Do I as a Swiss need special permission to buy a house in France or Italy?

No. Swiss can buy residential property in France and Italy without special permission — unlike foreign buyers in Switzerland, who are subject to Lex Koller. In Italy, reciprocity to Switzerland has been recognised for decades. Note however: Swiss without an EU residence permit are limited to 90 days per 180 days in the Schengen area as third-country nationals — that limits the own use as a secondary residence.

How high are typical purchase ancillary costs in France and Italy?

France existing: around 7–8 % of the purchase price (frais de notaire incl. droits de mutation 5.80 %, émoluments 1–1.5 %, débours 0.1–0.3 %). France new build: around 2–3 % frais de notaire plus 20 % TVA on the construction value. Italy existing (seconda casa): around 9–12 % effective including notary (1.5–2.5 %), broker 3.66 % and imposta di registro 9 % on the cadastral value (effective approx. 3–5 % of the purchase price). Italy new build: fixed stamp taxes plus 4 % IVA (prima casa) or 10 % IVA (seconda casa).

When does the Plusvalenza arise on resale in Italy?

Only in the first 5 years after purchase. Anyone holding longer than 5 years sells in Italy tax-free . Within the 5-year period, Plusvalenza applies with 26 % flat-rate withholding tax on the sale gain (withheld by the Notaio) or alternatively with inclusion in the regular IRPEF. An exception applies to the actual prima casa (main residence) — which, however, does not apply for Swiss holiday-home owners because the main residence remains in Switzerland.

Do I as a Swiss owner in France have to pay IFI wealth tax?

Yes, as soon as your net real-estate wealth in France exceeds EUR 1.3 million. For non-residents, the IFI applies only to French-situated real estate (not to Swiss wealth). The tariffs are progressive (0.5 % between 800,000–1.3 million, 0.7 % up to 2.57 million, 1.0 % up to 5 million, 1.25 % up to 10 million, 1.5 % above). Mortgages are in principle deductible, but with anti-abuse rules. A second Parisian apartment and a holiday house on the Côte d'Azur can quickly exceed the threshold.

What is IMU and how high is it for my Italian holiday house?

IMU (Imposta Municipale Unica) is the annual Italian ownership tax. Basis: rendita catastale × 1.05 × 160 (residential buildings category A). Standard tax rate 0.86 %, adjustable by communes between 0.46 % and 1.06 %. For Swiss holiday-home owners (always seconda casa, because main residence in Switzerland), the effective burden is typically 0.2–0.5 % of the market value per year, because the cadastral value lies significantly below the market price. Semi-annual payment on 16 June and 16 December.

How high is Italian inheritance tax on a house worth EUR 500,000?

For spouses or children: EUR 0. Italian inheritance tax has an allowance of EUR 1 million per spouse/child. If the child inherits a house worth EUR 500,000, no inheritance tax arises. Only from EUR 1 million is the excess part taxed at 4 % flat. For siblings, an allowance of EUR 100,000 and a rate of 6 % apply; for non-relatives EUR 0 allowance and 8 % rate. Italy is thus considerably cheaper for Swiss testators than France (there only EUR 100,000 allowance per child and progressive 5–45 %).

Buying a House in France & Italy: Notary, Taxes, Inheritance Law (CH)

Q: How does the French Plus-Value Immobilière work?

19 % federal share plus 17.2 % social contributions (prélèvements sociaux) on the sale gain. The rates decline progressively: after 22 years of holding, the federal share lapses completely; after 30 years, the social contributions also. For high gains over EUR 50,000 an additional tax of 2–6 % applies. Anyone who sells in the first 5 years pays the full 36.2 % on the gain — anyone holding between 10 and 22 years moves progressively lower.

When buying an existing property, Swiss buyers pay around 7–8 % frais de notaire in France (of which 5.80 % droits de mutation) and around 9–12 % in Italy for a seconda casa. The main notarial contract — the acte authentique or rogito — is mandatory in both countries. Both double taxation agreements (DBA) assign real estate to the situs state; Switzerland exempts it with a progression reservation. By making an express choice of law under EuErbVO Art. 22, you secure Swiss inheritance law for the foreign property.

How high are the incidental purchase costs in France and Italy?

France, existing property: around 7–8 % — droits de mutation 5.80 %, émoluments 1.0–1.5 %, débours 0.1–0.3 %, contribution de sécurité immobilière 0.1 %. New builds only 2–3 %, but with 20 % TVA on the construction value. Italy, seconda casa: around 9–12 % effective — notaio 1.5–2.5 %, broker 3.66 % (3 % + 22 % IVA), imposta di registro 9 % of the valore catastale, which typically lies 30–60 % below the market price (effectively around 3–5 % of the purchase price).

When does the plusvalenza apply in Italy upon resale?

Only within the first 5 years after the purchase. Within this period it applies at a flat-rate 26 % withholding tax on the gain (withheld by the notaio) or, alternatively, via the regular IRPEF. After the 5-year period expires, the capital gain is entirely tax-free. The prima-casa exemption does not apply to Swiss holiday-home owners because the main residence remains in Switzerland — the property always counts as a seconda casa.

How does the French plus-value immobilière work?

19 % federal share plus 17.2 % social charges — anyone who sells within the first 5 years pays the full 36.2 % on the gain. The rates taper off: the federal share at 6 % per year from year 6, fully tax-free after 22 years; the social charges only after 30 years. Gains above EUR 50'000 incur an additional tax of 2–6 %. The résidence-principale exemption generally does not apply to Swiss buyers.

Do Swiss buyers in France have to pay the IFI wealth tax?

Yes, as soon as the net real estate assets in France exceed EUR 1.3 million — for non-residents only on French-situated properties, not on Swiss assets. Note the threshold effect: tax is levied from the first euro above EUR 800'000. The progressive tariff ranges from 0.5 % (800'001–1'300'000 €) through 0.7 %, 1.0 % and 1.25 % up to 1.5 % above 10 million €. Mortgages are generally deductible (with anti-abuse rules).

How high is the IMU for my Italian holiday home?

Assessment base: rendita catastale × 1.05 × 160 (residential building category A). The standard rate is 0.86 %, adjustable by the municipalities between 0.46 % and 1.06 %; in tourism hotspots the seconda-casa rate is often 0.96–1.06 %. Effectively this is typically 0.2–0.5 % of the market value per year, because the cadastral value lies well below it. Paid in two instalments on 16 June and 16 December.

How do I secure Swiss inheritance law for the foreign property?

Through an express choice of law under EuErbVO Art. 22 in favour of Swiss inheritance law in the will or inheritance contract. Without it, the stricter réserve héréditaire (descendants 1/2 to 3/4) or the Italian legittimari loom in the event of a dispute. In terms of inheritance tax, Italy is clearly more favourable: a tax-free allowance of EUR 1 million per spouse/child, after which 4 % flat — a house worth EUR 500'000 passes to the child tax-free. France grants only EUR 100'000 per child, after which 5–45 % progressively.