1) Conditions of sale

The sale of real estate to persons domiciled abroad is subject to various laws and edicts. The Federal law for the acquisition of freehold property by non-residents, commonly known as « Lex Furgler-Koller-Friedrich;» stipulates sales to foreigners on the basis of annual quotas per tourist region (Cantonal contingent). This law came into effect on the 1^st January 1985 and followed different legislations, in particular the Lex Furgler. Its goal is to limit the acquisition of apartments and other properties in Switzerland by foreigners.

These quotas are sometime are completely used during the year and yo have to wait until the following year, or even further (2 years in some cases) until an authorisation is available.

This is valid for the new properties and/or for the one owned by Swiss or foreigners residing in Switzerland. The non residents that were granted a quota can transfer it and therefore when they sell their property they can be transferred quickly (about 3 to 4 months.)

2) Conditions of purchase

Firstly, it must be pointed out that neither a fictitious person such as a limited company nor any other forms of anonymous legal entity cannot acquire a holiday home. The purchase must be made in one’s own name.

Also, those with a C permit are treated as Swiss nationals for the purchase of buildings and can therefore acquire any apartment, chalet, building, land or villa in Switzerland.

European nationals from an EU country (or EFTA) benefiting from a B permit can acquire properties as a Swiss, including for speculation. Holders of B permits coming from any other country can also buy property freely as long as it is their main residence. If they purchase as a second home, they must also request an authorisation.

3) Legal restrictions

a) Non-Swiss (not residing in Switzerland) may only own ONE property per family in Switzerland: family defined as husband and wife and/or under-age children. After the age of 18, the son or daughter of an owner may purchase one property in his/her own name, provided he/she can prove his/her financial independence.

b) The foreign purchaser may buy an apartment with up to 200 m2 of living area. The purchase of an individual chalet is also possible if the land does not exceed about 1,000 m2 (to date the limit has reached plots up to 1,750 m2). In this case, the inner living area cannot exceed 200 sqm (but you can add to this surface the garages and the rooms like cellars, heating room etc…). Special authorisations may be obtained if the owner can prove the necessity (large family, grand style of life) or for land if it is sloping or the configuration justifies it.

c) The owner, or his family, must occupy his apartment as a holiday home, in principal every year, but for not more than six months as per the law for stays of foreigners in Switzerland.

d) The property can be rented out for up to 11 months per annum. Annual rentals are not allowed.

e) The property cannot be resold within 5 years. (Except in case of emergency, like death, illness etc. but then it must be resold without profit) Delay starts as soon as the property is transferred into the name of the new owner and not when the initial sales agreement is signed.

f) In certain cases, if the apartment is not occupied for a long period, the property must be resold within a time limit of two years.