Switzerland and Ticino Real Estate Practice

Fees and costs vary in each of the 26 different Swiss cantons, while the general practice of buying is similar all over the country.

Sales commissions of between a minimum of 2% and 5% are included in the sales prices and will therefore be paid to the agent by the vendor (seller). The agent should not ask for a buyer’s fee unless an explicit mandate to search for specified property is contractually agreed upon.

Sales cost (notary, stamp duty, sales tax and registration fee) will be a total of 1% - 4.5% of the purchase price. In some cantons, it will be split between the buyer and the seller while in Ticino, the buyer pays all of it and it's about 2% all inclusive.

There are no multiple listing services in Switzerland although some agents share properties between themselves through individual agreements or networks. Mortgages are widely available to foreign buyers. Most Swiss banks will finance between 50% and 80% of purchase value, subject to status. You can currently get financing from banks in CHF at 1% interest rate per annum with short term interest rates (1 or 3 month  CHF LIBOR).

Residential sales to foreigners are subject to approval from Swiss authorities. Holiday residences (where position, a maximum house area of 200 square meter and yearly overall number of properties are subject to contingent), will need a “buying permit”. You can buy up to 1000 square meter of a parcel, but construction works need to be started within 2 years after purchase date.

A “permit of residence” is a necessary condition for a first residence. The cost of such a permit might be a few thousand Swiss Francs.

A sale contract may be signed at any time at a notary, who will then apply for the necessary permit. The notary will register the purchase only after receiving the necessary permit. The issue of a Permit to Purchase will take approximately 3 month; while issue of a Primary Residency Permit might take only a few weeks.

In order to have a Primary Residency Permit you need a contract work, be and independent professional or create your own company. Wealthy people can enjoy a special taxation but they cannot work and get any source of income generated in Switzerland.