Buy-to-let mortgage for the self-employed in Switzerland, buying in Freiburg: €515,000 for two flats to let
“You earn too well — and that is exactly what makes the financing complicated.” When the Swiss dentist heard this sentence, he first thought it was a joke. A doctor mortgage in Germany usually comes with better terms than average — medical income is well understood by lenders here, even when the borrower finances from abroad.
How was a self-employed Swiss dentist financed for two flats to let in Freiburg?
The first bank financed foreign self-employed people only to a limited extent, and the second could not classify the Swiss company structure. We prepared the overall situation in full, with rising practice profits, private reserves and a securities portfolio, and took it to an institution that regularly handles cross-border financings for entrepreneurs. The commitment followed after a detailed review.
Why Germany?
For more than ten years he had run a well-established dental practice in the canton of Aargau, employed twelve staff and generated stable profits. Privately he had considerable reserves and several securities accounts.
His plan was as simple as could be.
He wanted to buy two flats in Freiburg im Breisgau and let them long-term.
The equity ratio was high.
The rental income convincing.
The creditworthiness excellent.
Even so, he initially received no financing commitment.
During his studies the dentist had lived in Germany for several years and knew the property market in the south-west very well.
His aim was not short-term speculation.
He wanted to invest part of his assets outside Switzerland while benefiting from a stable rental market.
The two flats were in a modern apartment building.
The key figures:
Total purchase price: 742,000 euros; Equity: 285,000 euros; Financing required: 515,000 euros.
The economics were convincing.
Even so, the first meetings were sobering.
The surprising rejection
The first bank pointed to internal guidelines.
Foreign self-employed people would, as a matter of principle, only be financed to a limited extent.
The second bank examined the case more thoroughly.
After several follow-up questions, however, a rejection followed here too.
Reasoning:
The income situation was excellent, but could not be classified according to the internal assessment guidelines because of the Swiss company structure.
In other words:
The problem was not the income.
The problem was that the bank could not assess it properly.
Why the self-employed from Switzerland are often assessed differently
Many banks work with standardised credit-scoring procedures.
These work very well for classic employees.
For practice owners, entrepreneurs or freelancers based abroad, the assessment runs considerably differently.
Among other things, the following are reviewed:
company accounts; private withdrawals; profit development; asset building; liquidity reserves; tax particulars; exchange-rate risks.
Not every bank has staff who analyse such documents regularly.
The analysis: Before a new financing enquiry, the overall economic situation was fully prepared.
It became clear:
The practice had generated continuously rising profits for years.
Private reserves were available in sufficient amounts.
There were no payment defaults or problematic liabilities whatsoever.
In addition, the dentist had a broadly diversified securities portfolio.
The two flats were convincing too.
They were in a sought-after location, were of high quality and achieved sustainable rental returns.
The decisive difference
This time there was no attempt to offer the financing to as many banks as possible.
Instead, an institution was specifically selected that regularly handles cross-border financings for entrepreneurs and freelancers.
All the particulars were explained even before the actual credit review.
As a result, the bank did not only understand the figures.
It understood the entire business model.
That is exactly what made the difference.
The financing: After the detailed review, the commitment followed.
The financing was structured for the long term.
A considerable part of the assets was deliberately left untouched to secure sufficient liquidity reserves.
The two flats were taken over a few weeks later and let immediately.
What other Swiss entrepreneurs can learn from this
Many self-employed people assume that high profits automatically lead to a financing commitment.
In practice, however, something else often decides.
The bank must be able to fully understand the economic situation.
The further company and asset structures are from the standard, the more important the choice of a financing partner with the relevant experience becomes.
International freelancers rarely fail on economic capacity: This case shows that international entrepreneurs and freelancers often do not fail because of their economic capacity.
Much more often, individual banks lack the routine in dealing with cross-border company structures.
Anyone who prepares their asset and income situation professionally and specifically selects financing partners creates the best conditions for a successful property financing in Germany.
Frequently asked questions
Can Swiss self-employed people finance property in Germany?
Yes. Many banks handle such financings, provided the economic conditions are documented comprehensibly.
Do practice owners need a different pool of lenders than employees?
Not fundamentally. The review is, however, often more extensive.
Are profits or private withdrawals assessed?
Depending on the bank, different figures feed into the credit assessment.
Is financing several flats possible?
Yes. What is decisive is property quality, equity and the overall economic situation.
Can further investments be financed too?
In principle yes, provided the long-term sustainability of the overall financing is given.
A similar situation? Let’s talk.
Every case with an overseas link is its own. In a free initial call we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission, as a rule, paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.