Buying Property in Verbier

Who can buy?

Buying rules are strict and depend on your nationality and residency status:

• Swiss or permanent residents (permit C) – you can buy without restrictions.
• EU/EFTA citizens with residence permits (B or C) – generally no restrictions on buying a home.
• Non-EU citizens with a B permit – you can buy one property as your main residence.
• Foreign non-residents – you can only buy a holiday home in certain tourist areas (like Verbier), subject to quotas and size limits.
• Commercial property – no restrictions, anyone can buy.

Buying a holiday home as a non-resident

If you’re not resident in Switzerland, you can still buy in Verbier but only under the Lex Koller law, which means:

• Property must be in a designated holiday zone.
• There are strict quotas (only a limited number of permits per canton each year).
• Size is capped (generally 200 m² living space and 1,000 m² land, though exceptions exist).
• It must be for personal use – you can rent it out periodically but not permanently.
• Each foreign family (married couple and children) can own only one holiday home.

1. Check if you’re eligible (holiday home vs. residence).
2. Apply for authorisation if you’re a non-resident.
3. Sign a preliminary agreement with the seller and pay a reservation fee.
4. The notary gathers approvals and handles the contract.
5. Completion and land register entry – usually takes two to six months.

The process of buying in Switzerland depends on whether you’re Swiss or foreign.

• Swiss to Swiss – straightforward, no permits or restrictions.
• Swiss to foreign buyer – the property usually needs to have been owned for at least five years before it can be resold. The notary submits a declaration of intent and the authorities check if a permit from the quota is available. Once approved, the buyer has a month to sign the deed. You can’t take possession until the permit is issued.
• Foreign to foreign buyer – allowed if the seller has owned the property for at least five years and originally purchased it with a quota unit.
• Foreign to Swiss buyer – again, the property generally needs to have been held for five years before resale.
• New builds – foreigners can buy new or off-plan homes in designated holiday zones, but the same permit and quota rules apply.

The notary handles most of the paperwork, including checking quota availability and getting approvals. The whole process usually takes a few months from offer to completion.

When you buy in Switzerland, you’ll need to budget for more than just the property price.

• Purchase fees – these cover notary charges, land registration and transfer tax, which together usually add a small percentage to the total. Agency fees are generally paid by the seller unless agreed otherwise.
• Ongoing shared costs – if you buy an apartment or property within a residence, you’ll contribute to communal expenses such as heating, insurance, snow clearance, cleaning, repairs and a renovation fund.
• Local and cantonal taxes – expect annual property taxes which vary depending on location and whether the home is new or older. You may also face income tax on a notional rental value, wealth tax on the property’s assessed value (with mortgages deductible) and capital gains tax when you sell. Inheritance rules differ by canton but transfers between spouses and direct heirs are often exempt.
• Tourist tax – second home owners pay a sojourn tax to the local tourist office, either calculated per night or set as a flat yearly fee.
• Insurance and utilities – fire and water damage cover is compulsory, and you’ll also pay for your own electricity, water and drainage.
• Property management – if you don’t live in Switzerland year-round, local agencies can manage bills and upkeep for a yearly fee.
• Mortgages – Swiss banks typically lend a portion of the property’s value, with different limits for main residences and holiday homes.

Getting a mortgage in Switzerland works a little differently to what you might be used to. Banks usually expect you to put down a deposit and may split the loan into two parts with different repayment terms. Repayment periods can be long and interest rates are generally competitive compared with many other countries.

Unusually, you can sometimes use your pension fund to help secure a mortgage, either by pledging it or withdrawing part of it, though this carries risks if you default. Lenders will also look closely at your income and ongoing costs to make sure repayments are manageable.

Foreign buyers can usually apply for a mortgage if they hold the right residency permits, although rules vary by canton and there are restrictions on holiday homes in some areas. Mortgages are arranged directly with banks and there are several types available, from fixed to variable rate, but you won’t generally find interest only or 100 percent mortgages.

Buying property abroad is exciting but it also comes with its share of tax and legal considerations. You’ll need to think about things like UK taxation, capital gains, inheritance rules and the possibility of double taxation, as these can vary widely from country to country. Renting out your home will usually mean declaring income both in the UK and locally, and selling a second home abroad may trigger local gains taxes. Because succession and inheritance laws can also differ greatly, it’s best to take proper legal and tax advice before you commit.