The dream of a house in Provence or a chalet in the mountains: how to make it happen from Switzerland?

Imagine: after years of hard work, you aspire to a house in Provence, a chalet in Savoie, or a pied-à-terre on the Côte d'Azur. But one question remains: how to finance this dream while residing in Switzerland?

For residents in Switzerland, employees, executives, or freelancers, concerned with securing their family's future while optimizing their taxes, it is essential to understand the financing mechanisms available for the purchase of a second home in France.

Financing options from Switzerland

Swiss mortgages for properties in France

Some Swiss banks offer mortgages for purchasing real estate in France. These loans can be in Swiss francs (CHF) or euros (EUR), depending on the currency of your income and the intended use of the property.

Advantages:

• Possibility to finance in CHF, aligned with your income.

  
  

• Loan conditions similar to those in Switzerland.

  
  

• Support from experts familiar with both Swiss and French markets.

  
  

To consider:

• A personal contribution of at least 30% is generally required.

  
  

• Pension assets (2nd and 3rd pillars) cannot be used to finance a second home.

  
  

Real estate loans from French banks

It is also possible to obtain a real estate loan from a French bank. However, the conditions may be stricter for non-residents.

Advantages:

• Access to competitive interest rates.

  
  

• Possibility to benefit from French tax provisions.

  
  

To consider:

• More complex application process for non-residents.

  
  

• Need to provide additional documents, such as proof of income and residence.

Tax aspects not to be overlooked

The purchase of a second home in France may have tax implications, both in France and Switzerland. It is important to inquire about:

• The real estate wealth tax (IFI): applicable if the net value of your real estate in France exceeds a certain threshold.

  
  

• Inheritance taxes: in the event of passing on the property, taxes may be owed in France.

  
  

• The French-Swiss tax treaty: it helps avoid double taxation, but it is essential to understand its terms well.

  
  

Conclusion

Financing a second home in France from Switzerland is entirely feasible, provided you prepare your project well. It is recommended to consult a wealth management advisor to develop a strategy tailored to your personal and tax situation.