Switzerland is not just a picture-perfect destination. It is also a hotspot for smart real estate investors. With a stable economy, stunning views and consistent demand for rental properties – it is an excellent choice if you are thinking about luxury property.
If you are looking to buy a luxury Swiss property for renting out, here is your guide—packed with practical tips and insights to get you started.
Why Switzerland for real estate?
Switzerland combines stunning scenery with a world-class quality of life. Its financial strength and political stability attract investors from everywhere. Each region has something unique to offer – whether it is the ski resorts of Zermatt or Grimentz, Zurich’s cosmopolitan vibe, Lake Geneva’s tranquillity, the beautiful village of Champéry, or the picturesque Crans-Montana.
Did you know? Residential property prices in Switzerland are still climbing, which makes luxury Swiss property even more desirable. Yes, there are strict regulations for foreign buyers, but the long-term benefits usually outweigh these hurdles.
Where to look for luxury properties
Switzerland has options for every investor, depending on your goals such as…
Can foreigners buy rental property?
Yes, foreigners can buy luxury Swiss property. But it is not as simple as in many other countries. According to Lex Koller law, the Federal Act on the Acquisition of Real Estate by Persons Abroad, non-residents and individuals from non-EU/EFTA countries usually need a permit to buy property. Without this permit, the property transfer cannot be legally registered.
However, EU/EFTA residents living in Switzerland do not face these restrictions and can purchase property more easily, so long as they meet the necessary residence requirements, such as being employed or financially self-sufficient.
Types of properties you can buy
Primary residence – If you have a valid Swiss residence permit (B or C permit) – you can buy a home for your own use without much hassle.
Secondary residence – If you are not a resident, buying a holiday home is tricky. There is a limit to how many permits get issued each year.
Investment properties – Non-residents are not generally able to buy luxury property just for investment. But commercial properties, like hotels or office buildings, could be allowed.
The Lex Koller law governs the purchase of residential property by foreign buyers in Switzerland.
Also, foreigners are often restricted to properties with land no bigger than 1,000 square meters (or about 10,763 square feet). At Mansion Properties, we have many properties that fit within this land requirement. For example, our 4 bed luxury chalet in Crans-Montana, our 5 bed duplex apartment in Grimentz or our luxurious 5 bed chalet in Champéry.
Holiday Rentals in Switzerland
Switzerland offers a prime opportunity for holiday rental investments, thanks to its stunning landscapes and year-round appeal. Foreign investors, however, must navigate the Lex Koller law as mentioned above, which restricts non-residents from purchasing residential properties unless they meet specific conditions. Non-residents are allowed to buy in designated tourist areas for personal use, depending on the area.
Additionally, accommodation services are subject to a VAT rate of 3.8% in Switzerland.
Certain regions, such as Zermatt and Verbier, offer more favourable conditions for holiday rental investments, due to the demand and premium pricing.
Why invest in a Swiss luxury property
High demand – Properties in major cities or resorts rarely stay empty.
Better returns – The price of properties in Switzerland keeps on increasing. So, if you invest today, you will get better returns tomorrow.
Diverse choices – From sleek city apartments to peaceful lakeside villas – there is something for everyone.
Top quality – Swiss homes are solidly built. You will find great craftsmanship – whether it is a ski chalet or a sleek urban apartment.
Breathtaking views – Many properties come with stunning views of mountains, lakes, or quaint towns, making them irresistible to renters.
How to buy luxury Swiss property
1. Get a Swiss residence permit
A residence permit is essential for foreign buyers. It allows you to buy property, set up utilities, and manage taxes in Switzerland.
The most common permit for property buyers is the B permit. You can apply for it at the migration office in the canton where you plan to live.
Processing can take a few weeks to a few months.
2. Open a Swiss bank account
Opening a Swiss bank account is necessary for transferring funds, managing property payments, and collecting rental income. Identification, proof of address, and property information are required. Many Swiss banks offer services for international clients, so compare options to find the best terms.
3. Pick the right location
Choose areas with high rental demand. Zurich, Geneva, and popular ski resorts are safe bets. Think about proximity to transport, amenities, and attractions, too.
4. Work with a local agent
A knowledgeable real estate agent can be of great help. They will help with market trends, negotiate deals, and handle the legal stuff. At Mansion Properties, we provide expert guidance at every stage, ensuring a smooth and informed property-buying experience, whether you’re an experienced investor or new to the Swiss market.
5. Inspect and upgrade
Inspections are crucial – especially for older properties. If you are targeting luxury tenants, your property needs to match their expectations. That could mean adding modern appliances, eco-friendly upgrades, or aesthetic improvements.
6. Look for financing options
Swiss banks offer mortgages to foreigners but expect to pay at least 20% upfront. Compare lenders to find the best terms.
7. Seal the deal
Once you agree on the price, you will sign a contract with the seller. A notary usually handles this to make sure everything’s legal.
Tips to boost rental potential
Understand rental laws – Swiss tenancy laws favour tenants, so learn your obligations.
Market well – Use great photos and highlight unique features.
Consider seasonal rentals – In ski areas, short-term holiday rentals can be more lucrative than long-term leases.
Price competitively – Check rental rates in your area to set the right price.
Final thoughts
Investing in luxury Swiss property is more than a financial move. It is about owning a slice of one of the world’s most beautiful, luxurious countries. With some planning and the right help, investing in Swiss property is absolutely doable.
With Mansion Properties, buying luxury Swiss properties in locations such as Lake Geneva, Zermatt, and Crans-Montana is a smooth process.
So, ready to take the plunge? With Mansion Properties, owning a luxury property in Switzerland could soon be your reality! Contact us for more information and any advice you may need.
