Purchase
Any person residing in Switzerland can easily purchase residential property. Only the acquisition of residential property by individuals resident abroad (“persons abroad”) is subject to certain legal restrictions ('Legal aspects: building permits'). The home ownership rate in Switzerland is about 40%. It is especially high among families with children and older people and in the higher income brackets.
Once the right property has been found, the next step is to sign a contract of sale. This contract forms the basis for any real estate acquisition and must be drawn up and attested by a notary. It obliges the seller to transfer the property and the buyer to pay the agreed purchase price. The contract also describes the property and stipulates the date on which the property will be handed over and the securing of any capital gains tax on the property.
Market prices for owner-occupied apartments, as of fourth quarter 2008
In CHF per square metre of net internal area (median)
Source: Wüest & Partner
Before signing the contract, it is advisable to check the land registry to see whether any rights and encumbrances are associated with the land on which the property stands or will be built. By providing proof of interest, you can obtain detailed information in the form of an extract from the land registry. A fee is charged for this extract. The information recorded in the land registry can be complex. Although a right-of-way is easy for the layperson to understand, the situation is much more complicated when it involves building law or regulations applying to condominiums. In these cases, it may be advisable to consult an expert. The notary who handles the sale can also provide further information. The contract of sale, which must always be publicly attested, represents the actual underlying transaction and is required for subsequent registration in the local land registry. Ownership actually passes to the buyer when the land registry entry is made. There is no centralized land registry for all of Switzerland; each canton maintains its own registry under the supervision of the Federal Office of Justice.