Buying property in Switzerland
is complicated for foreigners. The Swiss government has
regulations which limit the number of purchases and the amount
of land which can be sold to non-nationals: currently there are
about 1400 such permits each year.
These
are allocated to the 26 "Cantons", and some cantons may reach
their own annual limit while the national total remains below
the limit for the country as a whole. In addition, each canton
imposes its own limitations, which may include minimum periods
of several years before resale is allowed. The "area" limit
restricts individual foreign owners (including married couples)
to 100 square metres, but co-ownership can be used to combine
such allocations in order to buy a single larger area.
Because of these limitations demand tends to exceed supply:
in some cantons there are waiting lists of as much as 2 years
for foreign purchase permits, and prices are correspondingly
high. Chalets in popular resorts are typically in the range of
£300,000 to £1m. Purchase costs involve a purchase tax (which
includes notaries' fees) of 2.5% to 5%.
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