How can a foreigner buy property in Switzerland?
Buying property in Switzerland as a foreigner is possible, but only under strict conditions. Find out who falls under the Lex Koller, which permits are required, and what the real costs are.
Foreign property purchase in Switzerland — what is the legal framework?
The Swiss property market for foreign buyers is governed by a single law: Lex Koller (officially: Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland, abbreviated BewG, 1983, amended several times). This federal law determines who may buy property without authorisation, who must apply for prior approval, and who is subject to a complete ban.
The purpose of the Lex Koller was to prevent the Swiss property market from being “taken over” by foreign capital. The law has been the subject of political debate for decades — there were periods when easing it was planned, but in 2025 parliamentary proposals pointing toward tighter rules are also on the agenda.
Cantonal differences: the Lex Koller is a federal framework rule, but the cantons may specify the authorisation procedure, quotas and processing deadlines through their own regulations. In Graubünden, Valais (Wallis) and Ticino — where there are many holiday properties — practice and quotas differ from those in the urban cantons (Zürich, Bern, Geneva).
Who may buy? Eligibility of EU and non-EU citizens
The situation of Hungarian citizens (EU citizens)
Hungary is an EU member state, so Hungarian citizens fall under the FZA. In practice, this means:
A Hungarian citizen domiciled in Switzerland, with a valid residence permit (B, C, L permit) may buy property under the same conditions as a Swiss citizen — the Lex Koller does not apply to them.
A Hungarian citizen not domiciled in Switzerland (for example, someone wishing to buy a holiday home from Hungary) falls under the Lex Koller, and requires prior official authorisation — which is granted for holiday properties only within a limited quota.
The connection between permit types and property purchase:
Permit type | Possibility of buying property |
|---|---|
C permit (Niederlassungsbewilligung) | Unlimited, equivalent to a Swiss citizen |
B permit (Aufenthaltsbewilligung B) | Purchase of a primary residence is possible without authorisation; investment property is restricted |
L permit (Kurzaufenthaltsbewilligung) | Restricted; typically only a primary residence |
EU citizen not domiciled in Switzerland | Falls unter das Lex Koller fällt; bewilligungspflichtig |
Situation von Staatsangehörigen aus Drittstaaten
Für Staatsangehörige des Vereinigten Königreichs (seit dem Brexit), der USA, Chinas und anderer Nicht-EU/EFTA-Staatsangehöriger gilt das Lex Koller in voller Strenge. Auch ein Drittstaatsangehöriger mit Wohnsitz in der Schweiz und gültiger Aufenthaltsbewilligung kann eine Hauptwohnung kaufen, für Anlageobjekte und Ferienimmobilien gelten jedoch strenge Einschränkungen.
Welche Unterlagen werden benötigt, und wie läuft die Bewilligung ab?
Erforderliche Unterlagen bei bewilligungspflichtigen Käufen
Wenn Sie unter das Lex Koller fallen (z. B. als EU-Staatsangehöriger ohne Wohnsitz in der Schweiz), ist der Bewilligungsantrag bei der zuständigen kantonalen Behörde (Grundbuchamt — Grundbuchamt, oder Bewilligungsbehörde) einzureichen. In der Regel werden folgende Unterlagen benötigt:
Ausgefülltes Antragsformular (je nach Kanton in unterschiedlichem Format)
Der Vorvertrag zum Immobilienkauf (Kaufvorvertrag)
Identitätsnachweis des Käufers (Reisepass, Aufenthaltsbewilligung)
Unterlagen zum Nachweis der finanziellen Situation des Käufers (Bankbestätigung, Einkommensnachweis)
Nachweis über die vorgesehene Nutzung der Immobilie (Hauptwohnsitz, Ferienimmobilie, gewerbliche Nutzung)
Erklärung, dass die Immobilie nicht vermietet wird (bei Ferienimmobilien)
Ablauf des Bewilligungsverfahrens
Der Bewilligungsantrag wird in der Regel vom Notar (Notar) oder vom Anwalt vor der Unterzeichnung des Kaufvertrags eingereicht. Die Dauer des Verfahrens variiert je nach Kanton: 4–12 Wochen. Über die Erteilung oder Verweigerung der Bewilligung wird der Antragsteller schriftlich informiert.
Wird die Bewilligung verweigert, besteht die Möglichkeit einer Beschwerde beim kantonalen Verwaltungsgericht und letztinstanzlich beim Bundesgericht (Bundesgericht).
Immobilienkauf Schritt für Schritt — vom ersten Angebot bis zur Eigentumsanmeldung
Der Ablauf eines Immobilienkaufs in der Schweiz besteht in der Regel aus den folgenden Schritten:
Immobiliensuche und Marktüberblick. Die wichtigsten Immobilienportale: Homegate, ImmoScout24, Comparis. Immobilienmakler (Engaging an estate agentis not mandatory, but it is recommended in complex cases.
