Buying an apartment in Geneva
First purchase or investment: what you need to know before buying an apartment or a house in Geneva.
Equity
Swiss banks generally require at least 20% of the price in equity, of which at least half (10% of the price) must not come from the second pillar pension fund. The rest is financed by a mortgage.
Affordability
To grant a loan, the bank calculates your costs with a theoretical interest rate, higher than market rates, plus amortisation and maintenance costs. These costs should in principle not exceed one third of your gross income.
Purchase costs
On top of the price come registration duties, land registry fees, notary fees and the costs of the mortgage note. In Geneva, allow roughly 5% of the price as a guide; the notary will give you the exact amount.
Buying in co-ownership (PPE)
In co-ownership, you own your apartment and co-own the common parts. Before buying, read the co-ownership regulations, recent minutes of owners’ meetings, the budget of charges and the renovation fund balance: they reveal upcoming works.
Who can buy?
People living abroad are strictly limited by the federal law known as the “Lex Koller” (LFAIE). EU and EFTA nationals living in Switzerland buy on the same terms as Swiss citizens.
In Geneva, some new homes built in development zones are subject to price controls and an obligation to live in them: the listing and the notary will tell you.
From offer to deed
After the viewing you make a written offer. A property sale must be concluded by notarial deed (art. 216 of the Swiss Code of Obligations), then entered in the land register. Régie 373 supports you through to signing and the handover of the keys.