Purchase of property by foreigners
Purchase of property by foreigners
"I'm not Swiss, but I work in Geneva for an international organisation that has given me a legitimation card. I'd like to buy a house and I've heard that there are special rules; is that true?"
Peter, Geneva
There are special regulations governing the purchase of real estate by holders of a legitimation card. The Federal Act on the Acquisition of Real Estate by Foreigners (LFAIE) stipulates that the purchase of real estate by a foreigner is subject to authorisation. However, under certain conditions, persons in the service of international organisations who hold a legitimation card issued by the Department of Foreign Affairs are not subject to the LFAIE and may freely acquire property.
So if you are a national of an EU or EFTA member state and live in Switzerland, you can buy a property without prior authorisation and without being subject to any restrictions. Naturally, buyers with or without diplomatic status are required to pay all taxes and duties relating to property in Switzerland.
On the other hand, if you are not an EU national or if you have not lived in Switzerland for 10 years or 5 years (depending on your nationality), you can still buy a property without prior authorisation, but with important restrictions: the property must be used as the buyer's main residence, the surface area of the property must not exceed 3,000m2 and the purchase must be made in your own name.
Finally, members of international organisations who can prove that they have lived in Switzerland for an uninterrupted period of 10 years may acquire property without being subject to prior authorisation and without restrictions. Note that this period is reduced to 5 years for nationals of the United States, Andorra and Monaco.
