Swiss Property Guide - Property for sale in Switzerland

NEWS (10th March 2008)

NON SWISS CONTINGENT UNITS FOR SECONDARY HOMES IN VALAIS

For the Valais area, 99 units are given to foreign nationals per year for new and resale chalets: next authorizations are given on the 18th of April (very few units remain for this year). We highly recommend you to proceed before this date to get a chance to have a new property this year.

Re-sale properties from foreigners to foreigners and some new apartments do not fall in this category and can be purchased anytime.

Vaud (Leysin, Villars, Diablerets) is open to foreigners with a waiting time for property ownership from 6 months to 3 years.

Since December 2007, we had a few requests from abroad for relocation to Switzerland. There are various advantages (tax, safe environment, stable currency, excellent education, panoramas) to apply for the anual residency B permit which can be easily obtained. We can help you with formalities.

Alternatively, the G permit - crossboarder commuter, allows you to purchase a property under the name of a company. Your company activity can then be the rental of your property (applies for chalets, not apartments). You then need to make several entry and exits in the country within the year to manage your activity.

For more information, please contact us by phone: +41(0)27 203 61 11 or by email: info@swisspropertyguide.com.

NEWS (21th November 2007)

Change in the law for non swiss residents.

On 21st November 2007, the government of the canton Valais announced that the moratorium decided in December 2006 - prohibiting the signing of deeds of sale of real estate with non-Swiss residents in seven resorts of the canton - is to be replaced by new regulations valid from 23rd November 2007.

The aim of the new regulations is to control, at the cantonal level, the allocation of the quota of authorisations received every year from the federal government on the basis of the Lex Koller (the federal law on non-Swiss residents purchasing property in Switzerland). The new regulations, implemented by the cantonal government, only apply in the canton of Valais. The Lex Koller has not been changed nor repealed: the canton Valais will still receive its annual quota of authorisations, but the allocation of the quota within the canton will be distributed differently.

As with the 2006 moratorium, this move has been prompted by the strong demand for Swiss real estate from non-Swiss residents in recent years and the logistical issues that this has raised. 

How did the authorisation process work before the new regulations?
On the basis of the Lex Koller, the Federal Government issues  a certain number of authorisations every year that is then distributed to the cantons. The cantons with the highest density of tourist resorts receive the greatest proportion. Until this year, the canton Valais used to receive an annual quote of 310 authorisations. However, due to the strong demand, the Federal Government decided in November 2007 to increase  the annual quota granted to the canton Valais to 330.

Each canton then allocates the quota of authorisations to the communes, according to cantonal regulations.

After a non-Swiss resident has signed a notarised deed to purchase real estate in Switzerland, the notary public must apply for an authorisation to purchase on behalf of the buyer. Given the strong demand, particularly in the canton Valais, the annual quota is clearly insufficient. This has resulted in a waiting list that increases every year. According to the information provided by  canton Valais, there are currently no less than 1,290 deeds of sale waiting for an authorisation. In some resorts, it can take several years before the authorisation is granted.

What are the new regulations implemented by the canton Valais?
The current situation is qualified as unsatisfactory by the Government of the canton Valais. Therefore, the following new measures have been implemented:

The rules for the allocation of the annual quota (330 authorisations) within the canton have been modified as follows:

- 50% of the quota, i.e 165 authorisations, is reserved for projects of cantonal interest, such as tourism residences, holiday residences in new hotel developments etc.; this aims to limit the so-called "cold beds", i.e. holiday residences that remain unused and closed the major part of the year, to the disadvantage of the tourist resorts.

- The remaining 50% will be used as follows:? 60%, i.e. 99 authorisations, are reserved for the sale of new constructions.  40%, i.e. 66 authorisations, will be used to reduce the existing list of 1,290 deeds waiting for an authorisation.

As a consequence, there will be no more quota available for the sale of existing properties by Swiss residents to non-Swiss residents. Non-Swiss residents who purchased on the basis of an authorisation are still allowed to re-sell their property, after the possession period has expired.

Before signing a deed for the purchase of real estate, non-Swiss residents must apply for an authorisation. When an authorisation becomes available, the competent authority will then deliver a guarantee that an authorisation will be granted to the purchaser. Upon receipt of this guarantee, the buyer must sign the purchase contract and submit it to the authority within one month. Thereafter, the authorisation is granted. If the purchase contract is not signed within a month, the guarantee is no longer valid and no authorisation can be granted.

No re-sale during 10 years.

Under previous regulations any transfer of a property title to a non-Swiss resident required an authorisation from the Swiss government. The authorisation is attributed to a property and not the person. A property owner (whether a Swiss or non-Swiss resident that has signed their contract after the 23rd November 2007) can only sell a property, with an authorisation associated, to a non-Swiss resident after 10 years following transfer of title. This has been increased from the previous regulated timeframe of 5 years.

What does this mean for purchasers in the affected resorts?
Purchasers who have signed contracts prior to November 23, 2007 remain unaffected and will receive their authorisations in the normal course, except that the new quota allocation system is applicable: 66 authorisations per year will be reserved for existing contracts.

Purchasers in the affected resorts who have not signed contracts prior to November 23, 2007 will have to comply with the new regulations and will not be allowed to sign before receiving the guarantee of authorisation from the cantonal authority.

EU / EFTA nationals holding a residency permit in Switzerland ("B" permit) and who effectively reside in Switzerland will still be able to purchase without restriction.

For more information, please click here or contact us by phone: +41(0)27 203 61 11 or by email: info@swisspropertyguide.com.

NEWS (5th July 2007)

SWISS FEDERAL GOVERNMENT ANNOUNCES THE ABOLISHMENT OF THE LEX KOLLER

The law on the foreign ownership of Swiss property (Lex Koller) is to be abolished within the next three to five years.

This law was voted in1961 by the Swiss population to avoid a mass of foreign ownership in Switzerland.

The Swiss federal government has now announced that by 2010, each canton will have the responsibility for its own foreign property acquisition laws. This means that each commune will still have a set number of foreign purchase quotas but the Swiss Government will not impose a number.

At moment the Lex Koller restricts property purchases for non-Swiss nationals. As a result of this new initiative it is anticipated that the demand for Swiss homes will increase significantly, therefore creating strong capital appreciation in properties purchased prior to 2010.

For more information, please contact us by phone: +41(0)27 203 61 11 or by email: info@swisspropertyguide.com.

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