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Switzerland has restricted the acquisition of real estate by foreigners for decades. In principle, all foreigners who wish to acquire Swiss residential real estate must obtain approval prior to their purchase, which will otherwise be invalid. Such approval is relatively difficult to obtain. These restrictions also mean that tax and estate planning options for foreigners wishing to acquire holiday homes in Switzerland is are very limited.

For foreigners who hold a Swiss residence permit it is however possible to acquire real estate for their own personal use. Also the acquisition and holding of purely commercial real estate by foreigners no longer restricted in Switzerland.

Acquisition of residential real estate by foreigners not resident in Switzerland All foreigners who wish to acquire Swiss residential real estate must obtain approval prior to their purchase, which will otherwise be invalid. Such approval is relatively difficult to obtain. A foreigner may be authorised to purchase a holiday home in a place designated by the respective cantonal authorities as a holiday resort. Every authorisation must be deducted from the annual quota assigned to the cantons by the Federal government for holiday homes and hotel condominium units. The cantons and communities may apply their own restrictions which may be even more stringent. Holiday homes and hotel condominium units may only be acquired by physical persons under their own name, and under no circumstances by a company.

Chateau d'Aigle, Canton of Vaud

Acquisition of residential real estate by foreigners resident in Switzerland

Since 1997 foreigners holding a Swiss residence permit are allowed to purchase a reasonably sized house or apartment for their personal use with no further need to seek prior approval.

Likewise, foreign-controlled Swiss companies which purchase real estate for use as their own offices or production facilities may do so without restrictions. For foreigners wishing to acquire Swiss real estate and subsequently spending considerable time actually living in Switzerland may find that, moving their main place of residence to Switzerland and obtaining a Swiss residence permit is an interesting option to consider.

Acquisition of commercial real estate

There are no more restrictions regarding the acquisition of purely commercial real estate by foreigner or foreign entities. As a result, there are again interesting tax planning possibilities for foreigners and foreign entities wishing to invest in Swiss commercial real estate. Please contact us for further information and advice.

Switzerland - the ultimate place of residence

Switzerland is undoubtedly one of the most attractive countries in the world to live in. An ideal combination of political and economic stability, a clean and safe environment and relatively low tax rates make it the ultimate place of residence. The possibility of lump-sum taxation, extremly low inheritance taxes as well as the high degree of privacy and personal security enjoyed by its inhabitants make Switzerland the residence of choice for many celebrities and wealthy indivduals.

Some of the many advantages of Switzerland include:

	Political, social and economic stability
	Multi-lingual, highly qualified and motivated workforce
	First-class infrastructure, excellent banking facilities
	Very attractive lifestyle and healthy environment
	Efficient and reliable public services
	Possible fiscal incentives for substantial investments
	Favourable taxation system with moderate tax rates

To find out more about the possibilities of residence and business opportunities in Switzerland, contact Henley & Partners. Through our offices in Zurich and Zug, we are best positioned to advise and assist you with all matters regarding Switzerland.

Kirchgasse 22   8001 Zurich
Telephone +41 44 266 22 22   Facsimile +41 44 266 22 23

Poststrasse 6   6300 Zug
Telephone +41 41 729 63 63   Facsimile +41 41 729 63 64

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