Buying German property from Switzerland: how do banks treat CHF income?
Resident in Switzerland, income in CHF — and still a mortgage in Germany? It’s possible — but with special requirements on equity, proof of income and choice of bank. As a non-resident mortgage, this case needs the right bank from the start, not the first one approached.
Can I get a German mortgage while living in Switzerland?
Yes, a German mortgage is more workable for residents of Switzerland than its reputation suggests. Income in francs is credited with a safety discount of 10 to 50 % on the converted euro amount, and the loan-to-value runs at 60 to 100 %, so equity reaches up to 40 % plus purchase costs.
Buying German property from Switzerland: which lenders should you approach?
Buying German property from Switzerland works with lenders that credit CHF income at a discount.
Can Germans living in Switzerland finance property in Germany? Yes. Residence in Switzerland with income in CHF and a mortgage in Germany is possible, with special requirements on equity, proof of income and the choice of bank. More lenders accept a Swiss residence in their country lists than a Swedish or Danish one, so the pool of banks is somewhat wider.
Loan to value: how is CHF income assessed, and how much equity is needed?
Banks that accept a Swiss residence apply a safety discount of 10–50 % on the CHF income converted into euros, depending on currency and type of income.
Loan-to-value is 60–100 %, depending on income type and creditworthiness; expect up to 40 % equity depending on the case, plus incidental costs. Cross-border commuters.
Market reference values, Germany
The reference values are an ECB key rate of 2.00 % and a 10-yr effective mortgage rate of 3.5–3.9 %. With a Swiss residence, equity is up to 40 % depending on the case plus incidental costs.
2.00 % ECB key rate; 3.5–3.9 % 10-yr mortgage rate (effective); €100,000 KfW home ownership (124); €150,000 KfW climate-friendly new build (297/298).
Swiss residence at a glance: up to 40 % