Buying a house: non-resident partial ownership

Accomodation, House and Garden
1
I have a C permit and am thinking of buying a home in Switzerland. Since I don't have enough money to purchase one outright, my father is willing to be a part-owner and put down a corresponding portion of the cost-- provided that he is listed as a part-owner. But he is not a Swiss resident and lives in another country. Would such an arrangement be permitted, given his residence status?

2

Might need authorisation from the Swiss authorities.

" Other foreign nationals living abroad
Apart from cross-border commuters, foreign nationals living outside of Switzerland require authorisation to buy property."

https://www.ch.ch/en/housing/homeown…-authorisation

Also I expect any bank who provides the mortgage would have to agree to him being a part-owner as well.

3
I would never do part-ownership with family. Different opinions WRT the real estate are bound to affect the relationship as a whole - who decides on joint investments, like a new roof or heating? And how do you handle the dissolution of that joint ownership, do you have the right to buy him out, and at what price?

Would it not be possible instead to get credit from dad, like half of the 20% downpayment? With payback over time, ideally following a predetermined schedule?

Whatever you do, make sure you agree on the applicable currency, longer term the CHF is bound to appreciate against the one "back home" but the interest rate will be lower in CHF. Also, ownership might be much more tricky tax-wise than a credit.

4
As Permis C and EU/EFTA have the same rights the nationality of the father is Key.

What tax implication are there for your father in his home country? Something he should check.

5
This is one of those things that can turn into a disaster when disputes arise. But it can also be a very good management of the collective wealth of the family and a possible way for the whole family to advance.

In any case, if you do it, be sure to draw up the contract between the parties in detail and very clearly, and then get it checked by a lawyer.

Also consider the implications for inheritance (in both directions!) and how the death of your father, or of you yourself, would influence all other heirs such as spouses, siblings, parents and children, in accordance with the inheritance laws in both countries. In fact, such a joint ownership scheme should be done only in conjunction with everyone updating their Last Will and Testament.

6

Wrong. All foreigners which are not Swiss residents are equally subject to the Lex Koller. No special privileges for EU/EFTA nationals https://www.fedlex.admin.ch/eli/cc/1…8_1148_1148/en

Just as an example: If the father lives in France, than the property could be subject to double inheritance tax!