Purchasing real estate

How to successfully buy a home in Switzerland

Did you know that only 36% of the Swiss population live in their own homes? This is one of the lowest rates in Europe.

Buying a house in Switzerland is a complex process that requires careful planning and in-depth knowledge. From prerequisites and financing to successful property transfer, every step should be well considered.

The equity required for purchasing a home in Switzerland is a major challenge for many. However, with the right preparation and professional support, becoming the owner of your home is certainly achievable.

This comprehensive guide walks you step by step through the entire buying process. From initial planning to the handover of keys, you will learn everything you need for a successful home purchase.

Key preparations for buying a home

Buying a home in Switzerland starts with careful preparation. At smzh ag, our experience shows that a structured approach is essential for a successful property purchase.

Define your personal goals and requirements

Before tackling the financial aspects, it’s important to define your personal objectives and expectations. Key questions to consider include:

• How long do you plan to live in the property?

• What are your requirements regarding size and features?

• What locations best suit your personal and professional needs?
• Should the property also meet your needs as you grow older?

Assess your financial situation

Financial planning is crucial when buying a home in Switzerland. We generally recommend providing at least 20% equity for financing. In this context, an honest assessment of your financial means is indispensable.

Don't forget to factor in ancillary costs, which can vary greatly by canton. For example, in Basel-Landschaft, the property transfer tax is 2.5% of the purchase price. If you buy a property for CHF 800,000, this translates to CHF 20,000 in additional costs.

Set a realistic timeline and milestones

A realistic schedule is essential for a successful property purchase. Consider the following phases:

1. Preparation: Obtain financing approval and define your search criteria
2. Search: Visit properties and compare options
3. Negotiation: Make your offer and clarify contract details
4. Completion: Arrange notarization and property transfer

Thorough preparation helps you avoid problems later on. Securing professional support from the outset is particularly important. An experienced real estate expert can provide objective evaluations and point out potential pitfalls.

Plan equity and financing

At smzh ag, we know that financing is at the heart of a successful home purchase. Let’s review the key financial factors together.

Identifying sources of equity

You’ll need at least 20% of the property’s value in equity:

Hard equity (minimum 10%):

• Savings and salary accounts

• Securities and valuables

• Funds from pillar 3a

• Advance inheritances or gifts

Soft equity (up to 10%):

• Pension fund (2nd pillar) advance withdrawal

Note: Stricter rules apply for vacation properties (at least 40% equity required, and pension assets such as pillar 3a and pension fund savings may not be used).

Compare mortgage options

At smzh ag, we help you analyze different mortgage models. Typically, a mortgage is split into two parts:

First mortgage: Covers up to two-thirds of the purchase price, with no amortization obligation.

Second mortgage: Must be repaid within 15 years.

Calculate affordability

Your home financing must be affordable; monthly costs should not exceed one-third of your gross income. We calculate:

1. Mortgage costs: Based on a notional interest rate of 5%
2. Amortization: Repayment of the second mortgage
3. Maintenance and ancillary costs: About 1% of the property’s value per year

For example: With a property value of CHF 800,000, you need at least CHF 160,000 equity and a minimum gross income of CHF 141,333.

It’s essential to maintain reserves for unexpected expenses. Our experience shows that a financial buffer for renovations or repairs is crucial.

Finding the right property

In Switzerland, we use a combination of digital and traditional methods for property searches. Our experience at smzh ag shows that over 94% of buyers use the internet when searching for real estate.

Define search criteria

We recommend specifying your search criteria precisely. Important aspects include:

• Price range: Based on your affordability calculation

• Location: Preferred and alternative regions
• Property type: Single-family home, condominium, or multi-family house
• Lot size: Minimum and maximum square meters
• Floor plan: Number of rooms and usable area
• Year built: New or existing property

Effectively use property portals

Digital searches are increasingly made via mobile devices – already 40% of portal visits originate on smartphones or tablets. The leading Swiss platforms are:

ImmoScout24 and Homegate: The broadest range of listings. We recommend setting up alerts to immediately see when new properties are listed.

smzh advice: Neubauprojekte.ch gives you early access to newly built properties before they are listed on other portals.

Prepare for viewings

A professional viewing covers these six areas:

1. Location and surroundings: Infrastructure, transport links
2. Plot: Orientation, topography
3. Garden: Condition, usability
4. Building: Structure, need for renovations
5. Interior: Layout, lighting
6. Ancillary costs: Operating and maintenance costs

Keep a detailed viewing protocol for objective comparisons. If you have doubts regarding construction quality, consult a specialist.

Do not let yourself be out under pressure, especially for in-demand properties. Take the time you need to make a well-founded decision.

A successful start to the purchasing process

Once you have found your dream home is when the decisive part of a property purchase starts. At smzh ag, we support you in this important process with our years-long experience.

