The Federal Act on the Acquisition of Immovable Property in Switzerland by Persons Abroad (“Acquisition Act“) sets out the circumstances in which foreign nationals require a permit to purchase real estate in Switzerland.
For conducting a commercial activity
No permit is required, regardless of nationality, to purchase property if the property is used for the purpose of conducting a commercial activity (e.g. hotels, restaurants, offices, manufacturing buildings, shopping centers, doctors’ offices). In exceptional cases, an apartment belonging to the property may also be included in the exemption from the permit requirement if it is essential for the operation of the business that a person is permanently present on the premises. However, this does not apply to real estate that is acquired merely as a capital investment or for the purpose of trading.
Acquisition of a main residence
No permit is required of any person, regardless of their nationality, who acquires a property in their legal and actual place of residence in Switzerland for their own use (main residence). If the foreign national purchases building land to construct their main residence on it, the same applies if construction begins within one year of the purchase. If the person moves within Switzerland, this does not trigger an obligation to sell the real estate. A new main residence can be purchased and the previous one can be used as a second home or holiday home or rented out. However, this is only possible if it is not intended to circumvent the law.
Acquisition of real estate by foreigners resident in Switzerland
If a person is actually resident in Switzerland and holds a valid permanent residence permit (C), there are no legal requirements for foreigners regarding the acquisition of real estate. The same applies to persons whose actual and legal residence are in Switzerland if they are citizens of an EU or EFTA country. EU/EFTA nationals with a cross-border commuter permit (G) work in Switzerland but have their main residence in another treaty state. Since they do not have a residence in Switzerland, they therefore require a permit. Nationals of a non-EU/EFTA country (so-called third-country nationals) without a permanent residence permit (C) are subject to the permit requirement, except for the purchase of their main residence.
Foreigners residing abroad
EU/EFTA citizens and third-country nationals residing abroad require a permit to purchase property for residential purposes.
Reasons for granting a permit
A permit for the purchase of a property requiring a permit can only be granted for the reasons provided for by the Permit Act and, where applicable, by cantonal law. An important reason in practice is the purchase of a holiday home.
Holiday homes
The dream of a holiday home in the Swiss mountains is subject to the following restrictions for foreigners: a person may not own more than one such property. Furthermore, the holiday home may only be rented out periodically and not all year round. There are quotas for holiday homes and apartments in so-called aparthotels. The total annual quota of 1500 permits is distributed among the cantons. Within a canton, permits are only issued to tourist destinations with a high volume of tourism. Certain cantons, such as Zurich, have even banned the sale of holiday apartments or aparthotels to foreigners altogether.
Acquisition by companies
A permit is also required if the real estate buyer is a company with its actual or statutory headquarters abroad or a foreign-controlled Swiss company (such control is assumed if a person abroad owns more than one-third of the company capital, has more than one-third of the voting rights, or has granted the company significant loans).
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Disclaimer:
This article should not be construed as legal, financial, or business advice. The information does not represent the views of smarti. Neither smarti nor its guest contributors assume liability for the accuracy, comprehensiveness, or timeliness of the information provided. We strongly recommend seeking professional advice before making business decisions.
