Hello Expats
Who we help · Property buyers

Buying a home in Switzerland as an expat

Buying in Switzerland is less about the asking price and more about meeting two bank tests - equity and affordability - and choosing a mortgage structure that still makes sense in ten years. We walk you through the decision before you sign anything.

Book a free buyer consultationOr ask a quick question →
Independent Free first call Swiss-regulated
In short

To buy a primary home in Switzerland you generally need at least 20% equity (of which at least 10% must come from outside your pillar 2), and a Swiss bank will stress-test your affordability at a notional interest rate of around 5% plus 1% maintenance plus amortisation - aiming for a total housing cost below roughly 33% of gross income. Mortgage choice is typically SARON (variable) or a fixed term of 2-10 years, and second-mortgage amortisation is often arranged indirectly via pillar 3a for the tax saving. As of 2025, owner-occupied homes are taxed on an imputed rental value (Eigenmietwert), and permit type plus Lex Koller determine what you can buy and where.

What you face

What expat home-buyers in Switzerland have to figure out

  1. 01

    The 20% equity rule (and the 10% hard equity)

    Minimum 20% own funds, of which at least 10% must come from cash, securities or pillar 3a - not from pillar 2. Pillar-2 use is allowed for the remaining 10% but reduces pension cover and triggers withdrawal tax.

  2. 02

    Affordability at a notional 5%

    Banks stress-test your ability to pay the mortgage at around 5% interest plus 1% maintenance plus amortisation - total housing cost below roughly 33% of gross income. This is the test that most often blocks a deal, not the actual current rate.

  3. 03

    Fixed vs SARON

    SARON mortgages move with the Swiss money-market rate; fixed mortgages (2-10 years) lock the rate. The right choice depends on your time horizon, risk tolerance and how much certainty you want in your monthly budget.

  4. 04

    Indirect amortisation via pillar 3a

    Rather than paying down the second mortgage directly, many owners pay into pillar 3a, deduct the contributions and use the 3a capital later to amortise. Done right, this preserves the mortgage interest deduction longer and lowers lifetime tax.

  5. 05

    Imputed rental value (Eigenmietwert)

    Owner-occupied homes are taxed on a notional rental income (Eigenmietwert) added to taxable income, against which mortgage interest and maintenance costs are deductible. A reform has been discussed for years; until enacted, the current system still applies.

  6. 06

    Permit type and Lex Koller

    Swiss citizens, C-permit holders and EU/EFTA B-permit holders can normally buy a primary residence freely. Non-EU B-permit holders need their primary residence and face restrictions on second homes; non-resident foreigners are largely blocked from residential purchase under Lex Koller.

  7. 07

    Wealth tax, second pillar and exit plans

    Property changes your wealth-tax picture, the use of pillar 2 funds creates a future repayment question, and a sale or move abroad triggers withdrawal-tax repayment plus capital-gains tax on the property at the cantonal rate. All of this is best modelled before purchase.

Free first call

Get a second opinion before you sign

In a 30-minute call we run the equity test, the affordability stress test and the fixed-vs-SARON question - then tell you whether the deal you're looking at actually works.

Book a free buyer consultation →
How we help

How we help expat property buyers

Finance & mortgage

Independent affordability and equity check, fixed vs SARON modelling, lender comparison across Swiss banks and insurance providers. We are not tied to any bank.

Plan your Swiss mortgage independently

Taxes

Eigenmietwert, mortgage-interest and maintenance deductions, treatment of pillar-2 withdrawal and sale of the property - mapped to your canton.

Plan tax around a Swiss property purchase

Investments & pension

Indirect amortisation via pillar 3a, pillar-2 buy-in vs property use, and how a large property concentration changes the rest of your investment plan.

Coordinate property, pillar 3a and investments

Health insurance

A practical review of household KVG / LAMal premium and supplementary cover - useful when monthly budget is now anchored by a mortgage.

