Buying an apartment or house in Ticino involves several considerations, given the context of the region. Ticino is the southernmost canton in Switzerland, with a culture and atmosphere that reflect both Swiss and Italian influences.
For those wishing to take a major step with the purchase of a real estate object, it is essential to understand the different possibilities, modalities and implications, based on the requirements of local laws and regulations.
Three important considerations are presented below for those preparing to invest in real estate:
Swiss citizens, EU/EFTA citizens with B (residence) permits and C (domicile) permit holders are in principle unrestricted and can purchase any kind of real estate. Below are the steps towards purchase:
- Identification of property of interest;
- Preliminary appraisals, including tax appraisals;
- Negotiation and price definition with the seller;
- Possible bank financing (not necessarily needed for everyone)
- Notarial act
EU/EFTA foreigners without permission:
- in case the person does not have a B or C permit, the purchase of a secondary or vacation home would remain the only option to be considered;
- the purchase of a real estate object is subject to the “LAFE” Law that regulates the purchase of real estate in Switzerland by foreigners, requiring prior approval by cantonal authorities;
- it is advisable to obtain the support of an experienced local lawyer to navigate the “LAFE” approval process, which takes several months to complete;
- “LAFE” approval is usually granted for the purchase of holiday homes in designated tourist areas, with specific size characteristics (maximum 200 sq. m. net area and fund area not exceeding 1,000 sq. m.). Properties in other locations are subject to strict approval, often granted only to residents;
- you are typically not allowed to resell the property for 5 years or sublet it for commercial purposes throughout the year;
- you must live there for a minimum and maximum time during the year.
Non-EU/EFTA foreigners
For foreigners from countries outside the European Union/EFTA, purchasing property in Ticino requires an even more detailed process and greater attention to local laws and regulations.
There are two solutions:
- B permit application to purchase a primary residence. Citizens of non-EU (non-EU/EFTA) states must apply for an entry permit and wait abroad for a decision. It is recommended to rely on a reference trustee.
- Purchase of a secondary residence: the purchase is subject to the LAFE Act (see “EU/EFTA foreigners without permission”).
Notary and registration costs are usually approx. 2% of the value of the property and are normally borne by the buying party. On the other hand, Real Estate agency costs, thus the commission, are borne by the selling party.
