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10/11/2009How to rent and buy a house in Switzerland

How to rent and buy a house in Switzerland Information about renting property and obtaining a mortgage in Switzerland.

Finding accommodation in Switzerland is not the easiest of tasks. It is best to start searching before leaving your country.

If you are bringing your family along, it is better for them to join you after you find suitable accommodation. If you are arriving alone, guesthouses, hotels, or staying with friends are options. Many hotels and bed-and-breakfast establishments cater to long-term guests and offer weekly and monthly rates.

While using an estate agent may be expensive, it may be a better option for foreigners than dealing with Swiss owners and government officials who may not speak English. Using a relocation company can be a less costly option.

Why rent (mieten/loyer)?

Over seventy percent of the Swiss population rents. Renting a house or apartment has comparative advantages like favourable tenant rights (landlords are in no position to expel their tenants if payment is on time) and easy cancellation of leases. Leases tend to be made for a period of one year. If a conflict arises between you and your landlord, being a member of your local tenants’ association (Mieterverband, association des locataires) will prove beneficial.


Rent rates in Switzerland are comparable to other European countries. However, you will find variations between the cantons. Rents are higher in cantons like Basel, Geneva and Zurich, due to excess demand. Most landlords will expect a three-month deposit, or Kaution/Caution, which is returned when you move out, in addition to the interest earned over the rental period. Accommodation is generally rented unfurnished, but many apartments will be equipped with a stove, refrigerator and dishwasher. In addition to the basic rent, apartment tenants should expect to pay building maintenance costs and utilities for apartments; house tenants usually pay house maintenance (water pipes, gutter, garden and chimney) and utilities.

Mortgages

Foreign nationals can buy residential property in Switzerland under the following rules:

  • EU/EFTA nationals can buy property with a resident permit B if they will live in this property themselves.
  • Other countries’ nationals can only buy property if they have a Swiss permit C.
  • This does not apply to commercial real estate.
We recommend you obtain at least three offers from different banks and insurance companies for mortgages, as there is strong competition between various providers.

Switzerland’s mortgage industry is characterised by the following:

  • The highest withholding tax rate in any country
  • Stable interest rates
  • The highest per capita mortgage industry in the world


Foreigners can get between 60-80 percent of the house price. When you buy land, an apartment, or a house, moving duties and a land transfer tax is four percent on average. This amount varies between cantons. The procedure for buying is to make an appointment with a local notary public after arranging your finances. The officer’s job is to ensure the legality of the transaction. The money is paid to the notary and it is passed on only after change of ownership is properly registered.  

Mortgages in Switzerland are collateralised with the land upon which the housing is located. The owner has a right to credit depending on the value of the land. The lender has a right to use the land if the borrower is unable to meet his or her mortgage payments. As there is high per capita mortgage embeddedness in Switzerland, the mortgage rate is the leading interest rate indicator in the country. Registration of the deed with the Land registry office is costly, running between 1.0 percent and 1.5 percent.

Main real estate agencies:
Privera - www.privera.ch
Wincasa - www.wincasa.ch (In French/German/Italian only)
SPG - www.spg.ch (In French only)
Moser Vernet & CIE - www.moservernet.ch
Naef - www.naef.ch (In French only)

Main home finding sites:
www.homegate.ch
www.immostreet.ch
www.houseland.ch
www.immoscout24.ch


This article was updated in 2009 by Sara Poumerol of Active Relocation and Verena Mumford of REMAX Real Estate.



3 reactions to this article

florence posted: 2009-12-07 23:54:07

There is also a new webiste for people interested in renting or buying a flat or a shop it is a place where tenants freely put their insertions.

http://www.fond-de-commerce.ch

Aldo Lanchi posted: 2011-04-14 18:38:37

I know a family company in Lausanne and they rent studios and apartments in Lausanne for raisonable price. They offer other services as to find the suitable apartment in Lausanne. The work in Lausanne region only.
their web site:
www.swissflats.ch

S.H. posted: 2011-06-01 13:59:37

There is no such word as "embeddedness". What is that suppose to mean.
Also what do these sentances mean........
"The highest withholding tax rate in any country"
"The highest per capita mortgage industry in the world"
"Foreigners can get between 60-80 percent of the house price."
We are relocating soon could someone please translate this for me?

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3 reactions to this article

florence posted: 2009-12-07 23:54:07

There is also a new webiste for people interested in renting or buying a flat or a shop it is a place where tenants freely put their insertions.

http://www.fond-de-commerce.ch

Aldo Lanchi posted: 2011-04-14 18:38:37

I know a family company in Lausanne and they rent studios and apartments in Lausanne for raisonable price. They offer other services as to find the suitable apartment in Lausanne. The work in Lausanne region only.
their web site:
www.swissflats.ch

S.H. posted: 2011-06-01 13:59:37

There is no such word as "embeddedness". What is that suppose to mean.
Also what do these sentances mean........
"The highest withholding tax rate in any country"
"The highest per capita mortgage industry in the world"
"Foreigners can get between 60-80 percent of the house price."
We are relocating soon could someone please translate this for me?

Add a comment
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