Review household health cover before buying
Why buyers work with us
20% / 10%
Minimum total / hard equity (as of 2025)
~5%
Notional affordability rate Swiss banks use
100%
Independent - no in-house products or brokerage
CHF 0
First consultation - no obligation
How we work

How we work with buyers

A clear three-step process designed to fit into a real property search.

1 · Free discovery call

30 minutes on video. We map your household income, available equity, permit, the canton you're buying in and your time horizon.

2 · Your buyer roadmap

A written plan covering equity strategy, affordability, fixed vs SARON, amortisation route, tax impact and a clear pre-offer checklist.

3 · Implementation, together

We compare lender offers, coordinate with your notary, and stay involved through to refinance or sale years down the line.

Tools

Run the numbers yourself

Calculators are estimates for planning, not formal tax or investment advice.

Mortgage check

See indicatively what a Swiss bank would lend you based on income, equity and notional 5% affordability.

Open calculator

Swiss salary calculator

Your gross-to-net is the input to any affordability calculation - run it for the household before talking to a bank.

Open calculator →

Tax estimator

Sense-check how Eigenmietwert, interest deductions and pillar-2 withdrawal change your tax bill.

Open calculator →

Pension gap

Quantify the dent in retirement income if you fund part of the purchase from your pillar 2.

Open calculator →
Ask us anything

Ask a buyer-specific question

Type your question about equity, affordability, SARON vs fixed or Eigenmietwert. A real Hello Expats advisor reads every message and replies personally - usually within one working day.

FAQ

Property questions we hear most often

How much equity do I really need to buy in Switzerland?
At least 20% of the purchase price as own funds, of which at least 10% must come from outside your pillar 2 - i.e. cash, securities, pillar 3a, a gift or inheritance. The remaining 10% can be drawn from pillar 2, but this reduces your retirement and risk cover and triggers a one-off withdrawal tax. The bank lends the other 80% as the mortgage, split into a first and second mortgage.
What is the affordability test and why does it use 5%?
Swiss banks stress-test affordability at a notional interest rate (typically around 5% as of 2025) plus around 1% for maintenance plus amortisation of the second mortgage. The total housing cost should normally stay below about 33% of your gross household income. The notional rate is deliberately conservative so that you can still afford the home if rates rise sharply.
Should I take a fixed mortgage or SARON?
SARON mortgages follow the Swiss money-market rate and move every quarter - cheaper when rates are low, more expensive (and uncertain) when they rise. Fixed terms (often 2-10 years) buy you certainty at a small premium. The right answer depends on your budget sensitivity to rate moves, your planned holding period and your appetite for surprise. A blended structure across multiple tranches is also common.
What is indirect amortisation via pillar 3a?
Instead of paying down the second mortgage directly, you pay into a pillar 3a account each year and pledge it to the bank. You keep deducting your full mortgage interest, you deduct the 3a contribution and you grow capital tax-deferred. Later, the 3a balance is used to amortise. Over a typical mortgage life, the structure can save several percent of total cost vs direct amortisation.
What is Eigenmietwert and how does it affect my tax?
As an owner-occupier in Switzerland you have to add an imputed rental value (Eigenmietwert) - typically around 60-70% of a realistic market rent - to your taxable income, against which you can deduct mortgage interest, maintenance and (under some cantons) energy-efficiency investments. The system has been the subject of reform proposals for years; until any change is enacted, the current rules continue to apply.
Can I buy property on a B permit?
EU/EFTA nationals with a B permit can normally buy a primary residence in Switzerland without restriction. Non-EU B-permit holders can buy their own primary residence but face restrictions on second or holiday homes under Lex Koller. Non-resident foreigners are largely blocked from residential purchases. C-permit holders and Swiss citizens have full access.
Related guides

Keep reading

Next step

Let's pressure-test your purchase before you sign

A 30-minute call with an independent Hello Expats advisor - no obligation, no fees. We model equity, affordability and structure for the specific home you have in mind.

Book a free buyer consultation →