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Old 05.09.2015, 00:06
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cash payments

Is it legal to sell a house and get part of the money in cash?
Can these money be deposited in a bank afterwards or there is a need for proofs of origin (where the money come from before this transaction?)
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Old 05.09.2015, 00:12
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Re: cash payments

Sure providing you declare it as such and it's mentioned on the acte de vente that the notary reads to you, no problem at all
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Old 05.09.2015, 00:30
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Re: cash payments

And what is the requirement for the buyer? Should he/she prove the money source? Do I care about it?
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Old 05.09.2015, 03:02
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Re: cash payments

Your bank must report suspicious money movements, and to me it looks a bit like the house buyer might be laundering money. The bank might be instructed to seize your money until you can explain yourself. I suggest you ask the buyer to pay the cash into your lawyer's bank account, then you are easily covered by the legality of the house sale and no explanations from you will be necessary.
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Old 06.09.2015, 11:23
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Re: cash payments

Thank you.
That seems to be a good idea. However it that case the buyer should provide documents prooving the origin of the money to the bank. If he has these docs he should be ok. (but if he has such docs why does he insist on paying in cash?)
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Old 06.09.2015, 11:51
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Re: cash payments

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Thank you.
That seems to be a good idea. However it that case the buyer should provide documents proving the origin of the money to the bank. If he has these docs he should be ok. But if he has such docs why does he insist on paying in cash?
Because perhaps the money is the profit from selling drugs in Switzerland?

Tell the buyer he must pay into the Notary's bank account (the Lawyer for the house sale) and not your bank account. Then you will not have to answer any questions, or risk your money being confiscated. Are you sure this buyer is suitable for you?
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Old 06.09.2015, 11:54
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Re: cash payments

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Thank you.
That seems to be a good idea. However it that case the buyer should provide documents prooving the origin of the money to the bank. If he has these docs he should be ok. (but if he has such docs why does he insist on paying in cash?)
Confidentially is the reason people want to pay in cash, probably kept the money in a numbed account. The only way to prevent a trail is cash transactions.

Probably best to stay clear unless we are talking small change. I suspect he wants a lower price on the house for CGT reasons, been popular I'm France for decades.
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Old 07.09.2015, 13:21
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Re: cash payments

Does your buyer wear a black pork pie hat and call himself Herr Heisenberg?


Do be aware that since Swiss banks have begun to distance themselves from dodgy assets reports of money laundering via Swiss real estate seem to crop up more often. Are these stories true? Who knows. But as you don't want to lose your money by becoming an unwitting accomplice, eyes wide open.

The first thing you should do is to speak with your bank manager about the transaction. He/she should be able to discuss compliance concerns.

In addition to caution money laundering, to be on the safe side you probably should also consider counterfeiting.

If you choose to go through with this, you and the buyer with his briefcase full of purple Chuffs should meet at your bank. Each note should be examined and authenticated. Then put into an escrow account.

When KYC and counterfeiting concerns have been put to rest then you proceed with the sale.

---

Yes, many Swiss still think nothing of paying cash for big ticket items. But pulling the price of a house out of the mattress raises eyebrows today, even in Switzerland.
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Old 07.09.2015, 14:15
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Re: cash payments

Thank you all for your valuable advice.
I will check whether the buyer is capable of proving the "purity" of his money and then proceed.

Else, I will wait for the next one!
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Old 07.09.2015, 17:24
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Re: cash payments

Probably not only does the seller want to receive a part of the sale price in cash, but he also wants that the 'official' sale price is reduced by the amount of cash paid.

That leaves the buyer with 2 problems:
1. Dealing with a difficult to explain reduction in his assets.
2. The purchase price of the property will be artificially lowered and when sold again, this will appear as a gain, which he [the original buyer] will have to pay tax on.

The seller has also the problem of dealing with a difficult to explain wad of cash or increase in his assets.

Incidentally, in Switzerland there are plans to limit cash payments to CHF 100'000. (Ger: ) http://www.nzz.ch/schweiz/bargeld-re...ehr-1.18261700
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Old 07.09.2015, 18:45
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Re: cash payments

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That leaves the buyer with 2 problems:
1. Dealing with a difficult to explain reduction in his assets.
There is nothing to explain, it's not an issue. Anyone can blow money at a Casino, many people do.......
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