Clarifying financing in advance. Swiss banks typically finance up to 80% of the purchase price with a mortgage (Hypothek). The remaining 20% must be covered from your own funds. It is advisable to obtain bank pre-approval (Finanzierungsbestätigung) before making an offer.
Submitting an offer and preliminary agreement. The preliminary agreement with the seller (Kaufvorvertrag or Reservationsvertrag) sets out the price and the terms. This is not yet final — the legally binding document is the final contract signed before a notary (öffentlich beurkundeter Kaufvertrag).
Submitting the permit application (if required, see above).
*Notarisation (öffentliche Beurkundung).* In Switzerland, the property purchase agreement must be signed before a notary. The notary arrangement and fees vary by canton — in some cantons (e.g. Zürich), the state performs notarial duties, while in others a private notary acts.
*Registration of ownership in the land register (Grundbuch).* After notarisation, the land registry office enters the new owner. This step makes the sale legally final.
Handover and key transfer. As agreed by the parties, typically after the land register entry.
The full process from the first offer to key handover takes 2–6 months and may take longer in cases requiring a permit.
What does it really cost? Purchase price, taxes and ancillary costs
In addition to the purchase price, you need to account for a number of ancillary costs. Their amount varies significantly from canton to canton, but the table below provides a general guide:
Cost item | Approximate amount | Note |
|---|---|---|
Real estate transfer tax (Handänderungssteuer) | 0.5–3.3% | Varies by canton; in some cantons (e.g. Zürich) there is none |
Land registry entry fee (Grundbuchgebühr) | 0.1–0.5% | |
Notary fee (Notariatsgebühr) | 0.1–0.5% | |
Mortgage registration fee | 0.1–0.3% | If a mortgage is involved |
Real estate agent commission | 2–3% + VAT | If purchased through an agent |
Legal advice | Individual | Recommended in complex cases |
Total (without agent) | ~1–3% | |
Total (with agent) | ~3–5% |
For example, Zürich canton does not levy a real estate transfer tax, while in the cantons of Fribourg and Valais it can reach as much as 3%.
Important:Prices are stated in CHF. To estimate the approximate HUF equivalent, you can use an exchange rate of 1 CHF ≈ 430–440 HUF at the beginning of 2025, but this changes — always check the current exchange rate.
Financing and mortgage loans — options for foreign buyers
Swiss banks also grant mortgage loans (Hypothek) to foreign buyers, but the conditions are stricter than for Swiss citizens.
Basic rules:
The bank typically finances up to 80% of the purchase price (the first mortgage / erste Hypothek covers up to 65%, and the second / zweite Hypothek applies to the portion between 65% and 80%).
The minimum equity contribution is therefore 20%, of which at least half (10%) may not come from the second pillar (berufliche Vorsorge / BVG) — only from liquid savings, securities, or a gift.
The bank reviews income: the annual mortgage cost (interest + amortization + maintenance) may not exceed 33% of gross annual income (the so-called Tragbarkeitsregel — affordability rule). Banks typically calculate this using a 5% imputed interest rate, not the current market rate.
The specific situation of foreign buyers:
For buyers who do not live in Switzerland, banks usually apply stricter conditions: they require higher equity (30–40%) and more thorough proof of income.
Some Swiss banks (e.g. UBS, UBS as successor to Credit Suisse, Raiffeisen, Zürcher Kantonalbank) also grant mortgages to buyers with a foreign residence, but the product range is more limited.
Taking out a mortgage from a Hungarian bank for Swiss real estate is not customary and is practically unavailable.
Taxation — at federal, cantonal and municipal level
Taxes related to real estate in Switzerland arise at three levels:
At purchase
*Real estate transfer tax (Handänderungssteuer):* varies by canton (see table above). In Zürich there is none, in Bern it is about 1.8%, and in Valais about 3.3%.
During ownership
*Property value tax (Liegenschaftssteuer):* in some cantons, around 0.05–0.3% of the property's market value per year. Not every canton applies it.
*Imputed rental value (Eigenmietwert):* under Switzerland's specific system, owners must declare a notional rental value for their own home as income and pay tax on it. The amount varies by canton and is typically around 60–70% of the property's market rental value. In return, mortgage interest and maintenance costs can be deducted from the tax base. This system is politically controversial — Parliament has debated abolishing it for years, but it is still in force in 2025.
*Wealth tax (Vermögenssteuer): the property's tax value (Steuerwert*, typically 70–80% of the market price) is included in the wealth tax base.
At the time of sale
*Real estate capital gains tax (Grundstückgewinnsteuer):* this is levied on the difference between the sale price and the purchase price. The rate decreases with the holding period — the longer the property has been owned, the lower the tax. In some cantons, there is already a significant reduction after 5 years, and after 20+ years the tax burden is minimal.
Hungarian-Swiss double taxation agreement: under the agreement concluded between Hungary and Switzerland in 1981 and subsequently amended, income and capital gains from real estate are taxable in the country where the property is located. So for Swiss property, Switzerland taxes it, and the same amount does not have to be declared again in Hungary — but there may still be an information obligation towards the Hungarian tax authority.
