The Dutch often know Switzerland from winter sports holidays, walking holidays or city trips. We understand that with such a beautiful view of the mountains, for example, you dream about a second home or holiday home in Switzerland. Do you want emigrate to Switzerland? Have you ever thought about an affordable moving company? Then read on.
Do you also want to emigrate to Switzerland?
However, emigrating Dutch people would rather invest in real estate. Here they look at apartments or want an apartment to be built in the area of their choice. In Switzerland, a chalet is also very popular. The Dutch who would like to emigrate to Switzerland therefore wonder how you can buy a house there and whether this is even possible.
Can a foreigner buy a house in Switzerland?
It is indeed true that it is not allowed for non-Swiss residents to buy real estate in Switzerland with a residential destination. You may have heard of the 'Lex Koller legislation' before. The rule that non-Swiss residents are not allowed to buy a house is legally established by this legislation.
Are there any exceptions?
Of course, exceptions apply to this legislation. This legislation regulates everything related to investing in real estate by foreigners.
Exemptions
Every year, 1500 exemptions are distributed across the 26 cantons in the country. Unfortunately, there are restrictions attached to these exemptions, namely:
- The maximum habitable living area may not exceed 200m2.
- The maximum size of the plot of land that is fully owned may not exceed 1000 m2.
Applying for a mortgage in Switzerland?
In Switzerland you can definitely apply for a mortgage. There are even various ways to finance real estate. However, this is always in combination with asset management. It is even the case that in Switzerland the banks are prepared to finance up to approximately 60% of your second home!
Swiss banks
It is also good to know that only banks established in Switzerland are allowed to do this. Foreign banks are not allowed to give you a mortgage for a house in Switzerland.
Can everyone live and work in Switzerland?
All residents of the European Union (EU) or the European Free Trade Association (EFTA) country, in English called EFTA country, are allowed to settle in Switzerland. However, you are required to prove that you have an income in Switzerland.
Rent out your Swiss home
In Switzerland, the law states that you are not allowed to rent a house to permanent residents. The government wants to prevent trade on the housing market. You are only allowed to rent your house to tourists in Switzerland. It is wise to inquire about the rules for this in your own canton. You can do this with an estate agent, for example. This is because regulations can differ in cantons.
Taxes in Switzerland?
First of all, it is good to know that Switzerland does not have inheritance tax. Furthermore, you will not encounter any hidden pitfalls in Switzerland when it comes to taxes. 'What you see is what you get'. All taxes are known and you will not encounter any unwanted surprises. It is also wise to look at the rules of your canton, because the rates can differ per canton.
Taxes in Switzerland
When you buy a house in Switzerland, the country will levy tax on your wealth, real estate and income tax. And also on possible rental income. This is because the real estate you bought is of course in Switzerland and almost all tax treaties state that this is possible. The country where the real estate is located can levy tax.
Rental value
In Switzerland it is arranged that if you do not rent out the house, the house will still be assigned a rental value. You must add this to your taxable income. An advantage of this is that you can deduct all costs including interest on your mortgage from this. As a result, there is usually too little left for Switzerland to be able to tax.
Finally..
As you have read, it is wise to inform yourself well before you move to Switzerland. Also delve into the Swiss culture, the language and daily life. For example, do not forget that you cannot pay with the Euro in Switzerland, but only with the Swiss Franc. For the Swiss, this is their safe haven and they do not want to have anything to do with the Euro.
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We would like to inform you more about your emigration to Switzerland. Therefore, please continue reading the other articles on our website.
