The process of buying property in Switzerland

In the 80s. after a wave of speculation with real estate in Switzerland, the country's housing market was practically closed to foreigners, real estate transactions here are strictly controlled by the state. Basic housing (used for permanent residence) in Switzerland is easy to acquire if you have citizenship or a residence permit in the country. But as for the "second home" - real estate for temporary residence or vacation, in most cantons, restrictions are imposed on its purchase by foreigners. All these restrictions help the country maintain the stability of the real estate market. Conditions for buying real estate for foreigners The purchase of real estate by foreigners in the country is limited by Friedrich's law. A non-resident who does not have a residence permit in Switzerland can obtain a permit to purchase housing in the country, the number of such permits is limited and distributed by cantons. The state issues approximately 1,440 permits throughout the country annually. The notary conducting the transaction must obtain permission for the foreigner to buy real estate from the Federal Department of Justice and Police, and then from the cantonal authorities. Before buying, it is better to check the availability of permits in the selected canton, this can be done through a real estate agency. The period for obtaining a permit depends on the canton and the location of the property, usually takes two to three months, but can last up to six months or a year. Restrictions: - a foreign citizen with his family can purchase only one property in Switzerland; - in all cantons there are restrictions on the size of the area of housing purchased by a foreigner. The living area of the property must not exceed 200 sq. m, if a chalet with a land plot is purchased, then the area of the plot is limited to 1000 sq. m; - foreigners who own real estate in Switzerland are issued an annual visa with the right to stay for up to three months in each half of the year; - for non-residents there are additional conditions for the use and resale of real estate in Switzerland. A foreigner can sell his home not earlier than after 5 years of property ownership. But under certain circumstances (health problems, financial difficulties), an exception can be made only if the owner proves that these circumstances arose after the acquisition of the property. At the same time, the cost for the sale of housing should not exceed the purchase price. Resale tax is differentiated and depends on the period of ownership - the longer the period of ownership, the less tax; - Swiss law allows renting purchased housing for up to 11 months a year, while at least three weeks a year a foreigner must use the property himself; - a foreigner can purchase a land plot in Switzerland, but only with the right to build a house. All potential buyers must provide proof that they do not own any other private property in the country at the time of purchase. These rules are recorded in the land register. In March 2012, a nationwide referendum was held in Switzerland, in which the majority voted to ban the construction of new, so-called "second homes" for temporary residence. The number of such houses in the future should not exceed 20% of the total number of houses in the corresponding commune. This decision was made in connection with the dissatisfaction of the Swiss with the rise in property prices and a large number of empty housing. Applications for construction will be accepted until 2013, there are no restrictions on the duration of projects yet. The largest number of permits for the purchase of real estate by foreigners is issued in the cantons of Valais, Graubnden, Ticino, Vaud and Bern. Foreign citizens can purchase housing in other cantons - Friborg, Lucerne, Saint-Gall, Neuchtel and some others. Number of quotas issued by canton in 2011 (according to Sharonoff) Valais - 330 Graubnden - 290 Ticino - 195 Vaud - 175 Bern - 140 Friborg - 50 Lucerne - 50 St. Gallen - 45 Neuchtel - 35 Purchase process All transactions in Switzerland with real estate go through an independent notary who represents the interests of both the seller and the buyer. The notary also acts as the guarantor of the transaction. Contracts that do not meet the formal requirements are invalid and invalid. All documents are signed in the presence of a notary. First, a preliminary agreement is signed between the seller and the buyer, which is certified by a notary. Notaries, as a rule, use a standard form of contract, if the parties wish, additional clauses can be included. A deposit in the amount of 5% to 10% of the cost of housing is required. The deposit must be transferred to the notary's account. If it is not possible to be present at the transaction, then either party can appoint a lawyer to whom a power of attorney will be issued to sign the documents. The notary checks the legality of the transaction, sends a request for permission to purchase real estate to the cantonal authorities, draws up a purchase and sale agreement. To pass the federal verification, the buyer must fill out a questionnaire. After the notary has received all the completed and signed documents and the deposit has been transferred, the preparation of the sales contract begins. Simultaneously with the signing of the contract, the payment for the property must be transferred. However, if the contract is concluded for the construction of a new house, then payment is made in stages: first the first part, after the completion of construction - the second, and upon transfer of property - the remainder. The notary then registers the documents with the land registry of the respective canton. Ownership is transferred to the new owner when the document is registered. When buying a property, the buyer pays notary and registration fees, the amount of which varies from canton to canton. In total, costs range from 2.5% to 5% of the cost of purchased housing. This includes tax on the transfer of land ownership (from 0 to 3.3%), notary fees (0.5-1.2%), registration fee (0.5%). Real estate agency services cost 0-5%. Fees per canton excluding real estate agency services: Vaud - 5% Valais - 2.5% Bern - 3% Friborg - 4% Payment, financing At the time of the transaction, the buyer's money must be in a Swiss bank. When paying for the purchase, the amount assigned is transferred to the notary's account. The amount of the mortgage loan is usually about 60% of the appraised value of the property. Interest rates in Switzerland are low - 1.8-3.5%, the minimum mortgage amount is 350,000 Swiss francs, the loan is issued for a period of up to 50 years. When the mortgage is paid off, the buyer receives a tax break - he is exempt from tax on estimated rental income and estate tax. Thus, the amount of annual real estate expenses is reduced. We are grateful to SharonoFF for their help in preparing this article. HomesOverseas.ru