Develop a professional purchase offer

A professional purchase offer significantly increases your odds of getting accepted. Our experience shows that the following elements are decisive:

• Detailed description of the property
• Specific offer including rationale
• Financing confirmations from the bank
• Transaction timetable
• Conditions and reservations
• Validity of the offer

We recommend submitting the offer in writing even if there is no legally binding formal requirement. Doing so creates clarity and obligation for both parties.

Apply negotiation strategies

In price negotiations, having a sound strategy is essential. Our data show that well-prepared buyers on average achieve better terms. Successful negotiation adheres to this process:

1. Analyze a property's market value
2. Identify leeway in negotiations
3. Communicate initial ideas regarding price
4. Present objective arguments
5. Signal willingness to compromise

It is particularly important to support the negotiations with a bank-certified real estate appraisal, as doing so lends additional weight to your case.

Examine reservation agreement

A reservation agreement is an important interim step on your way to a purchase contract. In particular, we mind the following aspects:

A reservation agreement is only legally binding once all elements of a draft purchase contract are available. The down payment should range between CHF 20,000 and 100,000 depending on property size.

Important points to examine:

• Validity of the reservation

• Amount and use of down payment

• Recission modes

• Conditions for contract signing

Creating a reservation agreement requires particular care. A notarial certification is not necessarily required, but having one increases the legal security of an agreement. Our experts examine every draft contract for potential risks and pitfalls.

Managing legal aspects

Special attention needs to be paid to the legal aspects of real estate purchases in Switzerland. As your subject-matter experts, we support you in every legal step so you feel secure and well supported at all times.

Examining and understanding the purchase contract

The purchase contract is the central document of a real estate purchase. We strongly recommend having it examined by an independent specialist, as a notary will examine the legal provisions, but without necessarily representing your personal interests.

The following documents are required for a contract examination:

• Draft contract
• Extract from the land register
• Construction description (in case of new constructions)
• Proof of buildings insurance
• Energy statement
• Floor plans and construction plans

Preparing for the notary appointment

The notary appointment represents a decisive moment when buying a home. The official certification takes about 45 to 60 minutes. We guide you through this important process, paying attention to the following steps:

1. Examination of documents: Ensure the completeness of all documents
2. Proof of financing: Prepare the bank's promise to pay
3. Proof of identity: Have your valid identification documents ready
4. Purchase price redemption: Clarify payment modalities
5. Handover appointment: Fix a date and time to hand over the keys

Organizing the land register entry

The legal transfer of property ownership only takes effect once it is registered in the land register. As your advisors, we ensure this process runs smoothly from start to finish. The registration is conducted according to a clearly defined process:

Phase 1: Application The notary submits the transfer of ownership to the responsible land registry office. This application is recorded in the official journal, thereby securing your claim.

Phase 2: Review The land registry reviews all documents for completeness and legal accuracy. Special emphasis is placed on the legality of the ownership transfer.

Phase 3: Entry Once the review is complete, the land registry officially enters the new ownership. In most Swiss cantons, fees are approximately 0.1% of the purchase price. For a purchase price of CHF 1,000,000, this would come to CHF 1,000.

We take particular care to keep you informed at every stage of the process. Depending on the canton and current workload, registration may take between one and five business days. In some cases – for instance when pending registry entries exist – registration can be delayed by up to 30 days.

Planning insurance and ancillary costs

As experienced financial advisors, we know that careful planning of insurance policies and ancillary costs is crucial for a successful real estate transaction. Our expertise shows that total ancillary costs can total up to 5% of the purchase price.

Arranging buildings insurance

Buildings insurance forms the foundation of your risk protection. In most Swiss cantons, it is mandatory and covers:

• Damage from fire and water
• Damage from natural events
• Glass breakage and structural damage
• Domestic technical installations

In Geneva, Uri, Schwyz, Ticino, Appenzell Innerrhoden, Valais, and Obwalden, you can choose private insurers. In all other cantons, the cantonal building insurance provider is responsible for coverage.

Calculating property transfer tax

Property transfer tax rates vary considerably between cantons. Here are the principal rates:

Highest rates:

• Neuchâtel: 3.3% of purchase price
• Basel-Stadt: 3.0%
• Geneva: 3.0%

Moderate rates:

• Bern: 1.8% of purchase price
• Lucerne: 1.5%

We recommend factoring this tax into your financial planning from the outset. For a purchase price of CHF 800,000, the cost can range from CHF 12,000 to CHF 26,400, depending on the canton.

Factoring in notary fees

Notary fees are another significant cost factor that vary by canton and type of notary:

State notary (e.g., Zurich): Fixed fees, typically around 0.1% of the purchase price.

Independent notary (e.g., Bern, Basel): Fees range between 0.35% and 0.56% of the purchase price. We advise obtaining several quotes in such cases.

We want to ensure you have a realistic overview of the total costs. For a purchase price of CHF 1,000,000, you should budget for:

1. Property transfer tax: CHF 15,000 – 33,000
2. Notary fees: CHF 1,000 – 5,600
3. Land register fees: CHF 1,000 – 2,000

Note that these costs must be covered from your own resources and cannot be financed by your mortgage. We support you in preparing a detailed financing plan that covers all these aspects.

