Can a Hungarian citizen buy property for own use in Switzerland without a permit?

Yes, if you hold a valid Swiss residence permit and use the property as your main residence. According to the article, this is possible without a permit with B and C permits. If these two conditions are not met, an authorisation procedure under Lex Koller may become necessary.

How much equity is needed to buy property in Switzerland?

At least 20% of the purchase price must come from your own funds. Of this, at least 10% must come from “hard” equity, such as savings, inheritance, gifts or a securities portfolio. The remaining part may be supplemented, at most, by an amount withdrawn in advance from the second pillar.

Are income or property collateral from Hungary accepted for a Swiss mortgage?

According to the article, not on their own. Banks usually ask for Swiss income, a Swiss salary statement, a tax return and a copy of the residence permit. Savings held in Hungary may be usable, but the source of the funds must be documented.

Why is prior bank financing approval important?

Because sellers often do not take an offer seriously without it. The bank’s preliminary credit assessment shows how much the buyer is eligible to borrow, making the offer more credible and better founded.

What role does the notary play in a Swiss property purchase?

The notary does more than certify signatures: they actively help draft the contract, verify the land register status and also arrange escrow handling of the purchase price. The final purchase agreement must be signed before the notary. The notary is a neutral party and does not represent only the buyer’s interests.

What additional costs should be expected when buying?

According to the article, notary fees, land register entry fees, in some cases property transfer tax, mortgage registration fees and even broker fees may arise. These amounts vary by canton, so the fee schedule of the relevant canton should be checked before buying.

What ongoing tax burden applies to owning your own apartment in Switzerland?

The owner must declare the imputed rental value, known as Eigenmietwert, as income. In return, mortgage interest and maintenance costs are deductible. In addition, most cantons also levy a property tax.

How can I buy property for my own use in Switzerland?

Basics of the Swiss property market: ownership and regulation

In Switzerland, property ownership (Grundeigentum / propriété foncière) operates within a stable legal framework. Real estate is recorded in the land register (Grundbuch / registre foncier), which is maintained at cantonal level. Transfer of ownership is valid only through a purchase agreement signed before a notary (Notar / notaire) and entered in the land register.

The Swiss property market differs from the Hungarian one in three characteristic ways:

High entry threshold: In the major cities (Zürich, Geneva, Basel, Bern), prices per square metre range from CHF 10 000 to CHF 20 000, and can exceed this in premium locations. Based on 2024–2025 data, Swiss property prices have risen nominally by 30–50% over the past decade.
Low owner-occupancy rate: Only about 36–38% of Swiss households are homeowners (according to data from the Federal Statistical Office, BFS), compared with more than 90% in Hungary. Rental housing is both culturally and financially an accepted alternative.
Strict financing rules: To take out a mortgage (Hypothek / hypothèque), at least 20% equity is required, of which at least 10% must come from “hard” own funds (not from the second pillar).

Rights and restrictions for foreign buyers in Switzerland

What does Lex Koller mean for a Hungarian buyer?

Lex Koller (officially: Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland, BewG) is the federal law regulating real estate purchases by foreign nationals. As a general rule, foreign citizens may buy property in Switzerland only with official authorisation.

However, Hungarian citizens, as EU citizens, benefit from an exception if the following conditions are met:

They hold a valid Swiss residence permit (B permit / Ausländerausweis B, or C permit / Niederlassungsbewilligung C).
The property is used as their primary residence (Hauptwohnsitz / domicile principal) — that is, they actually live there, and do not buy it for investment or holiday purposes.

If any of the conditions are not met — for example, if the property is intended as a holiday home or the buyer does not have a Swiss residence permit — the Lex Koller authorisation procedure is mandatory, and approval is by no means automatic.

With which permit can you buy?

Type of permit	Purchase for own residence	Note
B permit (EU/EFTA)	Yes, without authorisation	Only primary residence is allowed
C permit	Yes, without authorisation	No restrictions on use
L permit (short-term)	No, or only with authorisation	Lex Koller procedure required
No Swiss permit	Only with a permit	Holiday home: generally not permitted

Step-by-step purchase process

1. Finding and reserving the property

Properties are primarily found on online portals (Homegate, ImmoScout24, Comparis) and through real estate agents (Makler / agent immobilier). In Switzerland, the brokerage commission is typically paid by the seller, but this can vary by canton and by agreement.

If you find a suitable property, you can secure it by signing a declaration of intent (Kaufabsichtserklärung) or a reservation agreement (Reservationsvertrag). The reservation deposit is typically 1–2% of the purchase price and may be forfeited if you withdraw.

2. Preliminary financing approval

It is advisable to start the mortgage application before making an offer. The bank’s preliminary financing confirmation (Finanzierungszusage / accord de financement) confirms the amount you are eligible to borrow. Without it, sellers often do not take the offer seriously.

