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Old 17.05.2019, 14:16
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Holiday Apartment Purchase

Hi All

We are looking to purchase a holiday apartment for our own use in Switzerland (not to be rented out) and we are UK residents. We have been in touch with the local Gemeinde and the local Regierungsstatthalteramt with regards to permissions, restrictions and taxes.

We are aware we will need to pay the Nebenkosten, Liegenschaftssteuer, Schwellentelle and Kurtaxen along with any utility bills (electric, water) and house insurance.

We are also aware we would need things like the Universal License for TV / Radio. Is there anything else we need to be aware of or need to consider?

Any information would be much appreciated.
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Old 17.05.2019, 14:33
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Re: Holiday Apartment Purchase

Are you paying cash or using a mortgage?


Swiss banks may be particular about mortgages so make sure to read the small print. For example if the appartment depreciates in value they may require that you repay part of the mortgage to protect their risk exposure.


Also make sure that your bank actually allows you to have an account as a non Swiss / non resident. I understand some banks are a bit difficult in that department. You will probably need an account to pay the various bills by direct debit.
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Old 17.05.2019, 14:57
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Re: Holiday Apartment Purchase

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Are you paying cash or using a mortgage?


Swiss banks may be particular about mortgages so make sure to read the small print. For example if the appartment depreciates in value they may require that you repay part of the mortgage to protect their risk exposure.


Also make sure that your bank actually allows you to have an account as a non Swiss / non resident. I understand some banks are a bit difficult in that department. You will probably need an account to pay the various bills by direct debit.
Thanks for the response. It would be a cash purchase, no mortgage involved.

We would assume a bank account would be needed for the bills. I had a quick look and I think most of the larger banks should be fine with us.
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Old 17.05.2019, 16:32
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Re: Holiday Apartment Purchase

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Thanks for the response. It would be a cash purchase, no mortgage involved.

We would assume a bank account would be needed for the bills. I had a quick look and I think most of the larger banks should be fine with us.



Why ? Use Revolut, far more economical for your situation
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Old 17.05.2019, 16:41
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Re: Holiday Apartment Purchase

You should be aware of capital gains tax (Grundstuckgeweinsteuer) on property sales when that time comes and if there's a profit...
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Old 17.05.2019, 16:46
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Re: Holiday Apartment Purchase

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Why ? Use Revolut, far more economical for your situation
Would that work for paying monthly bills? I would have assumed you would need to pay by direct debit from a bank account.
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Old Yesterday, 22:06
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Re: Holiday Apartment Purchase

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Would that work for paying monthly bills? I would have assumed you would need to pay by direct debit from a bank account.
I don't think we pay any of our utility bills by DD. The bill comes (in the post or electronically), we pay it online.

DD do exist in Switzerland - our health insurance is on one so the co-pay can be collected automatically, just doesn't seem to be a typical way to manage utilities.

Check what the Nebenkosten includes - often water and electricity are in there, with an annual "true-up" of actual bills vs the monthly / quarterly NK payments.

Other costs:
1) medical coverage: make sure you have travel insurance appropriate for the amount of time / frequency you plan to be in CH. And if you will be in the mountains for hiking / winter sports, take out REGA membership (they'll send a medical helicopter as needed to scrape you up after an accident ....bargain at CHF 30 per year for a adult, CHF 70 for a family)

2) will you drive here? or arrive by plane / train? might be worth getting a Halbtax if using trains a lot. It's an annual card at around CHF 180 giving zou 50% off public transport fares
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Old Today, 00:21
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Re: Holiday Apartment Purchase

In an apartment you may be required to make an annual contribution to the buildings maintenance fund (Erneuerungsfond). It would be worth ascertaining how much that would be.
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Old Today, 07:09
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Re: Holiday Apartment Purchase

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In an apartment you may be required to make an annual contribution to the buildings maintenance fund (Erneuerungsfond). It would be worth ascertaining how much that would be.
Good point. And check what already has been paid in (and if the previous owner paid and on time) and if any repairs are planned for the future.
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Old Today, 08:57
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Re: Holiday Apartment Purchase

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In an apartment you may be required to make an annual contribution to the buildings maintenance fund (Erneuerungsfond). It would be worth ascertaining how much that would be.
This has a strong effect on the price especially on older apartments. There are a few apartments built in the 70s coming on to the market now as the original owners can't or don't want to put in the money to upgrade. Items to check are heating, windows, roof insulation and facade, most of these are at the end of their serviceable life with increasing energy costs as a result rather than actually creating problems. Eyes wide open and there are bargains to be had as renovations can be expensive if you do it in the traditional Swiss way.
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Old Today, 09:06
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Re: Holiday Apartment Purchase

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Would that work for paying monthly bills? I would have assumed you would need to pay by direct debit from a bank account.



The only obligation you have is to pay the bill, how you do it is up to you, sure DD is easiest but you can also pay by a simple bank transfer if you want to.
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