Typical mistakes and advice for a successful purchase
The following mistakes are the most common among foreign buyers:
Ignoring the permit requirement. A contract concluded without the required permit is void. Always clarify in advance whether your situation requires a permit.
Underestimating ancillary costs. The 3–5% on top of the purchase price is a significant amount — for a CHF 800,000 property, that means CHF 24,000–40,000 in additional costs.
Misunderstanding the affordability rule. Many people calculate with the current low interest rate, but the bank assesses affordability using a 5% notional interest rate. This excludes many applicants from financing who otherwise consider themselves able to pay.
Ignoring cantonal differences. What applies in Zürich may not necessarily apply in Valais. The rules of the relevant canton must always be examined.
The surprise of imputed rental value. Many new owners do not expect that they must also pay tax on their own home based on a notional rental income.
Decision-making under pressure. The Swiss property market — especially around Zürich, Genève and Zug — is extremely competitive. Sellers sometimes push for a quick decision. However, signing before the notary creates an irrevocable obligation.
Sources
Swiss federal portal: https://www.ch.ch/en/
Housing and renting in Switzerland: https://www.ch.ch/en/housing/rent/
Federal Office of Justice and Police (EJPD/FDJP) — Lex Koller: https://www.bj.admin.ch (on the Lex Koller / BewG topic)
Federal Tax Administration (ESTV/AFC): https://www.estv.admin.ch
Federal Statistical Office (BFS): https://www.bfs.admin.ch
Swiss Land Registry Office (Grundbuchamt): available at cantonal level, search using the canton name + “Grundbuchamt”
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In Brief
In Switzerland, property purchases by foreigners are regulated by the Lex Koller: a Hungarian citizen living in Switzerland with a valid residence permit can generally buy in the same way as a Swiss national, but a Hungarian buyer who does not live in Switzerland may be subject to a permit requirement. The full process varies by canton, requires notarisation and land register entry, and in addition to the purchase price you should typically expect 1–5% in ancillary costs as well as strict bank financing conditions.
Key Takeaways
- It must be checked whether the buyer falls under the scope of the Lex Koller, because a contract concluded without the required permit may be void.
- A Hungarian citizen living in Switzerland with a valid B, C or L permit can generally buy a primary residence without a permit.
- Before buying, it is advisable to clarify financing: the bank typically covers at most 80% of the purchase price, and the buyer must provide at least 20% equity.
- The bank assesses affordability using a 5% imputed interest rate, and the annual mortgage burden may not exceed 33% of gross annual income.
- In addition to the purchase price, ancillary costs of generally 1–5% should be expected depending on the canton, including taxes, fees and, in some cases, broker commission.
- After signing before the notary, entry in the land register makes the acquisition of ownership final, which is why a rushed decision can be particularly risky.
Frequently Asked Questions
Who can buy property in Switzerland without a permit?
A Hungarian citizen with residence in Switzerland and a valid residence permit can generally buy in the same way as a Swiss national. With a C permit, buying is unrestricted; with a B permit, a primary residence can be purchased without a permit; and with an L permit, the options are limited. A buyer who does not live in Switzerland, however, will usually fall under the Lex Koller.
Is a permit required for a Swiss holiday home bought from Hungary?
Yes, if the buyer does not live in Switzerland, prior official authorisation is required under the Lex Koller. For holiday properties, a permit can only be issued within a limited quota. The authorisation process follows canton-specific practice.
How long does a property purchase in Switzerland take?
From the first offer to handover of the keys, the process typically takes 2–6 months. In cases requiring a permit, it can take longer, because the authorisation procedure may take 4–12 weeks depending on the canton. Finalisation also requires notarisation and entry in the land register.
How much equity is needed to buy property in Switzerland?
Swiss banks typically finance up to 80% of the purchase price with a mortgage. This means that at least 20% equity is required. At least half of this cannot come from the second pillar, but must come from liquid savings, securities or a gift.
What additional costs should be expected on top of the purchase price?
Ancillary costs vary by canton, but overall they are usually around 1–3% without a broker and 3–5% with a broker. These may include property transfer tax, land register fees, notary fees, mortgage registration fees and broker commission. In Zürich, for example, there is no property transfer tax, while in other cantons it can be significant.
How is ownership of Swiss property taxed?
During ownership, property value tax, wealth tax and taxation on the so-called imputed rental value may arise. The latter means that even for an owner-occupied home, a notional rental income must be declared, while mortgage interest and maintenance costs are deductible. On sale, capital gains tax applies to the difference between the sale price and the purchase price.
Can a mortgage for Swiss property be taken out from a Hungarian bank?
According to the article, this is not customary and is practically not available. Swiss banks, however, may also grant mortgages to foreign buyers, albeit under stricter conditions. For buyers who do not live in Switzerland, a higher down payment and more detailed proof of income are often required.
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