INVESTING IN VALAIS

Investing in Real Estate

Valais : a pinnacle of luxury nestled in swiss alps

High mountains, cosy chalets, and gentle way of life, let’s find your winning combination with John Taylor

If I say Switzerland, what image spring to mind? Undoubtedly, its mountains, breathtaking landscapes and the effervescence of its world-renowned resorts. Thus, Verbier, Gstaad, Crans Montana or Sion cannot be unknown to you. Nestled in the Swiss Alps, the resorts of the Valais, offer to its customers a luxurious and complete panel of amenities, both for vacations and daily life.

A heaven for international companies as well for the financial elite, the property market is very dynamic, and rightly so. Whether you want to buy a primary or secondary residence, discover in this article why the Valais, quintessential of luxury, cultivation and Swiss identity is a real Eldorado for investment.

Sale apartment veysonnaz CHF 2 500 000 (ref. V0198CR)

Why to Invest in the Valais ?

Investing in a property here is a pledge of long-term stability from an economic point of view and a favourable tax system

Indeed, Predictability and stability are key characteristics of the Swiss and their Federal Government. and this works perfectly since the country has one of the strongest economies on the continent and a low national debt even after the pandemic. Tax regimes remain reliably constant, and the Swiss Authorities are renowned for their flexibility. Besides, tax increases are not planned or expected. In addition, one may assert that there is any Inheritance Tax in the Carton of the Valais. Switzerland offers international clients the possibility of a “Lump Sum Taxation regime” thank to double taxation treaties with countries across the globe. Finally, think thank do not forsee a significant downturn in the Swiss Real Estate market. Recent activity in prestige resorts indicate that prices continue to remain stable, also in the exclusive luxury segment, where demand still outstrips supply

For quality of life, safety and tranquility without being isolated

Whether you choose Verbier, Gstaad, Crans Montana or Sion, you can be convinced that you will enjoy relative security, prosperity, and stability in an ever-turbulent world. Indeed, the confinement makes the idea mature for some to move away from overpopulated metropolitan areas and seek out quieter and more serene environments that offer better "quality of life" for them and their families (especially since the democratization of telecommuting has facilitated the process). Thus, The Valais offers a wealth of sports and leisure activities as well as world-class competition both during winter and summer. But still, the canton is home to some of the best schools for children and are very well served by transportation such as train, motorway infrastructures. Morover, there is an Airport in Sion, and Geneva International airport is less than an hour.

A stunning duplex to sell in the heart of Verbier, CHF 4 190 000 (réf : V0204VE)

How to invest in Valais?

Differences between the statutes

To buy a residential property in Switzerland you must be a Swiss resident and have a B or C residence permit. It is important to note that the B permit does not allow the purchase of several properties. In certain regions considered as tourist areas, it is possible to purchase certain properties reserved for foreigners without being residents, as these are considered as secondary residences. Before clients view any real estate, the broker must ensure that they meet these essential criteria. However, the main residence must be inhabited for a minimum of six months per year, the secondary residence for at least three weeks per year. Foreigners who decide to buy land are strongly advised to build their house in the year following the purchase of the land. If you are a foreigner without residence permit, Authorization is required for the purchase of a secondary residence, which cannot be sold for five years. Non-resident aliens can only buy a single property with a maximum land area of 1,000 m2 and a living space of 200 m2. It is important to know that this regulation applies equally to children over 20 years of age outside their parents` tax household and who want to access the property. However, you can acquire more substantial land without any size restriction if you buy a new vacation residence. This is a new option offered by the Valaisan property market.

Construction Standards/Regulations

To preserve the charm of ski resorts, a new law known as Lex Weber limits the construction of secondary residences in the resorts. It is, however, possible to build a property that has already received a building permit and to renovate an existing property. If the renovation of a second home is located in an area that complies with the law, it will be possible to enlarge the property by 30%. It is possible to destroy the property, but it will have to be rebuilt in the same place. When buying a new residence, it is compulsory to pay a deposit of 10%, then to pay 30% for the earthworks/foundation, 30% for installing the roof, and the remaining 30% for handover of the keys.

Financing

Brokers must ensure that their clients have the financial capacity to acquire property and refer them to professionals in the banking sector in order to study their file and find the best mortgage financing. - Property below Sw. Fr 2,500,000: In terms of financing, for property below Sw. Fr 2,500,000, banks require 20% of equity capital, half of which must come from cash savings, the other half can be from a pension fund. The remaining 80% will be financed by the bank through a mortgage. Mortgage financing must not, however, exceed 33% of the income of the individual or the couple who commits to the purchase. The property must be depreciated at a minimum of 1% per year until the debt is only 66% of the value of the property. - Property in excess of Sw. Fr 2,500,000: If the sale price is more than Sw. Fr 2,500,000, the bank may ask for additional equity capital up to 40%. It depends on the financial situation of the future purchaser. There is absolutely no time constraint to pay for your home loan. It is necessary to pay bank interest rates every three months and a minimum of 1% annually on the total amount of the sale. For Swiss nationals and residents, 50% of the sale price must be paid before the age of 60. It is recommended that you talk to several banks to obtain an attractive rate.

