Buying property in Switzerland. The procedure for purchasing real estate in Switzerland. The documents necessary for the procedure of purchase.
BUYING A HOUSE FOR NON-HOLIDAY
According to the law «Lex Koller», when buying a home for the rest, are taken into account the following factors:
- Resolution buy the appropriate authorities
- Only within the boundaries of the tourism community (village)
- As part of the annual quota for each canton / community (village)
- Only for private use.
- The owner can take property for rent only occasional periods, impermanent.
- Living area shall not exceed 200 square meters. m. (sometimes it can be approved by the area up to 250 sq. m.)
- Land plot area shall not exceed 1000 square meters. m. (sometimes it can be approved by the area of 1500 sq. m.)
In the whole of Switzerland in the year it issued only 1,500 permits for the purchase of holiday homes by non-residents.
The Swiss government sets the quota taking into account the regional tourist sites, new real estate objects and the quantitative ratio of the land. Valais, Grisons, Bern, Ticino and Vaud receive from 140 to 330 permits for each other cantons - less than 100.
If the buyer / seller acquired the property as a foreigner by its quota system, a new permit is not required, and the purchase will not be included in the quota set for this year.
The tax effect of the purchase
The tax effect of the purchase and sale of residential real estate
Tax consequences of owning a holiday home
In Switzerland, communal or cantonal authorities make an annual assessment of each property. This is done in order to set a conditional rental value of the property to determine the tax rate and the tax value for wealth tax. Ownership of real estate in Switzerland entails personal responsibility of the owner in respect of income tax and wealth tax, associated with the object. Typically, homes are taxed, based on the notional value of rental property
and the cost of the tax rate applicable to income and wealth around the world. In order to simplify the tax authorities may agree to the application of the maximum tax rate without the declaration of global income and wealth. Tax rates are the same as that of the Swiss tax residents. Some cantons have set a one-time tax on vacation homes. As a rule, interest payments on mortgages and maintenance costs and maintenance are not deductible.
Tax consequences of sale
In some cantons sale is permitted only after the minimum holding period (usually 5 years). Capital gains are taxed at the cantonal, and in some cantons also at the community levels. The tax rate is progressive and depends on the amount of realized capital holding period, ranging between 10% -50%.
Inheritance vacation homes
Since approval for the acquisition of real estate by non-residents is given real estate, not the person, according to the law «Lex Koller» obtain a new authorization is required for the gift or inheritance, if the recipient is not the owner of another house for your holiday in Switzerland.
The legacy of the deceased, who was a resident abroad, mostly not subject to Swiss law of succession. However, in order to change the ownership, it can be applied Swiss law on real estate. In addition, real estate in Switzerland is subject to cantonal tax on inheritance (in each case individually, please use the advice of experts).
- Chateau d'Eau
- Les Diablerets
- Montreux / Vevey
- Flims / Laax
- St. Moritz
Italian part *
* In this region, the purchase by non-residents. Please ask for information on interesting destinations.
Restrictions on building new houses for the holidays with January 1, 2013
In March 2012, a referendum of the Swiss population (the so-called initiative of Franz Weber) set a limit on the construction of new homes for the holidays. In tourist areas it should not exceed 20% of the plots for development in the community.
Currently more than 500 tourist communities exceed this level. As a result, stopped issuing permits for new construction except that is for permanent residents. Potentially, the next 5 years it may lead to an increase in the cost of vacation homes because of their lack of in the future.
Commercial REAL ESTATE
Commercial real estate by foreigners is not subject to restrictions, so the purchase does not require a residence permit or authorization. The property can be used as a business owner needs, as well as for rent. Commercial real estate can be acquired solely for investment purposes in. The costs and procedures associated with the purchase of commercial real estate and residential real estate are quite similar. There may be (and sometimes is recommended in the tax, legal and inheritance purposes) investments through the Swiss or foreign companies, trusts and fund structures.
Financing and structuring transactions to purchase
Assets or loans
One possible way to finance the deal - a cash purchase. The Swiss banks usually grant mortgages of up to 80% of the value of the property according to the results of their assessment. For the purchase of luxury housing and holiday homes, as a rule, provided mortgage loans of up to 60%. Switzerland has one of the lowest in Europe, levels of interest rates.
Buying through struktury- Swiss company, foreign company or trust / fund
Buying a holiday home is only allowed directly sobstvenniku- beneficiary. The couple can only buy a house for a holiday in Switzerland. Buying a home for the rest allowed to children older than 18 years at their own expense.
Residential for primary residence is usually purchased directly by persons with a residence permit
"B" and "C". In certain cases, the legal owner of the property can be a Swiss or foreign legal entity, but the main beneficial owner shall be the holder of a residence permit "B" or "C". The purchase through a trust or a fund, provided that the beneficiary sobstvennik- structure has the right to own real estate in Switzerland. Commercial and residential property investment often purchased using Swiss or foreign legal entity.
The choice of the structure and its jurisdiction depends mainly on the residence of the beneficial owner, the financing and timing of the investment.
The procedure for purchasing real estate in Switzerland
Stages of the purchase
In the first stage, the buyer must examine whether the acquired property be considered a vacation home or primary residence only, which requires a residence permit.
To purchase a holiday home should apply to the purchase of the relevant competent
authorities. Depending on whether the remaining quota for the current year permit may be issued in a few months or maybe next year, if the quota for the current year is exhausted.
Buying a property for a primary residence may be made only on receipt of a residence permit.
If the application is made for the purchase of a holiday home or an application for a residence permit in the first stage of the buying process, you can sign the letter o intent or a preliminary agreement to purchase between the seller and the buyer. As a rule, this type of contract implies a time limit, and the seller is paid a security deposit to reserve.
- Resolution canton to purchase vacation homes
- A residence permit for a primary residence
- Confirmation of the Swiss banks on the financing of the purchase
- Passport of beneficial owner
- The power of attorney giving the right to deduct from the notary the purchase price and the costs of transaction taxes
Depending on the desired applications, the purchase can be completed within 2-6 months. Ownership is transferred only after the registration of the new owner in the land registry.