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Old 16.01.2020, 15:23
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Renting Swiss Owned Property when abroad

Hi all,

We are considering renting our swiss owned property due to work relocation rather than selling it.

I guess the first question would be whether keeping the property for the foreseeable future makes sense in Switzerland? as the prices tend to be pretty stable! or better to sell in the short to medium term

I was wondering if any EF members have been in a similar situation and successfully rented out their property whilst moving abroad. What I am keen to understand is if there is any impact on the mortgage setup with the bank due to potential permit residence status change once we leave CH? Currently we are on a C permit.

Plus when inquiring with rental agencies, can you advise what the typical service here is 1) Fully managed approximate commission or 2) Tenant finding only % commission.

Any other tips or past experience from other members are well appreciated.

Cheers
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Old 04.06.2020, 12:03
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Re: Renting Swiss Owned Property when abroad

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Hi all,

We are considering renting our swiss owned property due to work relocation rather than selling it.

I guess the first question would be whether keeping the property for the foreseeable future makes sense in Switzerland? as the prices tend to be pretty stable! or better to sell in the short to medium term

I was wondering if any EF members have been in a similar situation and successfully rented out their property whilst moving abroad. What I am keen to understand is if there is any impact on the mortgage setup with the bank due to potential permit residence status change once we leave CH? Currently we are on a C permit.

Plus when inquiring with rental agencies, can you advise what the typical service here is 1) Fully managed approximate commission or 2) Tenant finding only % commission.

Any other tips or past experience from other members are well appreciated.

Cheers
Hi there, did you manage to find out what's possible as far as the mortgage structure? I know in the past the bank has confirmed to us that they didn't care where we lived (i.e. in or out of CH) so long as they received the loan repayments. However, and I haven't found out this bit, the indirect amortisation (via life insurance) is not available to non-residents. And this is an interesting sticking point. If you are forced to restructure the loan to have a direct amortisation, then the bank may force to pay 40% deposit (instead of 20% for primary residence) as by definition the property stops being your primary residency.
Another point, what if you suspend your C-permit for up to 4 years, how is this viewed by the bank/authorities? This scenario vs you leave permanently (in order to collect your pillar 2), where you don't intend to return, but would like to keep your property and rent it.
Would be good to hear what you have managed to find out. Thanks
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Old 04.06.2020, 12:07
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Re: Renting Swiss Owned Property when abroad

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spend your C-permit for up to 4 years, how is this viewed by the bank/authorities? This scenario vs you leave permanently (in order to collect your pillar 2), where you don't intend to return, but would like to keep your property and rent it.
Would be good to hear what you have managed to find out. Thanks
Very limited reasons to suspend a 'C' permit, just getting a job abroad does not count. As far as collecting a pillar 2 you just need a leaving cert, you will get this regardless of if you apply to put the permit on hold or not.
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Old 04.06.2020, 13:40
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Re: Renting Swiss Owned Property when abroad

One watchout is on the tax you need to pay.

Switzerland will ask for your global income to determine the tax rate to apply to the rent. It will not simply be the tax rate associated with the rent as income in Switzerland.

So factor this in when making the calculations.

K
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