Switzerland has a reputation as a country of tenants, and it is true that many residents rent for life. But buying property in Switzerland is possible for newcomers, and for EU citizens the rules are friendlier than you might fear. The obstacle is rarely the law. It is the deposit, the financing rules and the price. This article covers the Lex Koller, the money and the sequence of a purchase, using federal texts and the cantonal pages for Geneva, Vaud and Zurich as examples.
Can a foreigner buy property in Switzerland?
The relevant law is the Federal Act on the acquisition of real estate by persons abroad, known as the Lex Koller. What matters is not your passport alone, but whether you count as a "person abroad" within the meaning of the act. For EU and EFTA citizens:
- Domiciled in Switzerland (holding a B, C or L permit, and actually living there): you are not a person abroad, and you buy freely, as a Swiss person does.
- Not domiciled in Switzerland: you are subject to the act. A holiday home or second home needs a cantonal authorisation, within quotas. You must get it before the purchase.
- Your main residence at your place of domicile is exempt from authorisation in any case.
Cross-border commuters who are EU or EFTA nationals and work in Switzerland can, according to the federal guidance on ch.ch, acquire property in the region of their workplace without authorisation. Check your canton, because the cantonal authority applies the law.
Two further notes. First, British citizens are treated like Europeans only if they have rights acquired under the 2019 agreement; others fall under the regime for third-country nationals. Second, in April 2026 the Federal Council opened a consultation on tightening the Lex Koller for third-country nationals who buy a main residence. It is a draft, not current law, but check the version in force on Fedlex just before you sign anything.
Which situations does the Lex Koller cover?
A quick reading grid for the most common cases:
| Your situation | What the rules say |
|---|---|
| EU or EFTA citizen, domiciled in Switzerland | Not a person abroad: free purchase |
| EU or EFTA citizen, living abroad, wants a holiday home | Cantonal authorisation, within quotas, before purchase |
| EU or EFTA cross-border commuter (G permit) | May acquire in the region of the workplace without authorisation, according to ch.ch guidance |
| British citizen with acquired rights (2019 agreement) | Treated like EU citizens |
| British citizen without acquired rights | Third-country regime: you need the right to settle in Switzerland |
If you want to buy a house in Switzerland as a foreigner and your case sits between two lines, ask the cantonal authority before you make an offer. Geneva, for instance, publishes a page on the acquisition of real estate by persons abroad, with the department in charge and the forms.
What does buying property in Switzerland cost?
Budget for the price, the deposit, the taxes and fees. The mortgage rules decide how much of this you can finance. The reference rate, which reflects the average mortgage rate, was 1.25% in 2026, but your offer depends on your bank.
What are the Swiss mortgage requirements?
Three rules shape every offer. First, own funds. According to the guidelines of the Swiss Bankers Association recognised by FINMA, you need at least 10% own funds on the lending value of the property, and these funds must not come from your second pillar. If the price exceeds the bank's lending value, you must pay the difference entirely in own funds outside the second pillar. Own funds include advances on inheritance, gifts, loans assigned to the bank, pledged assets or securities, pillar 3a, the surrender value of an insurance policy and, for an owner-occupied home, a loan from close family if the lender commits in writing to be repaid only with the bank's agreement.
Second, amortisation. The debt must come down to two thirds of the lending value within 15 years, in a linear way, starting 12 months after payout at the latest. Indirect amortisation through pillar 3a or life insurance is possible.
Third, affordability. Neither the law nor the guidelines fix the test: each bank uses its own theoretical interest rate and maximum share of income. Ask several banks before you look at flats. See bank account in Switzerland for how to approach them.
Home buying mixes tax, pension and banking rules that interact: a pension fund withdrawal changes your pension and your tax, a gift for the deposit has its own conditions. Moovy can help you prepare questions for your bank and your notary, but a mortgage broker, a notary or a tax adviser should check your own numbers.
Can you use your second pillar to buy?
Yes, within limits. You may withdraw funds for a home you will occupy yourself, up to three years before the retirement age. Up to age 50, you can use all your vested benefits. After 50, you can use at most the amount you had at 50 or half of your current balance. If you are married, your spouse must agree in writing.
The price is paid later. A withdrawal reduces your future pension benefits, and it is taxed separately at a reduced rate: for the federal tax, one fifth of the ordinary scale, with a cantonal tax on top that varies between cantons. Do not use it without running the numbers.
What are the transfer duties and fees?
They are cantonal. The Federal Tax Administration's documentation (legislation as at 1 January 2022, the latest published) shows the range:
- Geneva: standard rate of 3% of the price, plus cantonal surcharges; for a main residence below CHF 1,258,454, the first CHF 18,877 are not taxed.
- Vaud: 2.2% for the canton, plus at most 1.1% for the commune.
- Zurich: no transfer tax, only notary and land register fees.
Your notary gives you the exact and updated figures. In Switzerland the sale deed is signed before a notary and the purchase is entered in the land register, so the notary is part of the cost, and the cantonal notary and register fees come on top.
Is it worth buying property in Switzerland at all?
That is a personal calculation, not a legal one, but a few elements are worth putting side by side. Owning means a deposit of at least 10% in own funds outside your pension, an obligation to amortise, interest that follows the market, maintenance and a transfer duty that depends on the canton. Renting means a deposit capped at three months and flexibility, but a market where flats are scarce in several cantons. If you plan to stay at least several years and have stable income, ask a bank to run both scenarios with your real numbers. If your stay is uncertain, a rented home is usually the safer first step.
How does a purchase work, step by step?
- Check your status under the Lex Koller: domiciled EU or EFTA citizens buy freely.
- Sound out two or three banks on your borrowing capacity and own funds. Ask your pension fund how much you can withdraw.
- Find the property and make an offer. The notary then drafts the deed.
- Sign before the notary and have the purchase registered.
- Insure and move in, and tell your tax office, since the property is part of your wealth for the cantonal wealth tax.
What mistakes should you avoid?
- Buying a second home before you are domiciled without checking the Lex Koller. The authorisation must be obtained before purchase.
- Counting on the second pillar for the 10%. The 10% minimum must come from elsewhere.
- Draining your pension fund without understanding the effect on your pension and the tax.
- Skipping the notary's cost estimate. Duties vary a lot between cantons.
- Forgetting that rent is the alternative. Read renting in Switzerland to compare.