Can Foreigners Buy Property in Lugano, Switzerland?

Lugano, Switzerland, is a popular destination for foreigners seeking luxury and quality of life. With its stunning lakeside location, rich cultural offerings, and world-class healthcare, Lugano has become a favorite among expats and investors alike. One of the most common questions we hear from foreigners is whether they can purchase property in Lugano. In this article, we will explore the rules and regulations surrounding property ownership for non-EU citizens in Lugano and the surrounding region.

Property Ownership for Non-EU Citizens in Lugano

The Swiss Real Estate Act (Grundsteuergesetz) states that non-EU citizens may purchase property in Switzerland, but there are certain restrictions and conditions that must be followed. The primary requirement for non-EU citizens is that they must have a permanent residence permit or visa, allowing them to stay in Switzerland for an extended period of time.

In order to purchase property in Lugano, non-EU citizens must also comply with the following guidelines:

1. The total purchase price of the property must not exceed CHF 600,000 (approximately €600,000).

2. The purchase must be made in the name of an individual or a company, and not in the name of a trust or other legal entity.

3. The purchase must be made with a down payment of at least 30% of the purchase price.

4. The remainder of the purchase price must be financed by a Swiss bank or mortgage lender.

5. The property must be used as a primary residence by the owner.

6. The owner must have a valid residence permit or visa, allowing them to stay in Switzerland.

7. The owner must pay Swiss taxes on the property, including real estate taxes and income taxes.

Property Ownership for EU Citizens in Lugano

For EU citizens, property ownership rules are slightly different. They may purchase property in Lugano as long as they comply with the following guidelines:

1. The total purchase price of the property must not exceed €300,000.

2. The purchase must be made in the name of an individual or a company, and not in the name of a trust or other legal entity.

3. The purchase must be made with a down payment of at least 10% of the purchase price.

4. The remainder of the purchase price must be financed by a Swiss bank or mortgage lender.

5. The property must be used as a primary residence by the owner.

6. The owner must have a valid residence permit or visa, allowing them to stay in Switzerland.

7. The owner must pay Swiss taxes on the property, including real estate taxes and income taxes.

While non-EU citizens may purchase property in Lugano, there are certain restrictions and conditions that must be followed. By complying with these guidelines, non-EU citizens can enjoy the beautiful location, rich cultural offerings, and high quality of life that Lugano has to offer.

For more information on property ownership in Lugano, Switzerland, please contact a local real estate agent or lawyer for detailed advice.