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When thinking of buying a property in The Alps, it is always an exciting and fun prospect to gaze through all the extravagant and luxury chalets and apartments, imagining your new life owning a ski property. However, with varying rules and regulations across not only the different countries, but within the Cantons/regions themselves, it can often be tricky to understand where you are actually eligible to buy.
We have written an ‘all you need to know’ guide for purchasing property in Switzerland, France and Austria to help you understand where is best for you to buy.
Switzerland
Can foreigners buy in Switzerland? Yes, foreigners can buy properties in “touristic areas” which includes most ski resorts.
Do Swiss banks lend to foreigners? Yes, we can introduce you to local Swiss banks which will lend up to 70% to foreigners at rates under 1.5%.
Can I buy a property in the name of a company? No, foreigners must buy in their own name, except in Andermatt where you may buy through a Swiss or foreign company.
Can foreigners buy more than one property in Switzerland? No, foreigners (including married couples, who are considered as one buyer) may only purchase one property in Switzerland. The exception is Andermatt, where multiple properties can be purchased.
Can I buy property in the name of my children? Yes, if your children are over the age of 18 they can buy in Switzerland.
Can I rent out my Swiss property? Yes, foreigners may rent out their property when they are not using it for their own holidays. Some developments offer a full management and rental service.
What are the purchase costs buying a property in Switzerland? Purchase costs are cheap in Switzerland and total around 3% for notary fees, land registration, and purchase taxes.
Do properties in Switzerland hold their value well? Yes, property in Switzerland is one of the most stable real estate markets in Europe with high demand and limited supply.
Are there restrictions on reselling property in Switzerland? Yes, to stop foreigners speculating some Cantons will not permit resale until 5 years after purchase.
Which are the best Swiss ski resorts for dual season? Saas Fee, Wengen, Villars and Andermatt are our top resorts for a true dual season experience.
France
Can non-EU citizens buy in France? Yes, all foreigners can buy in France, and the process is very easy.
If I buy a property in France can I live there? No, France does not have a golden visa scheme so buying a property does not give the right to live in France. Non-EU citizens will be limited to 90 days and must apply for a visa to stay longer.
Can foreigners buy a property in the name of a company? Yes, and many buyers incorporate a French company to buy the property.
Can foreigners get a mortgage to buy in France? Yes, French banks will usually lend between 70% and 85% of the purchase price to foreigners. We can introduce clients to a specialist French mortgage broker.
Do I have to rent out my property? No, you are not obliged to rent out your property if it is a classic freehold. If you buy a new build French property you have the option to rent it out on a commercial basis and reclaim the 20% VAT.
How much are the purchase costs to buy a French property? If the property is over 5 years old the notary fees and taxes will be around 7 - 8% but are only 2-3% for a new build property. You may also reclaim the 20% VAT if you buy a new property and rent it.
How much are the annual taxes for a property in the French Alps? Annual taxes are not expensive in France. There are two local taxes, the housing tax ‘taxe d’habitation’ and the property tax ‘taxe foncière’ and are based on the cadastral value of the property. You don’t pay the “property tax’ for the first 2 years for a new build property.
Do I have to pay the French wealth tax even if I am a not resident in France? Yes, as a non-resident, you will have to pay the French wealth tax, but only if your French real estate assets (net of your mortgage) exceed €1.3 million. You will not be taxed on assets outside France.
How much is the wealth tax on property in France? The IFI is calculated on the portion above €800,000, starting at 0.5%, and rising in bands to a maximum of 1.5% for assets over €10 million.
Which are the best French ski resorts for investment? High altitude resorts such as Val d’Isère, Méribel and Courchevel are good investments but are expensive. Buyers get more for their money in Alpe d’Huez and les Deux Alpes where new apartments start at around 300,000 euros and qualify for the 20% VAT rebate.
Which are the best French ski resorts for dual season? Chatel, Morzine and Les Gets are lovely in summer and only 90 minutes from Geneva.
Austria
Can foreigners buy property in Austria? Yes, EU citizens can buy in Austria but only a few properties are available for sale to non-EU citizens. Most properties which are available to non-EU buyers are in the Salzburg province region and you can search for them on our web site here.
Can a non-EU citizen buy in Austria in the name of a company? No, a foreign company must have at least 50% of the shareholders resident in the EU to purchase a property in Austria.
Can a foreigner get a mortgage to buy in Austria? Yes, Austrian banks will usually lend up to 60% of the purchase price over 10-25 years.
Do Austrian properties have VAT, and can I reclaim it? Yes, VAT is charged at 20% on newbuild properties but if you rent it commercially you can claim it back.
Do I have to pay estate agency fees to buy a property in Austria? Yes, usually buyers and sellers each pay up to 3% of the purchase price plus 20% VAT, which totals 3.6% per party but Investors in Property do not charge the purchaser any additional fees on top of this.
How much are the purchase costs to buy a property in Austria? Usually, the total purchase costs for taxes, notary fees and administration are around 6.6% of the gross purchase price.
Can I live in my holiday property in Austria? Only second home status properties can be used extensively by the owner.
How many weeks can I use my holiday property in Austria myself? Most Austrian properties have a rental obligation, and owners are limited to 4 – 8 weeks personal use per year.
How much tax will I pay on rental income renting my property in Austria? Non-residents will only be taxed on the net income (after deduction of allowable expenses such as mortgage interest, repairs, insurance, depreciation, management fees) from their Austrian property. The first €11,693 is tax-free and additional profit is taxed at the same progressive Austrian income tax rates as for residents starting at 20%.
How much are the annual property ownership taxes in Austria? Annual property taxes in Austria are generally modest and will usually be in the range of 0.1% to 1%. The federal and local annual taxes are based on a tax value (Einheitswert) rather than true market price.
How long is the buying process? For EU citizens the process can be between 1 – 3 months, and for non-EU citizens it can take up to 6 months.
Which are the best Austrian ski resorts for investment? Zell am See, Saalbach and Bramberg have some fantastic developments which come with professional rental management and high-end hotel facilities and services.
Which are the best Austrian ski resorts for dual season use? Kitzbuhel, Kirchberg and Zell am See are excellent dual season resorts making them very popular year-round.
If you have more questions on buying a property in the Alps or would like a more detailed explanation on any of the questions above, either take a look through our Buyer’s Advice page, or contact us here. We have been selling ski chalets and apartments for over 35 years and are always more than happy to explain the purchase process, give expert advice or recommend some exceptional properties on the market.
