Renting out property that was purchased while non-EU/B permit

Although just in the exploratory stage at the moment, we are considering buying a flat in the Canton in which we reside (Neuchâtel). We are both Permit B, non-EU. Our current plan is to be in Switzerland for the medium term (2-5 yrs), and possibly longer term. However, there is a non-negligible probability that we leave Switzerland before ever obtaining a C permit (letalone citizenship...).

What is clear is that: a) we have the right to purchase a primary residence here and b) if we move elsewhere in Switzerland, we can keep the property and rent it out to someone else.

What is not clear, and what might be the biggest deciding factor in whether we eventually purchase something or not, is whether or not we would be able to rent our property out (on an annual basis, via an agency), in the event we leave Switzerland.

I have read previous threads about this subject and gather that this might be a cantonal affair (and Permit C vs. B and EU vs. non-EU may come into play). Unfortunately, I have found nothing conclusive online about this so am looking to the experts and cynics of this forum for tips. Which type of cantonal office would one approach for a conclusive answer for this type of question?

Of course you would. You’re no longer a resident so why should the Swiss government care what you do with your property? So long as all the relevant taxes, etc, are paid you’d be fine.

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It has become a little expensive (as the blender part seems to be stainless steel too now, while mine is plastic. It's the kind of thing you have for ever though and takes up hardly any space.

With the wire whip part you get your cream done in no time. And I use it all the time for anything that needs to get fluffy.

Braun is a well known brand (mine is Braun too) but if you google a bit you might get a cheaper one.

That's a handsome hand mixer...

er.. what ?

To the OP.. as well as permit / residency issues... be aware that if you want to leave and rent out your property your mortgage lender will tell you how that will effect how much equity you have to provide (e.g. it might move from 1/3 to 1/2)

Wrong thread?

https://www.englishforum.ch/daily-li…ped-cream.html

I know when we purchased our land to build a house the Gemeinde made a point of making sure we understood that although I had a C-permit, my partner only had a B and therefore we would not be able to rent the property.

Not sure if this rule is just for our Kanton (Zurich, A.a.A) or for all of Switzerland.

Very interesting. Yes, this is the kind of situation I was reading about. It seems like these are cantonal regulations implemented by the communes (Gemeinden).

To clarify what Medea indicated earlier, there are no federal regulations relating to the situation in question, but there are cantonal ones.

I actually don't agree with Medea! Only EU nationals or People with a C Permit are allowed to rent out their property if they don't live in Switzerland anymore. This is called Lex Koller. See https://www.bj.admin.ch/bj/en/home/w...eckerwerb.html and especially the guidlines https://www.bj.admin.ch/dam/data/bj/...werb/lex-e.pdf

They state that you are allowed to purchase with a B Permit and you are allowed to rent it out if you continue to live in Switzerland but otherwise you will need prior authorisation from the cantonal authority.

OP please check the Guidelines in the link provided. You will Need approval so no, that won't be easy and I would therefore not buy. Even more so because if you Need to sell once you move you will pay a Penalty because you only kept the appartment for a short period of time. Please check the laws!

If you don't live in CH you will not have a Swiss permit of any description.

Thank you for this, irish_temptation, now we are getting somewhere ...

Section 6b states...

Foreigners domiciled in Switzerland who do not hold a C settlement permit (see 7a) may

purchase a dwelling (single-family house or owner-occupied) in their actual place of residence

(main residence, art. 2, para 2, subpara b FL, art. 5 and 18a, para 2 OFL; see the

second-last section of 5a for a definition of actual domicile) without having to obtain authorisation.

The same applies to building land provided construction work on the accommodation

commences within one year. As nationals of EC and EFTA Member States domiciled in

Switzerland are not considered as persons abroad (see 5a), the articles on main residences

do not apply to them. They apply only to nationals of other foreign countries who

are domiciled in Switzerland (in general with a B residence permit, eventually also persons

working for embassies, consulates or international organisations and holding an identification

card from the Swiss Department of Foreign Affairs, or persons with a service certificate

establishing them as an employee of a foreign rail, postal or customs administration

service based in Switzerland). The buyer must occupy the dwelling himself. He cannot rent

it out even in part.

The purchase of a main residence is exempted from the authorisation requirement only if

bought in the buyer’s own name (art. 8 OFL). The living area may be of any size, but only

one residential unit may be acquired. There are no restrictions on the real estate surface

area in itself, but it cannot be so large for the real estate acquisition or even part of it to be

regarded as being purely for investment purposes. This is why the Land Registry does not

usually enter a transaction concerning an area of over 3,000 m2

in the Register immediately

but refers the buyer to the authorisation body. This body must then decide whether the

acquisition can still be considered as exempt from authorisation or whether it cannot be

allowed on the grounds that it is purely for investment purposes.

If the buyer changes his place of domicile, he need not sell the dwelling and can dispose of

it as he sees fit. He may continue to use it as a secondary or holiday residence or rent it to

third parties. He may also purchase another home in his new place of domicile without

having to sell the first one. However, a buyer who had no intention of living in that home

permanently is in violation of the law, especially when he changes his place of domicile for

the sole purpose of being able to purchase several dwellings without requiring authorisation.

In such cases, the appropriate authorities can invoke authorisation requirements

retroactively (art. 25, para 1bis, FL) and can order the reinstatement of the original legal

situation (art. 27 FL).

There is nothing in there stating that the new place of domicile needs to be in Switzerland. This would lead me to believe that in the situation outlined in the original question, a Permit B, non-EU homeowner would indeed have the right to rent out his/her property once he/she has left Switzerland.

That said, there may be cantonal restrictions on this, which is what I am worried about. I have emailed someone in my commune's gov't for clarification as I have found nothing on the cantonal legislation concerning this.

I had the same doubt and I recently signed of the purchase contract of our apartment. During the session, the notary told us that if we move out from CH we can rent our property. I am in Vaud BTW.

Absolutely!

I was as surprised as you guys were when I saw that post of mine in this thread just now.

So do I delete it or will people think Medea has a screw loose if my fauxpas is missing?

Interesting... I was told that as non resident we could rent our flat out for holiday rentals but not for someone who wanted to rent it long term. Canton VD too!

How is the property designated? Holiday home or main residence?

I would assume any commune would be happy with any extra fully rented and occupied property. An extra tax payer plus a better main/holiday home ratio.

But as an owner be careful, the other way round might not be possible as the number of holiday homes in a commune is restricted to 20%.

https://www.uvek.admin.ch/uvek/fr/ho...condaires.html

But in this thread https://www.englishforum.ch/finance-...de-sejour.html , someone mentioned that foreigners in Valais may not rent out properties full time. Unfortunately I never further challenged that claim.