Does it make sense to buy property abroad?
The purchase of a property abroad “can” prove to be an excellent capital investment. In order to minimise potential risks, it is essential that you obtain detailed information about the process beforehand.
In order to make the purchase of real estate abroad a success, you should pay attention to a few points. As always, weigh up the pros and cons carefully and do not make any hasty decisions. This already reduces the risks considerably 😊
Selection of the property:
A foreign property should always be chosen with care. That is:
- how does it perform in terms of location and infrastructure?
what does an expert say about the building fabric, technology and fittings?
requirements and standards differ from country to country.
is the price reasonable for what you are offered?
Swiss banks do not normally finance properties outside Switzerland. Therefore, a local bank is usually the best way to finance a foreign property. The financing offers should be compared very well!
In principle, real estate must be taxed in the place where it is located. In Switzerland, the asset value and the income from a foreign property are only taxed at the rate that applies. This means that they can adjust the owner’s tax rate upwards, but are not directly taxed themselves.
Notary, tax, real estate agent – you must expect these additional costs
In addition to the actual purchase price, further costs are often incurred when buying real estate:
- Notary and court fees
- Land transfer tax (e.g. Germany)
- Brokerage commissions