How Much Cash Do You Need to Buy Property in Switzerland?

The minimum equity requirement

Swiss banking regulations require buyers to contribute a minimum of 20 percent of the purchase price from their own funds (fonds propres). This means the maximum loan-to-value (LTV) ratio for a Swiss mortgage is 80 percent. For a CHF 2 million property, the minimum equity contribution is CHF 400,000.

Of the 20 percent equity requirement, at least 10 percent must come from "hard" equity — cash savings, securities or other liquid assets. The remaining 10 percent can come from pension fund assets (deuxième pilier — 2nd pillar) under certain conditions.

What counts as equity

Hard equity (at least 10% of purchase price) can come from: cash savings in bank accounts; securities (shares, bonds, funds) that can be liquidated; proceeds from the sale of another property; gifts or inheritance (subject to documentation); and other liquid assets.

Pension fund assets (2nd pillar) can be used for the remaining 10 percent of the equity requirement, but only for the purchase of a primary residence — not for a secondary residence or holiday home. Non-resident foreign buyers typically cannot use Swiss pension fund assets.

Acquisition costs on top of equity

The 20 percent equity requirement covers only the purchase price. Acquisition costs — transfer tax, notary fees, land register fees — must be paid in addition to the equity contribution and cannot be financed with a mortgage. In Vaud, acquisition costs are approximately 2.5 to 3 percent of the purchase price.

This means that buyers effectively need to have approximately 22 to 23 percent of the purchase price available in cash: 20 percent for the equity contribution plus 2.5 to 3 percent for acquisition costs. For a CHF 2 million property, this amounts to approximately CHF 440,000 to CHF 460,000 in cash.

Higher equity for non-residents and holiday homes

For non-resident foreign buyers and for the purchase of holiday homes (secondary residences), Swiss banks typically require higher equity — often 30 to 40 percent of the purchase price. This reflects the higher risk profile of these transactions from the bank's perspective.

Buyers in this category should plan for a minimum equity contribution of 30 percent of the purchase price plus acquisition costs — approximately 33 percent of the purchase price in total cash required.

Key points

• Minimum equity: 20% of purchase price (Swiss residents, primary residence)
• At least 10% must be "hard" equity — cash, securities, liquid assets
• Remaining 10% can be pension fund (2nd pillar) for primary residence only
• Acquisition costs (~2.5–3%) payable in cash on top of equity
• Non-residents / holiday homes: typically 30–40% equity required