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Eight reasons why buying a Swiss home is easier than you think

With its breathtaking Alpine views, fine chocolate, and high GDP per capita, life for expats in Switzerland must be good, right? Well, up to a point.

Published: 2 October 2020 07:00 CEST
Eight reasons why buying a Swiss home is easier than you think
Photo: Getty

It certainly attracts plenty of new arrivals with around a quarter of the working-age population being foreign nationals. But expats are often shocked by the cost of living. You won’t find many of them living in a Swiss castle. 

But is buying any property just too expensive or complex to contemplate? The Local has partnered with Hyppo.CH, which offers full mortgage assessments and advisory reports in English, to present eight reasons why buying a home in Switzerland could be easier than you think. 

1. Negative interest rates

“When they go low, we go high,” is Michelle Obama’s catchphrase. The Swiss National Bank could go with “When they go low, we go lower.”

We’re talking about interest rates, of course, not moral standards. Many developed countries have had historically low interest rates since the 2008 financial crisis. 

But Switzerland still stands out: it has had negative rates for more than five years and the current rate is minus 0.75 percent. As a result, ten-year fixed rate mortgage deals start at under one per cent – and even lower for five-year fixed deals.

Find out what you can afford and get a personal report in English from Hyppo.CH

2. Long-term loans

In some countries, a mortgage is considered a millstone and a loan lasting 25 or 30 years can seem like forever. But in Switzerland, it’s common for mortgages to last 50 to 100 years. 

Yes, your mortgage could easily outlive you. Spreading the costs over such a period helps keep monthly repayments lower. You might even pass the mortgage on to your kids, which is not unusual for the Swiss. 

3. Dividing up your deposit

To buy, you’ll probably need to pay a deposit of at least 20 percent of the property’s market value. That’s much lower than in neighbouring Germany but still a hefty sum.

Bear in mind, however, that in Switzerland, only 10 percent must be put down in cash and the rest can be made through your company or personal pension fund. Expats who have been in the country long enough to start building up a pension may qualify. 

When considering this option, you should carefully consider your circumstances and taking advice from a professional financial adviser is recommended – failing to keep up mortgage repayments could put your pension and your home at risk.

But it’s an important part of the Swiss way and your hosts are hardly renowned for being reckless with money, are they?

Think owning your own home is a distant dream? Find out now if you can afford more than you think

4. A country life (with quick commuter links)

So, it’s not only the castle overlooking the lake you can’t afford. Perhaps you’ve found a flashy city apartment might also prove out of reach.

Photo: Getty

How about a picturesque place in the countryside with some real Alpine air? The historic town of Olten, for example, is a rail hub, lying within 30 minutes of Zurich, Bern, Basel and Lucerne.

Commuters travelling into Zurich from all directions use S-bahn trains and a public transport network that’s the envy of many bigger world cities. Fares may not be cheap but a monthly or annual pass can also be used on trams, buses and ferry services. 

5. Get an expat assessment in English

Getting a Swiss mortgage can be a little more complicated for expats. In most cases, you’ll need a B residence permit – which lasts for up to five years – or a C settlement permit.

Even if you have your permit and are looking to stay long-term, you might be put off by the thought of trying to understand the system in a language you haven’t fully mastered.

With Hyppo.CH, you can do your mortgage assessment and get an advisory report in English – all with no commitment. Your personal report will save you time by setting out: 

  • Exactly what you can afford
  • Your options based on your residency status
  • Any hidden costs
  • Whether you qualify to buy
  • Easy-to-follow visual guides 

6. Tax deductible mortgage interest

Homeowners in Switzerland must pay income tax on their property’s rental value – the money they would receive if they rented it out. It may sound strange to expats but the idea is that homeowners have certain advantages over tenants, so the tax is intended to make things fairer. 

But it’s vital to know that mortgage interest payments are fully tax deductible, while other upkeep costs are partly deductible. This makes buying with a mortgage more affordable – along with the fact you’re no longer paying monthly rent.

Tired of your monthly outgoings on rent? Find out now if you qualify to buy

7. Stamp duty may not apply 

As with many things in Switzerland, the cantonal system leads to a complex patchwork picture on property purchase taxes. While most cantons do charge stamp duty, there are six that don’t but instead charge change of ownership and registration fees: Aargau, Glarus, Schaffhausen, Uri, Zug and Zurich.

Colourful homes in Zurich. Photo credit: Getty 

In the canton of Schwyz, there is no property transfer tax at all. Where you do have to pay stamp duty, the amount also varies by region: it’s negligible in some places but 3 percent in Geneva. 

In short, buying in certain regions offers significant tax savings. It would be wise to get professional advice, such as that offered by Hyppo.CH’s personal reports.

8. Lucky 13 

Are you one of the Swiss workers for whom there are 13 months in the year – or rather 13 pay checks? Sounds like something to yodel about – especially if you’re hunting for a new home. 

Applying for a mortgage based on your annual salary rather than what you receive in a normal month could help to bring the home you want within your price bracket.

Interested in buying in Switzerland but unsure where to start? With historically low interest rates and the quirks of the system, you may be able to afford more than you think. Get a full assessment and personal report from Hyppo.CH – in English and with no commitment.

 
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LIVING IN SWITZERLAND

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

Moving from one house or apartment in Switzerland to another is not as simple as just packing up your furniture. Instead, the process involves quite a few administrative tasks.

Published: 25 January 2024 12:10 CET
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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