Property Investment in Switzerland as a Foreigner

​Frequently asked questions

• Can foreigners buy real estate in Switzerland?

  Yes. Foreigners are allowed to buy real estate in Switzerland. But there are restrictions: you need to get a purchase permit, which is issued according to quotas. In some cantons it is forbidden to buy real estate; in others, you can only buy real estate for temporary residence, but not a permanent residence.

  Residents and citizens of Switzerland buy real estate without restrictions.

• How much does the average house cost in Switzerland?

  Swiss real estate prices are among the highest in Europe. The average cost of 1 m² of housing is €14,300.

  A 180 m² house in Switzerland costs approximately 2 million euros. Investors most commonly buy villas and chalets. Prices for luxury properties are three to four times higher.

• Is real estate cheap in Switzerland?

  No. Swiss real estate prices are among the highest in Europe. The average cost of residential real estate is €14,300 per 1 m².

• Is Switzerland good for real estate?

  Yes. Real estate in Switzerland is among the best and most expensive in Europe. The average cost of residential property is €14,300 per 1 m². At the same time, Swiss real estate keeps growing in price, by 1.1% quarterly. For example, an investor who bought a 100 m² apartment in Switzerland seven years ago for €862,000, can now sell it for €1,430,000.

• How much is property tax in Switzerland?

  Buyers of real estate in Switzerland pay a one-time transfer tax. The rate is 0.2—3.3%, depending on the canton. For example, in Zurich, the transfer tax is 0%. 

  The annual ownership tax for property owners in Switzerland is 0.05—0.3% of the cadastral value. The rate depends on the canton; some have abolished the property tax, for example, Zurich.  

  Income from renting out a property is included in the income tax payment base. The owners who don’t rent out the property, pay the income tax on imputed income that they could receive from renting it out. Imputed income is equal to 70% of the average market rental price of a similar property. Imputed rental income is also included in the income tax base.

• Is it a good time to buy property in Switzerland?

  Buying property in Switzerland can be a good decision if you are looking for a stable and potentially price-growing asset, particularly if you plan to stay in the country long-term. 

  However, it is important to understand the regulations, costs, and market conditions. Consulting with a local real estate agent, financial advisor, and legal expert can help you make an informed decision based on your specific circumstances.

• Can I move to Switzerland if I buy a house?

  Owning property in Switzerland does not automatically grant you residency. You will need to apply for the appropriate residency permit based on your situation. Owning property can support your application, particularly if you make significant investments or demonstrate financial independence.