A beautiful Chalet to sell in Verbier, CHF 19 800 000 (réf : V0043VE)

The choice of notary

Once the financial situation has been validated and both parties have reached an agreement on the final sale price, a notary must be appointed by the purchaser to sign the deed of sale over time or finally. All sales in Switzerland are made through a notary. To reserve the property, a minimum amount of 10% of the sale price must be paid into the account of the Valais Association of Notaries who will keep the sum until the sale is finalized. The notary will prepare the deed of sale and propose a date for its signing. The remaining 90% of the sale price will have to be paid at the time of the signing or upon delivery of the property if it is under construction. Notary fees and registration fees represent approximately 5% and must be paid by the buyer. Upon receipt of the deed of sale signed by both parties, the Land Registry can then register it so that the buyer can legally become the new owner of the property. Notary fees, including transfer costs and other taxes, amount to approximately 5% of the sale price. A seller or buyer may be represented by a third party through a proxy.

Payment and additional fees

The buyer must pay a deposit to the notary before signing the deed of sale, which represents 10% to 20% of the sale price. The balance will be payable on the day of signature of the final sale or on transfer of ownership in the case of a forward sale. Swiss VAT is 8%. Except in rare cases, the commission due to the agency is paid by the owner. The commission fee in Geneva generally amounts to 3% of the sale price + VAT. In Switzerland, it may vary according to the region. The percentage can amount to more or less, depending on the contract signed with the owner. The notary calculates the amount of the tax and deducts it from the sale price. If owners have sold their principal dwelling and intend to reinvest their profits within five years in the purchase of a new principal dwelling, they may benefit from the re-investment. If the term of ownership is:

• less than 2 years: the rate is 50% of the sale price

• at least 2 years: the rate is 40% of the sale price

• at least 4 years: the rate is 30% of the selling price

• at least 6 years: the rate is 20% of the sale price

• at least 8 years: the rate is 15% of the sale price

• at least 10 years: the rate is 10% of the sale price

• at least 25 years: you are not taxable

Where to invest in Valais ?

Verbier

Verbier has just won the 2022 ‘world’s best ski resort’ award (the world ski awards) for the fourth time. Situated at 1500m, in the heart of the alps, under two hours from Geneva international airport – with a direct train service straight to le chable. Gateway to the four valleys ski area, with over 80 lifts and 400km of pistes, Verbier offers alpine sports for clients of all levels - it is a veritable freeride paradise and hosts annually the extreme Verbier freeride competition. In the summer, mountain bike and e-bike lovers flock here to experience a wealth of possibilities and world class events. With its cosmopolitan clientele Verbier’s “apres-ski” and nightlife scene is known across the globe, top quality restaurants, luxury hotels, entertainment, including the world famous Verbier festival of classical music, are just some of the attractions for our demanding clientele. Such are the attractions of our resort that numerous wealthy international families actually choose to take up domicile in verbier and to enjoy the unique swiss fiscal, economic and lifestyle benefits that today’s demanding international clientele highly appreciate.

Crans-Montana

With its exceptional climate, the region, endowed with inspiring vegetation, calming lakes, marvelous hiking paths and breathtaking landscapes, Crans-Montana will not fail to give you a break from your routine and invites you to distance yourself, for a few hours, from the sometimes-incessant flow of thoughts. ...Ideally located at 3 hours from the international airport of Zurich, 2 hours from the international airport of Geneva and 30 minutes from the airport of Sion, Crans-Montana has the capacity to welcome a demanding international clientele throughout the year. "Crans-Montana, resort of all seasons, with its thousand and one activities". This slogan of the House of Tourism of Crans-Montana expresses well the diversity of the activities and events which animate the elegant Valaisan station in all seasons. From the Omega European Masters golf tournament to the FIS Alpine skiing world cups and the 2027 FIS skiing world championships, not forgetting the Caprices festival, the Opale Foundation or the Alaïa Chalet, there is always something happening in Crans-Montana. Skiing, golf, trekking, congresses, shopping, prestigious relaxation and wellness areas, Crans-Montana is also home to the "Regent International School", a private place of learning for young people aged 3 to 18... "

Sion

"Nestled in the heart of the Alps, Sion is a region of some 35 km² that stretches from the plains to the mountains, culminating at an altitude of 2300 meters. With nearly 35,000 inhabitants, Sion is the economic and cultural engine of the region, with its airport, numerous theaters, cultural centers, museums and galleries. In addition to the beauty of its alpine landscapes, it has beautiful vineyards and a rich history. Sion is distinguished by a development model that harmoniously combines urban and mountain lifestyles. Innovation is at the heart of the city's strategy, which relies on natural resources and its geographical location for its projects in health, energy and geosciences.