and all associated taxes and fees at this time.

Both parties must present their identification, the residence permit, proof of deposit payment, and any mortgage details, if applicable.

11. Register the property

After the deed is signed, the new owner must register the property at the local Land Registry. This step is essential for legal protection.

12. Pay associated taxes and fees

Buyers are responsible for paying property transfer tax and any additional notary and registry fees. Depending on the canton, the total cost can range from 3% to 5% of the purchase price.

Taxes for property purchases

TaxPercentage
Property Transfer TaxVaries by canton, generally between 1% and 3%
Notary feesAround 0.2% to 0.5% of the purchase price
Land Registry feesBetween 0.3% and 0.5%
Legal feesTypically around 1% of the purchase price

Given the complexity of the process, it's advisable to hire a lawyer specialized in Swiss property law. They can handle legal checks, negotiations, and paperwork, ensuring your rights are protected throughout the purchase.

Some valuable resources for official information include:

  • Swiss Federal Office for Migration: For information on residence permits and legal requirements for foreigners.
  • Land Registry (Grundbuchamt): For checks on property legal status.
  • Swiss Federal Tax Administration (FTA): For details on taxes related to property transactions.
  • Swiss Notaries Association: Offers insights into the notary process and legal requirements.

13. Transfer utilities

Transfer utilities to your name and set up local services.

How can I get a mortgage in Switzerland?

In Switzerland, there are several types of mortgages to consider:

Mortgage typeDescriptionProsCons
Fixed-rate mortgageInterest rate remains the same for the entire term- Predictable monthly payments
- Protection against interest rate fluctuations
- Higher initial rates compared to variable-rate
- Less flexibility if market rates drop
Variable-rate mortgageInterest rate can change based on market conditions- Potentially lower initial rates
- Flexibility to benefit from falling interest rates
- Unpredictable monthly payments
- Risk of higher costs if interest rates rise
LIBOR mortgageLinked to the London Interbank Offered Rate (LIBOR), with periodic adjustments- Often lower initial rates
- Potential savings if LIBOR rates remain low
- Exposure to interest rate fluctuations
- Complexity in understanding rate adjustments
SARON mortgageLinked to the Swiss Average Rate Overnight (SARON), an alternative to LIBOR- Transparent and robust benchmark
- Potential for lower rates compared to fixed-rate
- Similar risks to LIBOR mortgages
- May have more frequent rate adjustments
Combination mortgageMix of fixed-rate and variable-rate components- Balanced risk and flexibility
- Ability to secure part of the mortgage at fixed rate
- More complex to manage
- May incur additional fees for mixed components
Interest-only mortgageOnly interest payments are made during the mortgage term, principal is repaid at the end or upon property sale- Lower monthly payments during the term
- Potential tax benefits
- Principal must be repaid at the end
- Risk of not building equity in the property

Key considerations

  • Financial stability: Ensure stable income and financial history to meet eligibility criteria.
  • Down payment: Minimum 20% down payment required, with at least 10% from personal funds.
  • Loan term: Consider the length of the mortgage term and how it aligns with your financial goals.
  • Market conditions: Stay informed about market conditions and interest rate trends to make an informed decision.

Useful resources

What are the pitfalls of buying property in Switzerland?

Purchasing property in Switzerland can be a rewarding investment, but there are several potential pitfalls to be aware of. Understanding these challenges can help you make informed decisions and avoid common mistakes.

1. Restrictions on foreign buyers

Switzerland has specific restrictions on property purchases by non-residents. The "Lex Koller" law limits foreign ownership of residential property, particularly in tourist areas. Non-residents may need special permits, and the process can be complicated.

2. High property prices

Switzerland is known for its high cost of living, and property prices reflect this. Real estate in popular cities like Zurich, Geneva, and Basel can be particularly expensive. Budgeting accurately and securing sufficient financing is crucial.

3. Additional costs and taxes

In addition to the purchase price, buyers must consider various additional costs:

  • Property transfer tax: Varies by canton, generally between 1% and 3%.
  • Notary and legal fees: Typically around 0.5% to 1%.
  • Land registry fees: Approximately 0.3% to 0.5%.
  • Annual property taxes: These can vary significantly depending on the location.

4. Mortgage constraints

Securing a mortgage in Switzerland can be challenging, especially for non-residents. Lenders may impose stricter conditions, require higher down payments, and offer less favorable terms. Understanding the mortgage market and getting pre-approval can mitigate some of these issues.

5. Language barriers

Switzerland has four official languages (German, French, Italian, and Romansh). Depending on the region, you may encounter language barriers when dealing with local authorities, real estate agents, and legal documents. Hiring a bilingual lawyer or agent can help navigate this challenge.

6. Property condition and maintenance

Some properties, especially older ones, may require significant maintenance and renovation. Conducting a thorough property survey is essential to identify potential issues and estimate repair costs.

7. Zoning and planning regulations

Swiss zoning laws and planning regulations can be stringent. Ensuring that the property complies with local zoning laws and understanding any restrictions on renovations or new constructions is vital.

8. Limited rental potential

If you plan to buy property for rental income, be aware that the Swiss rental market is highly regulated. Rent controls and tenant protections can impact profitability. Additionally, short-term rentals (e.g., Airbnb) may face local restrictions.

9. Currency risk

If you are financing the purchase in a currency other than Swiss Francs (CHF), exchange rate fluctuations can affect your mortgage repayments and overall investment. Consider hedging strategies to manage currency risk.

10. Lengthy bureaucratic processes

Swiss bureaucracy can be slow, particularly regarding property transactions and obtaining necessary permits. Patience and proper planning are essential to navigate these processes effectively.

Frequently asked questions about property purchases in Switzerland

Foreigners face restrictions when buying land in Switzerland. Generally, they are limited to buying land for:

  • Building a primary residence if they have a Swiss residence permit.
  • Secondary residences in designated tourist areas, subject to size limitations and permit quotas.
  • Commercial purposes with fewer restrictions compared to residential land.

Property insurance is highly recommended in Switzerland and can cover:

  • Building insurance, which is often mandatory and covers structural damage.
  • Contents insurance, which protects personal belongings within the property.
  • Liability insurance, which covers damage caused to third parties or their property.

If you live abroad, consider hiring a property management company to handle maintenance, tenant relations, and rent collection.

Yes, Switzerland has strict environmental regulations that may impact property purchases, such as:

  • Energy efficiency requirements for new buildings and renovations.
  • Restrictions on land use in protected areas and near water bodies.
  • Waste management and recycling regulations for property developments.

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