What are the different types of Swiss property?

Which type of property can foreigners buy in Switzerland?

Foreigners may only buy residential properties in Switzerland which are authorised for sale to foreigners. Swiss nationals and EU citizens who are resident in Switzerland may buy any property anywhere in Switzerland.

We have four different types of property for sale on our web site. These are first homes, second homes, tourist residences (“flexible rental obligation”) and hotel serviced apartments. Each property’s status (e.g. first home, second home etc.) is permanent and remains with the property even after it’s sold. So, for example a “second home” which is authorised for foreigners, will always be available for foreigners as a second home.

First home / Primary residence:

Some resorts will require a developer to build some first home apartments as a condition of planning permission to create accommodation for locals. These are only available for purchase by persons who are living full time in the resort and paying their taxes there.

It is not possible to change a “first home” property to “second home” status in the future. As these properties are not available to foreigners or even to Swiss living in other cities, we do not have many of these on our web site apart from a chalet in La Tzoumaz and new apartment in Saas Fee.

Second homes:

Almost all the resale properties on our site have “second home” status. This means the owner may use them without any restrictions as a holiday home. They may rent it out or keep it for their own exclusive use and leave it empty when they are not using it. Some second homes are authorised for sale to foreigners, others are only available for Swiss or foreigners who are resident in Switzerland.

Which second homes are available to foreigners?

First, it depends on where it is located. Each canton has an allocation of foreigner permits and they give these to the tourist resorts which ask for them. Only ski resorts are considered as “touristic”, so properties in the cities such as Geneva or Zurich are never authorised for sale to foreigners.

Most of the resorts in Eastern Switzerland (Lenzerheide, Laax, Flims) ask for only a few permits, so it is very rare to find a property for sale to foreigners. Some resorts such as Zermatt never ask for foreigner permits, so there are no second home properties available for foreigners and only ones Swiss can buy. Properties in the centre of the resort may be authorised for sale to foreigners, but the villages nearby are not considered as touristic. This chalet in Verbier Village is therefore only available for Swiss.

Some resorts such as Wengen authorise only 50% of the apartments in a building to be sold to foreigners and the remainder, like this top floor apartment, are for Swiss only.

Second, it depends on the size of the property. Some chalets may be too big to be allocated a foreigner permit even though they are in a tourist area. This four-bedroom chalet is spread over four floors and gym, spa room and a wine cellar.

The resorts which link into the Verbier ski area are considered as “touristic” and most of the chalets including this ski in, ski out chalet are on plots less than the 1,000m2 maximum. Most resorts in Caton Valais are open for foreigners so these properties are authorised for sale to foreigners. You can therefore buy impressive chalets in highly rated resorts such as Saas Fee and Crans-Montana.

Andermatt has a special exemption from many of the rules so foreigners can buy freely, even in brand new developments.

Tourist Residences:

No building permits are given now for the construction of new second home properties since the Weber law of 2012. The exception is for a new property which is classed as a “touristic residence”. The idea is that properties should not be left empty, so owners are obliged to rent their apartment out when they are not using it. They may only use it personally for 3 weeks during the peak winter season and 3 weeks during the peak summer season. If it is not rented in other periods such as January or June they are free to use it then as much as they like.

We have several tourist residences, and they are all available to foreigners although they are also popular with Swiss buyers as investment properties.

The rental arrangement and management service takes the stress out of arranging these services yourself and the amount of personal use is more than enough for most owners. Some examples of successful touristic residences include this ski in, ski out development in Les Masses, the second phase of a new project in Grimentz, some new apartments in the charming resort of St Luc and the new Peak residences in our favourite resort of Saas Fee.

Hotel Serviced Apartments

How are these different from touristic residences?

These developments are larger and offer hotel like services to both owners and rental guests. One example is the Saastal Village in Saas Fee which consists of 5 new buildings which will be serviced by a new hotel, The Grand.

Services for owners and guests include pick up by electro taxi from the parking, concierge service, “room service” etc. Facilities include restaurant, bar, pools, sauna, steam room, treatment rooms, lounge ski lockers etc.

Both Nordic and The Grand have some units still available if this kind of property appeals to you. These apartments are all sold fully furnished and equipped ready for rental (included in the price). They are “freehold” so you will become the registered owner. Owners will sign an agreement giving the management company the right to rent your apartment for you when you are not using it.

The personal usage is the same - up to 6 weeks of the year in peak seasons and more off-peak. The management company take a higher % of the income than for a touristic residence but the rental rates are higher too. All apartments are available for foreigners and as they are classed as investment properties, you may resell at any time (foreigners buying a second home or touristic residence are usually not permitted to sell within 5 years of purchase).

Some buyers (particularly the Swiss) want the freedom of being able go to their holiday home any weekend at short notice. However, most of us need to plan flights etc in advance, also have a limited holiday allowance so touristic residences suit them.

A lot of our international buyers want to rent their properties out when they are not using them as it more than covers their costs and it is good for the sustainability of the resort and infrastructure. Some buyers are used to staying in good hotels where everything is provided. They want the services they are used to, and they like to relax in a sauna or work out in a gym at the end of the day. Hotel serviced apartments therefore suit their lifestyle and pay their way.

Hopefully this has been a helpful guide to assist in your search, and as the Swiss property experts, we are always here if you ever have any questions or would like some advice.