Switzerland » The Purchase Process

A paradise on earth, known for its majestic beauty, Switzerland is a place where many people would love to invest in. The beauty of Switzerland is not the only thing that lures the prospective property buyers to the land of dreams. It has an enviable lifestyle to offer. The cool and healthy Swiss climate, efficient railways, low crime rate, great schools, tax incentives are all factors that make it an ideal place for investment. It is no wonder that Switzerland was voted as the second best place to live in according to a recent survey. The icing on the cake is that it has world’s most stable economy. Having a cheaper property market as compared to France makes Switzerland a hot favorite among property investors.
According to new Swiss law a certain quota has been fixed for foreigners who can now buy Swiss property in specific localities that were previously inaccessible. The best bargains for Swiss property purchase would be in Valais that has the highest peaks of Switzerland; among them is the world-famous Matterhorn. The high peaks and ski resorts have made Valais a popular tourist place ensuring a great rental market. The added benefits of buying a property here are that it promises a faster property appreciation and in Valais there is zero inheritance tax.
To buy Swiss property you can seek mortgage and mortgage rates can start at 2.5 %.
Foreigners can buy only one property at a time normally  unless they have Swiss residency which is the permit type B. However it comes with a size restriction that cannot be exceeded. For those who have the permit type C there is no restrictions for buying Swiss property.

There are certain areas that are not allowed for buying among them is Zermatt which although is a tourist area but is not open for buying property by foreigners. Rural areas and non-tourist zones should not be considered for property investment. Some areas have partial or total ban while others permit real estate buying to those who have permits. In Geneva you cannot buy property without permits. In Saas there are fee-restrictions.

The Lex Frederich Act restricts foreigners without a Swiss residence permit to acquire property in Switzerland. Some Swiss cantons allow the foreigners to invest into buildings for low rent. The advantage for this is than you are not liable to pay any local taxes for 20 years and after this period you are allowed to raise the rent according to the market offer.  For those with permit type B and C  can buy property in  areas with restrictions but make sure that every canton has its own rule. Before buying a property you should be well aware of all the restrictions and for that you can contact a local Notary who can provide you with the relevant information.