How do I finance my second home in France when I live in Switzerland?

Mortgage

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

Picture this: after years of hard work, you want a house in Provence, a chalet in Savoie or a pied-a-terre on the Cote d'Azur. But one question remains: how do you finance that dream while living in Switzerland?

For Swiss residents, whether employees, senior managers or self-employed, who want to secure their family's future while optimising their tax position, it is essential to understand the financing mechanisms available for buying a second home in France.

Financing options from Switzerland

Swiss mortgages for French property

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

Advantages:

The option to finance in CHF, aligned with your income.
Lending conditions similar to those in Switzerland.
Support from experts who know both the Swiss and the French markets.

Points 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.

Property loans from French banks

It is also possible to obtain a property loan from a French bank. However, conditions can be stricter for non-residents.

Access to competitive interest rates.
The possibility of benefiting from French tax schemes.
A more complex application process for non-residents.
The need to provide additional documents, such as proof of income and of residence.

Tax aspects not to overlook

Buying a second home in France can have tax implications, both in France and in Switzerland. It is important to look into:

Property wealth tax (IFI): applicable if the net value of your property in France exceeds a certain threshold.
Inheritance tax: when the property is passed on, duties may be owed in France.
The France-Switzerland tax treaty: it makes it possible to avoid double taxation, but it is essential to understand its terms properly.

Conclusion

Financing a second home in France from Switzerland is entirely feasible, provided the project is well prepared. We recommend consulting a wealth management adviser to build a strategy suited to your personal and tax situation.