The Ultimate Guide to Investing in Switzerland

Why Switzerland?

Switzerland stands as a beacon of stability, luxury, and opportunity in the heart of Europe. With its world-renowned quality of life, robust economy, and secure legal frameworks, it’s no wonder that discerning investors from around the globe set their sights on Swiss real estate. Whether you’re seeking a primary residence, a vacation retreat in the Alps, or a strategic asset for wealth preservation, Switzerland offers a compelling proposition for international buyers.

Key Swiss Property Laws Every Investor Must Know

The LFAIE (Lex Koller) Law

The Federal Law on the Acquisition of Real Estate by Persons Abroad (LFAIE), also known as Lex Koller, governs how foreigners can buy property in Switzerland. Its primary goal is to prevent speculative investment and protect the local housing market. Here’s what you need to know:

• Applies Nationwide: The law is enforced across all Swiss cantons, but local rules may vary. Always consult Luxe Living International for region-specific advice.

• What’s Covered: The LFAIE mainly targets residential properties and buildable land.

• Preliminary Authorizations: Foreign buyers must obtain authorization before any transaction. Luxe Living International can guide you through this process seamlessly.

The Lex Weber Law

This law restricts the construction of secondary residences to 20% per municipality, preserving the character and environment of tourist regions. Some cantons also impose quotas on foreign purchases to maintain a balanced real estate market.

Who Can Buy What?

The rules differ based on your residency status and nationality:

Buyer Type	Primary Residence	Secondary Residence	Key Restrictions
Swiss Citizens	Yes	Yes	Lex Weber applies (20% rule)
Permit C Holders (Permanent)	Yes	Yes (with some limits)	Similar rights as Swiss citizens; Lex Weber applies
Permit B Holders (Temporary)	Yes (with limits)	Yes (EU/EFTA only, limits)	Non-EU/EFTA: Only for primary residence, land up to 3,000m²
Non-Residents	No	Yes (in select areas)	One property per person, max 200m² living area, 1,000m² land, quotas

How to Obtain a Swiss Residence Permit (Permit B)

If you’re not a Swiss citizen, securing a residence permit is crucial for property acquisition:

Permit B Essentials

• Validity: 1 year for non-EU/EFTA nationals, 5 years for EU/EFTA citizens.

Requirements:

• EU/EFTA Citizens: Proof of employment or sufficient financial resources, Swiss health insurance.

• Non-EU/EFTA Citizens: More complex—requires exceptional qualifications or a Swiss company sponsor, proof of funds, and health insurance.

• Residency: Must reside in Switzerland for at least six months per year to maintain the permit.

Lump-Sum Taxation

High-net-worth individuals can benefit from lump-sum taxation, where taxes are based on annual expenditure rather than income. This regime is negotiated with cantonal authorities and is not available in all cantons. Permit B holders under this regime must reside in Switzerland and not engage in gainful employment.

Why Choose Luxe Living International?

Unmatched Market Expertise

With years of experience in the Swiss luxury real estate market, Luxe Living International’s brokers provide deep insights into local trends, legal nuances, and the most exclusive opportunities.

Extensive Professional Network

Our relationships with top lawyers, architects, notaries, and financial experts ensure a smooth, secure, and efficient transaction process.

Personalized, End-to-End Service

From the first consultation to the final signature, Luxe Living International offers bespoke service, handling every detail so you can invest with confidence and peace of mind.

The Luxe Living International Advantage

• Access to the Most Exclusive Properties: From Lake Geneva to the Alpine peaks, discover properties that define Swiss luxury.

• Comprehensive Legal Guidance: Navigate LFAIE and Lex Weber with ease.

• Strategic Tax Planning: Optimize your investment with expert advice on lump-sum taxation and residency options.

• Seamless Relocation Support: From permits to settling in, we’re with you every step

Ready to experience the Luxe Living International advantage for yourself? Contact us today to start your journey toward Swiss real estate success. Our expert team is here to guide you every step of the way.