Switzerland Property Ownership

All rights in immovable property must be recorded. Good faith reliance on the land register is assumed and protected.

Switzerland Transaction Information

Most real estate transactions are leases because sales are rare. There is no formal sharing of transaction information or an MLS.

Switzerland Trade Associations

Union Suisse des Professionnels de l’Immobilier (USPI)
Case postale 1215
Lausanne
CH-1001
Switzerland

Phone : +41 21 7963300
Fax : +41 21 7963311
e-mail : uspi@centrepatronal.ch
Web : www.uspi.ch

USPI, the Swiss Property Association was established in 1943 and is a not-for-profit association which brings together the six French-speaking cantonal associations of property brokers and managers in Switzerland. USPI’s mission is to protect the interests of Swiss French-speaking property professionals.

Schweizerischer Verband der Immobilienwirtschaft(SVIT)
SVIT Schweiz
Eugen Huber-Strasse 19 a
Zürich
CH-8048
Switzerland

Phone : +41 1 4347888
Fax : +41 1 4347899
e-mail : info@svit.ch
Web : www.svit.ch

The Swiss Association of Real Estate Professionals (SVIT) was founded in 1933 and represents German-speaking real estate professionals throughout the nine regional sections. SVIT is the only professional association which organizes continuing education for the real estate profession and it offers further training and information to real estate professionals. SVIT members agree to abide by a code of professional ethics. SVIT is a permanent member of the Swiss Commission for Real Estate (CDQI), an umbrella organization for all Swiss real estate bodies.

Switzerland Land Rights

Swiss law distinguishes between real and personal property, (Grundstuecke and immeubles), land and improvements to land are considered real property. Foreigners must acquire a license to purchase real property in Switzerland unless they have lived in Switzerland for 10 years, in most cases. After a 1997 amendment, foreigners can now acquire commercial property including office buildings, factories, hotels, and shopping centers for investment purposes (International Law Update October, 1997). The government retains certain rights in real property such as the right to levy real property taxes, control the use of private property through zoning and escheat.

Landlord/tenant laws in Switzerland favor the position of the tenant. Tenants may, in certain instances, apply for a reduction of rent almost immediately after obtaining possession. It is difficult for a landlord to terminate a lease in Switzerland.

Dower and curtsey are unknown in Swiss law. In most instances, property brought into marriage and acquired during marriage is jointly owned by spouses.

Switzerland Forms of Ownership

Real property may be owned in severalty or concurrence. Concurrent forms of ownership include corporations, limited liability companies, cooperatives and joint ventures. Partnerships may exist to carry out a business in Switzerland however, partnerships may not hold title to real property.

Switzerland Real Estate Info Summary

Title & Contracts in Switzerland

All conveyances of real property must be recorded in the Land Register. Conveyance after death is possible via a will. Property of a person dying interstate and with no heirs will escheat to canton.

Deeds must be recorded in the Land Register of the canton where the property is situated.

For a contract to be valid, there must be mutual consent and legal capacity. Consideration is not required for a valid contract. Contracts for the sale of real estate must be in writing, however, there are no standardized forms. Notaries are not required for real estate contracts.

Property Taxes:

Property taxes are levied but are low according to U.S. standards.
Real estate transfer taxes are high in Switzerland. These taxes can be up to 4% of the value of the transaction.

Taxes on capital gains resulting from sale of real property may be as high as 60%.

Land Use & Control

Zoning is applied to control the use of private property in Switzerland. Territories are divided into zones as either building or non-building. Details are laid out in cantonal studies and federal law of 1979. Particular areas of protection involve construction bordering lakes, rivers, and sites of special beauty. All construction requires a permit. Strict land use controls in CBD areas keep supply constrained and demand and rents high. Federal law was amended slightly to ease buildings activities in agricultural zones.

Switzerland Mortgages & Financing

Debts on real property may be secured by a mortgage (Grundpfandverschreiburig, or Hypothèque). Mortgages in Switzerland do not have to be for a specific amount, however the maximum amount must be stated. In this way, mortgages can be obtained on debts expected to occur in the future. A mortgage becomes effective upon entry in Land Register. Priority of mortgages is established according to rank designated in Land Register, not according to date of registration. Mortgages are generally assumable with novation, ending the liability of the original debtor.

Swiss banks will typically lend up to 65% of the purchase price over 25 years, or up to 50 years. Effectively a Swiss mortgage is an overdraft secured against the property and it is very flexible. The borrower pays interest every 6 months on the capital amount outstanding and can pay off part of the loan on giving notice. Interest rates are currently around 4.5%. We would be pleased to introduce you to a Swiss bank, we do not charge you a brokerage fee.