The acquisition and financing structure comes before the property.

First establish who may acquire what

For foreign buyers, the first question is not necessarily price but acquisition eligibility. The Lex Koller restricts the acquisition of certain Swiss real estate by persons abroad. The analysis depends on who is buying, where that person or entity is resident and how the property will be used.

Commercial and operational real estate is often treated differently from residential, holiday or second homes. This is precisely why the legal assessment should precede the property search. Discovering after signing a reservation agreement that an authorisation is required or that the intended acquisition structure does not work costs time and negotiating leverage.

The acquisition structure belongs on the table before the offer

A property may be acquired privately, through an operating company or through a dedicated property company. The appropriate solution depends on use, financing, liability, tax, future disposal and the wider ownership structure.

For commercial real estate there is often an additional question: should the property sit inside the operating business or be separated from it? The answer affects the balance sheet, financing, risk and future transactions. A structure that appears convenient at acquisition can become cumbersome when the asset is sold or an investor is admitted later.

Financing is more than an interest rate

Swiss banks assess the property, the buyer and the overall economic structure. Equity, loan-to-value, income generation, existing liabilities and source of funds all interact.

International buyers also face KYC and compliance requirements. Banks want to understand how wealth was generated, from which countries funds originate and what future payment flows are expected. Entrepreneurs may therefore need to prepare private wealth evidence and company documentation in parallel.

Financing should not start only once a purchase agreement is ready. A credible financing framework improves planning and can also strengthen the buyer’s position with the seller.

Transaction costs differ by canton

Switzerland does not have one national cost structure for real estate transactions. Notary, land register, mortgage note and other charges differ by canton and municipality. The tax treatment of a later disposal is also cantonal.

Canton Schwyz, for example, does not levy a traditional property transfer tax. That does not mean a purchase has no transaction costs. Notary, land register, financing, valuation, technical due diligence and possible tax or corporate structuring remain relevant.

A realistic budget should therefore separate the purchase price from acquisition-related costs.

For commercial property, economic due diligence matters as much as technical due diligence

Residential acquisitions often focus on location, condition and personal use. Commercial property adds lease terms, tenant quality, remaining duration, indexation, vacancy risk, permits and permitted use.

A technically excellent building can still be economically problematic if a major lease expires shortly. Conversely, a property requiring investment may still be attractive if the location, use potential and income profile are strong. Due diligence should therefore combine legal, technical and economic analysis.

The purchase agreement is the result, not the beginning, of the transaction

In a well-prepared transaction, many questions are resolved before the notary appointment: parties, asset, financing, conditions, payment mechanics, handover, inventory, leases and existing rights and obligations.

For international buyers it is particularly useful to coordinate bank, notary, legal, tax and, where relevant, corporate structuring work. Delays often arise not because one step is unusually complex but because several straightforward steps were not coordinated.

What I recommend before beginning the search

Before actively searching, define the desired location, use, budget, equity, financing framework, acquisition structure and investment horizon. This does not restrict the search; it makes it more efficient.

For commercial real estate, a clear mandate is especially valuable. “I am looking for something interesting in Switzerland” produces many opportunities but little decision quality. A defined location, use, target return, space requirement, risk profile and investment size creates a much more effective search process.

For me, professional property advisory therefore does not begin with the brochure. It begins with the buyer’s structure and actual objective.