For the highest possible planning reliability, we prepare an individualized cost breakdown tailored to your specific canton and personal situation. This way, you avoid unpleasant surprises and can complete your purchase with confidence.

Preparing for handover

The final phase of the property transaction is the handover. As your experts at smzh ag, we recognize that this stage requires special care and precision. A professional handover protects both parties and ensures a smooth conclusion to the process.

Creating a handover protocol

The handover protocol is the most important document at closing. We recommend preparing it in two copies – one for the seller and one for the buyer.

The following items must be included:

1. Basic information

• Names and addresses of both parties
• Detailed property description
• Date and time of handover
• Attending persons

2. Technical details

• Meter readings (electricity, water, gas)
• Oil tank level (where applicable)
• Handover of technical documentation

3. List of keys

• Number and type of all keys
• Matching keys to doors/access points
• Confirmation of complete handover

Documenting defects

Absolute precision is required when documenting defects. We recommend conducting the inspection in daylight for optimal conditions.

Key inspection areas:

• Functionality of all windows and doors
• Condition of floors and walls
• Functioning of technical installations
• Condition of sanitary facilities

Important: Unless otherwise agreed in the contract, defects must be reported within a few days after handover. For new builds, there is a two-year notification period under SIA Standard 118.

Organizing key handover

Transferring the keys marks the transfer of use and risk. We ensure this step is conducted professionally and legally sound.

Please prepare:

• User manuals for technical equipment
• Maintenance contracts and warranty documents
• Insurance policies
• Chimney inspection certificates
• Building plans and layouts

During handover, we jointly check:

• That all keys are present
• That all locking systems function correctly
• That all access codes are documented
• That all remote controls are handed over

Very important: Do not rush the handover process. Take the time needed to review all details thoroughly. Careful documentation protects you against later disputes.

Should defects arise after handover, the following options are available:

• Rectification: Seller remedies the defect
• Price reduction: Purchase price is reduced to reflect the defect
• Contract revocation: In severe cases, the contract may be cancelled

For hidden defects that only become apparent later, the statute of limitations is five years. However, you must be able to prove that the seller deliberately concealed the defect.

At smzh ag, we are committed to ensuring your property handover is both stress-free and thoroughly professional. Our experience ensures no important detail is overlooked, enabling you to take possession of your new home with complete confidence.

Important steps after purchase

After a successful property handover, the implementation phase begins. smzh ag stands by your side through the key steps following your purchase, so you quickly feel at home.

Planning and carrying out the move

Experience shows that a well-organized move makes settling into your new home much easier. We recommend approaching your move systematically:

1. Preparation phase (8–6 weeks prior)

• Fix a moving date
• Hire a moving company or organize helpers
• Start decluttering

2. Organization phase (4–2 weeks prior)

• Obtain packing materials
• Update your address
• Inform all insurance companies

3. Moving phase (1 week prior)

• Disassemble furniture
• Pack valuables separately
• Brief helpers

Handling administrative requirements

After moving in, several administrative tasks require your attention. Most importantly, you must register with your new municipality within 14 days.

Key steps:

• Local registration: In-person registration with valid ID documents
• Dog owners: Update dog registration within 10 days
• Vehicle owners: Update vehicle documents
• Insurances: Adjust all insurance policies as needed

EU/EFTA citizens enjoy the same property rights as Swiss nationals and do not require special permits. Third-country nationals, however, must fulfill additional requirements and may need to apply for a purchase permit.

Coordinating renovations

Ideally, you should coordinate renovation work before moving in. Experience shows that early planning is crucial to avoid delays and unnecessary costs.

Tips for successful renovation planning:

• Contact tradespeople early and obtain quotes
• Prioritize by urgency
• Prepare realistic work schedules
• Plan a reserve budget for unforeseen expenses

For comprehensive renovation, we recommend three key rules:

1. No construction without a solid plan
2. Damage repair takes priority
3. Always renovate from outside in

Energy upgrades are particularly important, and in some cases required by law. Key measures include:

• External insulation
• Installation of energy-efficient windows
• Heating system modernization
• Upgrading shutters and doors

Skilled homeowners may wish to handle part of the renovation themselves to save costs although essential work such as electrical, roofing, and heating should always be performed by licensed professionals.

We suggest doing any upgrades in adherence to the following steps:

1. Assessment of current condition

• Document the property’s condition
• Engage a building surveyor
• Evaluate energy efficiency

2. Establish action plan

• Set priorities
• Obtain cost estimates
• Define a timeline

3. Coordinate implementation

• Hire necessary contractors
• Oversee work scheduling
• Maintain quality control

Comprehensive renovations can be a significant investment – expect costs of 30–50% of the purchase price, depending on scope. Professional planning and coordination will help you maximize the value of your investment.

At smzh ag, we help you prioritize and select suitable contractors, ensuring that your renovation planning saves costs and adds value to your property. If you require any further guidance, the smzh ag team is by your side for every step of your property journey in Switzerland.