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Switzerland snubs tougher rules on foreign property ownership

The Swiss government on Wednesday said it would not push ahead with proposed legal changes that would have placed tighter controls on foreigners owning property in Switzerland.

Published: 20 June 2018 19:08 CEST

Switzerland snubs tougher rules on foreign property ownership

File photo: Depositphotos

The Swiss federal act on acquisition of real estate by persons abroad, popularly known as the Lex Koller, places certain restrictions on foreigners buying property in Switzerland.

The rules st ate, for example, that foreigners must apply for cantonal authorisation when purchasing holiday homes.

Read also: Fewer foreigners buy Swiss holiday homes

In early 2017, the Swiss government proposed changes that would have made it more difficult to foreigners to buy both property and blocks of land in Switzerland.

The proposals also envisaged tighter restrictions on the purchase of commercial property and on investment in real estate firms as a way to close loopholes in the current legislative framework.

Supporters of the changes had argued foreign investors were pushing up property prices and rents in Switzerland.

But opponents said the restrictions would harm the country’s economic growth. They also argued population growth and a desire for more square metres were pushing up prices, and not foreign investors.

After a consultation process, the Swiss government has said there is no need for further action at this time. It will, however, look at the possible limits on foreign investment in Swiss firms in specific circumstances.

Read also: Here's why Swiss rents are so painfully high right now

Checklist: What you need to do if you move house in Switzerland

Anyone who has ever moved, whether in Switzerland or elsewhere, knows it is not just a matter of simple logistics.

In fact, whether you are relocating to another town or canton, or just to another neighbourhood, moving is a big, expensive, time-consuming, and stressful experience.

These are various tasks you will have to cross off your list, one by one.

Getting your old apartment in order

It goes without saying that before you move out, you must make sure to leave the place clean and in order. Most people hire a cleaning company to do so, though you can, of course, do this yourself.

If, for instance, you broke or damaged anything while living in the apartment, you must repair it before you leave.

The condition of the apartment will be assessed during the final inspection process, when the landlord or the management company will write down all damages which you are responsible for either repairing yourself or paying someone else to do it for you.

You are not officially off the hook with your previous landlord until this process is completed.

De-register your old address and register the new one

Whether you are moving across the country or just across the street, this is an obligatory step.

You must let your ‘old’ commune’s population office (Einwohnerkontrolle / Contrôle des habitants/ Controllo abitanti) know you are leaving, and from which date.

You can do so either in person or (if available) online.

Then, when you settle in a new home, you have 14 days to announce your arrival in your new municipality, though in some places the deadline may be longer.

You will need the following documents:

A passport or ID card for each member of the family, in addition to a passport-sized photo for everyone
Documents relating to your family status — whether you are single, married, and with children
Your work or residency permit
Your lease contract or proof of home ownership
Your health insurance card or proof of your current health insurance policy.

The rules are the same regardless of where you arrive from, that is, if you are Swiss, an EU citizen or from a third country, however the supporting documentation may vary.

Some cantons may require other or additional documents, which you can find out ahead of time on your commune or canton’s website.

READ ALSO: Why you need to tell Swiss authorities where you live

Inform the post office about your change of address

To ensure that your mail arrives at your new home, fill out the ‘change of address’ form online at least four days before your move.

Four days is a minimum required time for the post office to process the address change and register it in the electronic database.

If you wait longer, your mail will continue to be delivered to the old address.

You also should notify these companies of your move and new address:

Your mobile telephone / internet provider (if you still have a fixed phone, you should have it switched off at the old address and re-activated at the new one)
Your bank
Your insurance companies (health, car, and any other ones you have, both mandatory and optional)
Your doctor / dentist

If you forget to inform anyone of your new address, no worries — the post office will automatically forward the letters to you, provided your notified them of the change (see above).

What about the tax office?

You don’t have to do a thing.

Your local commune will automatically inform tax authorities of your move, so there is no chance whatsoever that they won’t find you.

Rental versus owned property

If you move into a rental property, you don’t need to, in most cases, notify utility providers like the electric company of your move.

But if you are going to live in your own house, then you must let the local power company know to switch on your electricity supply.

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