G permit: can cross-border commuters buy in Switzerland?

Yes, under conditions. If you are an EU or EFTA national working in Switzerland as a cross-border commuter (G permit), you can buy a home in the region of your workplace without an authorisation, as a second home that you use yourself. You cannot rent it out, and your Swiss pension fund generally cannot pay for it.

Key points

Exemption for EU/EFTA cross-border commuters: a second home in the region of the workplace.
You must use it yourself; renting it out, even partly, is not allowed.
Swiss pension-fund money usually cannot be used: it is reserved for your main residence.
Other cases (non-EU commuters, investment property) generally need an authorisation.

What the law allows

The Lex Koller limits property purchases by people who do not live in Switzerland. Cross-border commuters live abroad, so in principle they fall under it. The law makes an exception for EU and EFTA nationals working in Switzerland as commuters: they can acquire a second home in the region of their place of work without an authorisation.

Two conditions matter in practice:

Location. The home must be in the region of your workplace, not anywhere in Switzerland.
Own use. You must use the home yourself as long as you work in the region. Renting it out, even partly, is not allowed.

If you are not an EU or EFTA national, or if you want an investment property, an authorisation from the canton is generally required. Ask the cantonal authority or a notary before you commit.

Financing: what changes for a commuter

Equity from your own savings. Swiss pension-fund money (2nd pillar) can only finance the home you live in as your main residence. As a commuter, your main residence is abroad, so a Swiss home is a second home and your Swiss pension savings usually cannot be used for it.
Stricter criteria for second homes. Banks treat a main residence, a second home and an investment property differently. Expect at least the usual 20% equity, and sometimes more for a second home.
Affordability. The bank still checks that the theoretical cost of the mortgage (at around 5%), plus your other housing costs, remains sustainable with your income. Our Swiss mortgage calculator applies the rules for a main residence.
Buying costs come on top: in Vaud, about 4 to 5% of the price. See the real costs of buying in Vaud.

Moving to Switzerland changes the picture

If you plan to move to Switzerland, the home can become your main residence, and the rules for residents apply: your pension savings can then help with the equity, within the usual limits. Timing matters, so it is worth planning the purchase and the move together. See getting a mortgage with a B permit.

The permit itself is managed by the canton of your employer, and is limited to the border zone of that canton.

Frequently asked questions

Can a cross-border commuter buy property in Switzerland?

EU and EFTA nationals working in Switzerland as cross-border commuters can buy a second home in the region of their workplace without an authorisation, provided they use it themselves and do not rent it out. Other situations generally require an authorisation from the canton.

Can I rent out the flat I bought with a G permit?

No. The exemption for cross-border commuters requires you to use the home yourself for as long as you work in the region. Renting it out, even partly, is not allowed.

Can I use my Swiss pension fund to buy a home in Switzerland as a commuter?

Usually not for a Swiss second home. Swiss pension money (2nd pillar) can only finance the home you actually live in as your main residence, and as a commuter your main residence is abroad. Your savings and other funds must therefore cover the equity.

What if I move to Switzerland?

If you move here with a B or C permit, you are no longer a commuter: the rules for residents apply, and the home can become your main residence. See our guide on buying with a B permit.

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Sources: Federal Office of Justice, guide to the Lex Koller (French) ; Canton of Vaud, Lex Koller memo (French) ; State Secretariat for Migration, G permit ; UBS, using pension savings for home ownership.

This article is for information only and is not personalised legal, tax or financial advice. Rules can change: check your situation with a specialist before you commit.