Switzerland is an attractive investment option for those looking to purchase property in Europe; the demand from both individual buyers and companies is strong and investors will see a good return on their investment.
Particularly popular locations include Lake Geneva and the cantons of Vaud, Valais, Geneva, Zug, Zurich, Ticino, attracting many high net worth individuals.
However, there are challenges to purchasing Swiss real estate; foreign nationals who are domiciled elsewhere and who plan on buying a holiday home in tourist locations for residential purposes must apply to the cantonal authorities to do so. Once approval has been sought, there are further restrictions, such as the size of the property you can buy and the amount you can invest. As such, wealthy foreigners are often put off by the obstacles.
If you are a non-European Union (EU) citizen, you must either apply for a Swiss residence permit or purchase a property specifically in “Andermatt Swiss Alps Project”.
If applying for a residence permit, you can negotiate a lump sum taxation with the relevant canton, or become the director of a Switzerland-based company and automatically qualify for one. Alternatively, “Andermatt Swiss Alps Project”, an area where foreign buyers can buy property as they wish, free of restrictions or permits. Property can also be bought in a company’s name and can be sold at any time.
Our team of multilingual brokers are knowledgeable about the buying process in Switzerland and other European locations and can guide you through the intricacies of the respective markets. We can assist with the application for a residence permit and make sure you are prepared for your experience of the Swiss property market.
We can also guide you in your commercial property acquisitions. It is not necessary for companies to obtain approval prior to purchasing commercial real estate, as long as it’s for a business establishment, including offices, manufacturing, workshops and production facilities. However, companies cannot buy residential property in Switzerland.
If you are thinking of investing in Swiss real estate, get in touch to discuss your requirements and we will work with you to provide the best solution.
Hugh Wade-Jones is the Managing Director of Enness International, the specialist, high-end lending division of Enness, which caters for clients looking to acquire or refinance overseas property, specifically those located in France, Monaco, The Balearics and Switzerland.
Read The Sybarite’s interview with Hugh.
