Buying Property in Switzerland: A Unique Market
Switzerland has one of the lowest homeownership rates in Europe (around 36%), largely due to high property prices and conservative lending practices. The Swiss real estate market is heavily regulated, particularly for foreign buyers, who face restrictions under the Lex Koller law. Non-Swiss residents generally cannot purchase residential investment property and are limited to primary residences in most cantons. The purchase process involves a notarized deed of sale (acte de vente / Kaufvertrag), and the property is registered in the land register (Registre Foncier / Grundbuch). Acquisition costs are relatively low compared to neighboring countries, typically 3-5% of the purchase price. These include transfer duty (droits de mutation), which varies by canton from 0% (Zurich, Zug) to 3.3%, notary fees (0.1-1%), and land register fees (0.1-0.5%). Note that some cantons like Zurich have no transfer duty at all.