Institutional beneficiaries are permitted to acquire real estate in Switzerland for official purposes. The FDFA's Directorate of International Law (DIL) is responsible for issuing decisions on any such acquisitions. For staff of diplomatic missions and consular posts headed by a career consular officer, there are different types of acquisition.
Acquisition of land and buildings by sending states for official purposes
Since 1 January 2008, real estate acquisition by institutional beneficiaries – which includes diplomatic missions and consular posts headed by a career consular officer – has been governed by:
Section 3 of the Federal Act on the Privileges, Immunities and Facilities and the Financial Subsidies granted by Switzerland as a Host State (Host State Act, HSA) and
Section 5 of the Ordinance to the Federal Act on the Privileges, Immunities and Facilities and the Financial Subsidies granted by Switzerland as a Host State (Host State Ordinance, HSO).
The FDFA's Directorate of International Law (DIL) is responsible for issuing decisions on the acquisition of land and buildings by institutional beneficiaries. To this end, the DIL consults the canton in question to verify whether the buyer constitutes an institutional beneficiary and whether the proposed acquisition is for official purposes. The requested property must also reflect actual needs and factor in all assets previously acquired by the institutional beneficiary. In addition, all required authorisations from the competent authorities – particularly safety and building permits – must be available.
The acquisition of land and buildings means any acquisition of a title to a building, land, a right of habitation or a usufruct over property, or the acquisition of any other rights which confer upon their holder equivalent status to that of owner, such as a long-term lease with non-standard terms.
If there is a change in use, this is deemed an acquisition and therefore also requires permission from the FDFA. Land and buildings for official purposes are defined as buildings or parts of buildings together with the curtilage thereof used for the purpose of carrying out the official activities of the institutional beneficiary.
Sending states must address all acquisition requests to the FDFA (Directorate of International Law, Federal Palace North Wing, Kochergasse 10, 3003 Bern) including a copy to the competent cantonal authority (for example in Bern to: Beco Berner Wirtschaft, Marktaufsicht, Laupenstrasse 22, 3011 Bern).
As stipulated in Article 25 of the HSO, the application must contain the following information:
the name and address of the applicant, their representative, if any, and the transferor of the property, as well as the address of the property;
the draft contract of acquisition indicating the mode of acquisition (purchase, gift, long-term lease, etc.);
the purpose of acquisition (residence for a head of mission, representation chancery, etc.);
a description of the property, including in particular the land registry property number, the surface area of the land and the building, land register certificate;
a list of all other properties in Switzerland owned by the state in question including the surface area and use of said buildings.
The FDFA may set conditions for acquiring property such as reciprocity if, for example, the potential owner is a foreign state that will use the premises for official purposes related to its diplomatic missions or consular posts in Switzerland (Art. 25, para. 4 HSO).
In general it is advisable to allow at least three months for the whole procedure.
Under Article 23 of the Vienna Convention on Diplomatic Relations of 18 April 1961, foreign states acquiring real estate are exempt from registration fees and all Swiss taxes (federal, cantonal and communal) on income and wealth, as well as from property tax, provided that:
the property in question is specifically used for official purposes (chancery, ambassador's residence, etc.) and
the foreign state concerned is the beneficial owner of said property.
Article 23 also stipulates that foreign states acquiring real estate which is specifically used for official purposes and of which they are the beneficial owner are not, however, exempt from taxation on payment for specific services rendered.
Acquisition of land and buildings by staff of diplomatic missions or consular posts headed by a career consular officer
FDFA legitimation cardholders have three different options:
Restricted acquisition for people who cannot prove they will remain in Switzerland for an uninterrupted period of ten or five years depending on their nationality.
Unrestricted acquisition for people who can prove they will remain in Switzerland for an uninterrupted period of ten or five years depending on their nationality.
Unrestricted acquisition for EU/EFTA nationals.
Staff of diplomatic missions and consular posts headed by a career consular officer who are resident in Switzerland and have an FDFA legitimation card type B, C, D, E, KB, KC, KD or KE may acquire property as their main residence without prior authorisation, but only under certain conditions.
General rule
Although the persons listed above may acquire property without prior authorisation, there are three restrictions:
it must be used as the main residence (habitual residence),
it may not exceed 3,000m2, and
it must be in the person's own name. Sociétés immobilières d'actionnaires-locataires (SIAL – tenant limited companies) are not generally allowed.
Procedure
The following documents must be submitted to the purchaser's notary who will then execute the deed of sale:
FDFA legitimation card type B, C, D, E, KB, KC, KD or KE;
written confirmation from FDFA Protocol that the legitimation card is valid, to be requested using the form for this purpose (see under forms);
written statement by the purchaser that they are acquiring the property exclusively for themselves and their family as their main home with the intention of establishing permanent residence;
written statement that neither the purchaser nor their spouse or children under the age of 18 currently own accommodation in Switzerland, whether in their own name, as a shareholder in a property company or in any other form;
written agreement to move into the purchased property within six months of signing the deed of sale at the latest.
Staff of diplomatic missions and consular posts headed by a career consular officer with an FDFA legitimation card type B, C, D, E, KB, KC, KD or KE who can prove an uninterrupted stay of ten years in Switzerland may purchase property without prior authorisation and without being subject to restrictions (main residence, surface area, etc.). They are therefore treated in the same way as holders of a C permit.
Nationals of the following countries need only prove an uninterrupted stay of five years: Andorra, Monaco, San Marino, the US and the Vatican. These countries have bilateral settlement agreements with Switzerland that allow for reciprocity.
N.B. EU/EFTA nationals are not included in this list as they are subject to different rules (see point 3).
Procedure
The following documents must be submitted to the purchaser's notary who will then execute the deed of sale:
FDFA legitimation card type B, C, D, E, KB, KC, KD or KE;
written confirmation from FDFA Protocol that the legitimation card has been issued for the required uninterrupted period of five or ten years, to be requested using the form for this purpose (see under forms);
written declaration of the required uninterrupted period of five or ten years' residence in Switzerland.
Based on Annex 1 of the Agreement on the Free Movement of Persons (AFMP), the additional Protocol to the AFMPl for new EU member states and the Convention establishing the European Free Trade Association, EU/EFTA nationals with a right of residence and main residence in Switzerland have the same property acquisition rights as Swiss citizens.
EU/EFTA nationals resident in Switzerland and with an FDFA legitimation card type B, C, D, E, KB, KC, KD or KE may acquire property without prior authorisation or restrictions (main residence, surface area, etc.).
Procedure
The following documents must be submitted to the purchaser's notary who will then execute the deed of sale:
FDFA legitimation card type B, C, D, E, KB, KC, KD or KE plus written confirmation from FDFA Protocol that the legitimation card is valid – to be requested using the form for this purpose (see under forms).
Under Article 34 letters b and f of the Vienna Convention of 18 April 1961 on Diplomatic Relations, heads of mission and diplomatic representatives (legitimation card B or C) are not exempt from taxes and duties on private property situated in Switzerland, unless they own said property on behalf of the sending state for the needs of the mission. This also applies to consular officials and employees as set out under Article 49 paragraph 1 letter b of the Vienna Convention of 24 April 1963 on Consular Relations.
None of the aforementioned persons are exempt from registration, court or record fees, mortgage dues and stamp duties related to real estate acquisition.
All other employees of diplomatic missions (who do not have diplomatic status) are also subject to all taxes, fees and charges levied on private real estate in Switzerland.
Contact
Privileges and Immunities State Secretariat STS-FDFA Effingerstrasse 27 3003 Bern
