Owning a property in Verbier is a dream that can easily become a reality with the right information and assistance. Switzerland is economically stabile with easy access to the rest of Europe, wonderful winter skiing with beautiful hot summers. Switzerland has many activities and attractions, making it at the perfect place to buy a property.
The Swiss have for a long time restricted the sale of property to foreigners with the Federal government setting an annual quota of permits for people wishing to purchase property. These permits are only available to foreigners in certain Cantons with the restrictions differing from one Canton to Canton. Due to high demand and restrictions, the number of permits available in the Verbier area is limited, but it is still possible to buy a beautiful chalet or apartment in the resort and nearby locations
If you are interested in purchasing a property email us with your details and what you are looking for and we will send to you information on a selection of properties that suit your needs.
Buyers Guide to Switzerland
Permits to purchase
There is an annual quota of permits (presently 1,440) in the whole of Switzerland which are made available to foreigners wishing to purchase property there. Only properties in a few of the cantons are authorised for sale and usually then only in resorts with tourist attractions. As well as limiting the geographical area in which foreigners are permitted to buy, they may also be restricted to buying certain types of property; in some cantons it is possible to buy an individual chalet, in others it is not. There may also be restrictions relating to the resale of the property; in some cantons foreigners are prohibited from selling the property within 5 years or 10 years of purchase to stop property speculation, but in Cantons such as Vaud (Villars) you may re-sell immediately. Your Swiss notary will apply for your permit once you have contracted to buy a property and usually this takes 12 weeks. Generally, the Canton of Vaud, (which includes the mountain resort of Villars and the lake resort of Montreux) is the most liberal canton offering the largest choice of property available for purchase by foreigners.
Purchase procedure and costs
A Swiss public notary will act for both the purchaser and the vendor. The purchase fees vary from one Canton to another. In canton Valais (Verbier) the total purchase costs (notary fees, land registry fees, and Government purchase taxes) amount to around 2.5% of the purchase price. In canton Vaud (Villars) the total purchase costs are 5% of the purchase price. The property must be purchased in the name of a private individual; it is not permitted to buy in the name of a limited company.
Swiss inheritance laws will apply to a property in Switzerland, so it is advisable to make a will which refers specifically to the property, and to lodge a copy of this with the notary.
Finance
Interest rates have always been lower in Switzerland than in the U.K. Typically, Swiss banks will lend up to 65% of the purchase price over 25 years, or up to 50 years. Effectively a Swiss mortgage is an overdraft secured against the property and it is very flexible. The borrower pays interest every 6 months on the capital amount outstanding and can pay off part of the loan on giving notice. Interest rates are currently around 3.5% for a variable rate, under 3% for 3 or 5 year fixed rates. We would be pleased to introduce you to a Swiss bank, we do not charge you a brokerage fee or receive commission.
Running costs
The property taxes vary from canton to canton. Typically the total annual expenses for an apartment in Verbier including all taxes and charges will be approximately Sfrs. 70,- per m2. This will cover all utilities (water, electricity) and insurance and the communal charges (heating, service, administration etc.) and local property taxes. Taxes in canton Vaud (mountain resort of Villars, lake resort of Montreux) are higher. Rental agencies usually charge around 20% commission for providing a full rental and management service. Most owners rent their apartments through such agencies on a weekly basis and set aside some weeks each season for their own use. Rental income is not taxable in Switzerland, but may be taxable in your country of residence.
ACQUISITION COSTS approximately 2,3% of purchase price
ANNUAL COSTS approximately 1.6% to 1.8% of the purchase price (heat, water, electricity, caretaker, administration, insurance, taxes, etc...)
NET INCOME Approximately 1% of the purchase price (after all the expenses have been paid)
ANNUAL APPRECIATION 5% to 10% of the purchase price CREDIT Up to 60% of the purchase price
INHERITANCE RIGHTS direct line : No Tax |