3. Purchase agreement and notary

The final purchase agreement (Kaufvertrag / acte de vente) must be signed before a notary. The notary’s role in Switzerland differs from the Hungarian one: they do not merely certify signatures, but actively participate in drafting the contract, verify the land register status, and also handle the escrow of the purchase price.

The notary’s fee is typically paid by the buyer; the amount varies by canton, but is generally 0.1–0.5% of the purchase price.

4. Land register entry

Ownership becomes final only with the land register entry (Grundbucheintrag / inscription au registre foncier). The registration fee (Grundbuchgebühr) also varies by canton.

5. Handover and key transfer

The handover date is set out in the contract. This is when the actual key transfer takes place, along with meter readings and, where applicable, the signing of an inventory list.

Financing and mortgage: from a Hungarian perspective

How much equity is required?

Under Swiss rules, at least 20% of the purchase price must be covered from own funds. Of this:

At least 10% must come exclusively from “hard” own capital: savings, inheritance, gifts, securities portfolio.
The remaining up to 10% may be covered with an advance withdrawal from the second pillar (berufliche Vorsorge / BVG) — this is called Vorbezug (advance withdrawal).

An advance withdrawal from the second pillar reduces retirement benefits, so it requires careful financial consideration.

How is creditworthiness assessed?

Swiss banks assess creditworthiness not only using the market interest rate, but also a calculation interest rate (typically 4.5–5%). This means the bank examines whether you could still repay the loan if interest rates rose to that level.

The general rule is that all housing costs (mortgage repayments, amortization, maintenance) must not exceed 33% of gross income calculated using the imputed interest rate.

Can you get a mortgage as a Hungarian citizen?

Yes, if you have a valid Swiss residence permit and documented Swiss income. Banks usually ask for Swiss payslips, a tax return, and a copy of your residence permit. Income from Hungary or property collateral there is not enough on its own for a Swiss mortgage.

When it comes to the source of equity, savings accumulated in Switzerland are the simplest option; savings from Hungary can also be used, but the bank will ask for proof of the funds’ origin (under anti-money-laundering rules).

Taxes and charges: costs of buying and owning property

One-off costs incurred when buying

Item	Rate	Note
Notary fee	~0.1–0.5%	Depends on the canton
Land register entry fee	~0.1–0.3%	Depends on the canton
Property transfer tax (Handänderungssteuer)	0–3.3%	Not available in every canton
Mortgage registration fee	~0.1–0.3%	If you buy with a mortgage
Real estate agent fee	2–3% (if paid by the buyer)	Subject to agreement

Important: Zürich and Zug do not levy a property transfer tax. In Genève and Vaud, this is one of the highest cost items. Always check the fee schedule for the relevant canton before buying.

Ongoing ownership taxes

In Switzerland, property owners must declare the imputed rental value (Eigenmietwert / valeur locative) as income. This means that if you live in your own property, the state treats a notional rent as income, which must be reported in the annual income tax return. In return, mortgage interest and maintenance costs are deductible.

The Eigenmietwert system is politically controversial, and there have been several attempts to abolish it, but it is still in force as of early 2026.

In addition, most cantons have a property tax (Liegenschaftssteuer / impôt foncier), which amounts to 0.05–0.3% of the property’s taxable value per year — depending on the canton.

Cantonal and municipal differences: what you need to know

In Switzerland, the rules, fees and taxes for buying property vary by canton and in some cases by municipality. The following aspects may differ:

Property transfer tax: in some cantons there is none (e.g. Zürich, Zug, Schwyz), while in others it is around 1–3% (e.g. Genève, Fribourg, Valais).
Notarial system: in some cantons a public notary (Staatsnotar) handles the process, while in others a private notary may be chosen.
Land registry fees: their amount and calculation method differ from canton to canton.
Local property tax: does not exist in every canton; where it does, the rate also varies.
Residence registration and tax liability: the canton where the property is located determines tax liability, which is especially important if you have income or assets in more than one canton.

Before buying a specific property, it is worth checking the local fees with the tax office of the relevant canton (Steueramt / administration fiscale).

Legal advice and the role of experts in the transaction

When is a lawyer needed?

In Switzerland, the purchase agreement is drafted by the notary, so involving a lawyer is not mandatory — but it is strongly recommended in complex cases. Such situations include:

Shared ownership (e.g. a condominium apartment, where the deed of incorporation also needs to be interpreted).
A land registry encumbrance (mortgage, easement, pre-emption right) on the property.
Buying a property under construction or in need of renovation.
The need for a Lex Koller permit procedure.
Involving foreign financing.

Availability of Hungarian-speaking experts

In Zürich, Bern, Basel and Genève, you can find real estate lawyers and tax advisors who are native Hungarian speakers or also communicate in Hungarian. A list of recommended experts is available in the svajc.com Knowledge Base after registration.

The notary does not represent your interests

It is important to know: the Swiss notary is a neutral party who represents both sides’ interests equally. If you need specific legal protection (e.g. contractual warranties, a right of withdrawal, defective performance), that must be enforced separately with a lawyer.