Buying a Ski Chalet in Switzerland

With its majestic mountains, good snowfalls and well-established ski culture, Switzerland is an ideal location to look at ski chalets for sale. Buying that dream in this well-organised country couldn’t be easier as Switzerland has clear regulations and laws that govern the sale of resort properties to foreign buyers. Providing you follow these rules, you will have a hassle-free experience and soon be on the piste.

The Swiss restrict the sale of second homes to foreigners and have an annual quota of 1,500 permits. In addition to that only certain properties in some Cantons, or regions, are authorised for sale. These are usually in tourist resorts, which is good news if you are hoping to earn some income from letting out your property. You can own one property per family and you or your friends must use the property for at least three weeks of the year. During the other 11 months and one week you can rent out the property.

When it comes to finding a ski chalet each Canton has slightly different rules, such as what you can purchase and how long before you can resell. These rules can vary from commune to commune, (the local areas within that region). You will need to employ a Swiss notary to help you with your purchase so they can explain the finer details to you throughout the process.

In general Canton Vaud is the most liberal, where you’ll find the resort of Villars. Obwalden (which boasts the resort of Engelberg) has plenty of foreign purchase permits and few restrictions. Where demand is high such as in Canton Valais, where the popular resorts of Zermatt and Verbier are located, there are less permits and stricter rules about new builds. In Canton Berne, foreign buyers seeking a property in Grindelwald can buy any apartment or chalet over 750,000Sfrs, whilst in Wengen you can only buy apartments. All these restrictions ensure the market is not flooded with foreign buyers and resorts don’t become overcrowded.

Once you’ve found a ski chalet that ticks all your boxes, your Swiss notary can navigate you through the paper work. They will require you to sign over a Power of Attorney so they can sign any papers and act on your behalf during the sale. As with any house purchase, various fees are incurred and each Canton requires a purchase fee, varying between 2.5% and 5% of the purchase price. Your notary will draw up the relevant documentation including the contract of sale, authorisation to purchase on your behalf if you are not resident in Switzerland and will liaise with the bank for registration of the required mortgage. Swiss banks will loan you 60% to 65% of the purchase price and interest is payable every six months.

Once you become the proud owner of your chalet you will have annual running costs to consider, including national and local taxes and a service charge for maintenance of the building, communal services such as water and electricity, structural insurance and maintenance of the roads (including snow clearing). Renting out your property either locally or through a larger tour operator in the UK can easily cover most of these costs, and a local agent can handle the day-to-day running of your chalet. Its also worth considering the tax benefits as there is no tax on rental income from a property owned by a foreigner unless you are resident in Switzerland and you can offset the interest on your loan and other expenses against tax in the UK.