BUYING GUIDE
The table below shows the current buying and disposal costs in The Alps, with some further narrative about each market:
* Subject to sliding scale. Plus VAT as applicable.
** For new build, buying costs are circa 2-3%
^ For the canton of Valais. Other cantons will vary
Switzerland
Non-Swiss residents may own residential property in Switzerland, subject to restrictions.
The legal paperwork is handled by the notary, who, as in France, works on behalf of the buyer and seller.
Non-Swiss residents acquiring a home in Switzerland must apply for a foreign buyer’s permit. Non-Swiss residents may not own more than one residential property.
- Signature of a convention agreement. This specifies the buyer and seller, the property that is being purchased, conditions of purchase and in some case, a nominal deposit.
- If the buyer requires a mortgage finance, a mortgage prequalification questionnaire is completed and submitted to the lender.
- The notary makes an application on behalf of the buyer to the Registre Fonciere for a foreign buyer’s permit.
- As soon as the permit is authorised (normally 4-6 weeks), the notary will prepare the deed of sale and request the next stage payment (for new build property) or the balance of the purchase price (for resale property).
- Power of attorney may be given to a solicitor representing the buyer to sign on their behalf.
The Permit “B”
A “B” permit (permis de séjour) is an annual residency permit. It allows 180 days or more to be spent in Switzerland per annum. Such permits are ordinarily granted to those who have a permanent work contract in Switzerland (of more than 12 months) or those applying to retire in the country.
Permit “C”
A “C” permit is a permanent residency permit. Depending on citizenship, the “C” Permit may be applied for after 5 or 10 years of residence on a “B” permit.
France
- The “Compromis de vente”
The buyer will sign a preliminary contract, or “compromis de vente”. This contract is legally binding. A deposit of between 5% and 10% is paid by the buyer into the notary’s escrow account.
In certain circumstances, the buyer may withdraw from the contract without penalty. The most common “clause suspensive” is the right to withdraw if a mortgage offer is not forthcoming. The buyer will receive a countersigned copy of the contract, with notification of their right to withdraw within 10 days. After this “cooling-off period”, the contract becomes binding. - The “Acte de vente”
When the relevant searches are completed, the purchaser will sign the deed of sale (“Acte de vente”). The purchaser should take legal advice or ask the notaire for clarification on any points.
The notaire’s fees (including stamp duty and land registration fees) will amount to around 3-4% of the purchase price for a new property and 7-8% for a resale property.
Austria
An EU citizen is legally entitled to own a property in Austria. Specific rules vary from state to state. All titles are freehold.
The legal documents are handled by a registered notary who, in most cases, works on behalf of vendor and buyer.
The first step for a buyer is to sign a “Kaufanbot”. This is a legally binding, pre-sales contract. A 10% deposit is paid to the notary and held on escrow. The balance of the purchase monies is payable in accordance with stage payments (for new build) or on execution of the sales and purchase contract (for re-sales).
It is possible to bypass the Kaufanbot and proceed straight to contract. This is drawn up by the solicitor and signed in front of the notary.
If the purchaser is in Austria, then this can be done in front of the notary, or alternatively this can be signed and witnessed at any of the Austrian Embassy or Austrian Consulates across the world.
The contract must also then be signed by the owner/developer. When the purchase contract is countersigned then the title deeds are prepared by the notary and entered in the Land Registry.
For a new build, the balance of the purchase monies are released to the developer upon certification from the architect and approval from the solicitor and Austrian government, through the various construction stages.
Italy
The buying process has three main steps:
- Once the price is agreed, a written proposal of purchase is submitted – the proposta d’acquisto. A small deposit is paid by the buyer as a sign of their intent, and is held in escrow until the preliminary contract is signed. This deposit is deductible from the overall price.
- On acceptance of the offer, the notary prepares the preliminary sale contract, compromesso or contratto preliminare di vendita. This is legally binding and signed by both parties. It gives a full description of the property and details of sale. It specifies the completion date and the deposit paid which ranges between 10 and 30 percent of the purchase price. The preliminary agreement can be made conditional on surveys or finance.
- The final contract or rogito is signed in front of the notary by both buyer and seller, or via power of attorney. The outstanding balance, plus all fees and taxes are paid at this point. The notary will then issue the deeds and register them at the Land Registry.
Please note that these are intended as guides only, do not constitute tax or legal advice and professional advice in both cases is highly recommend.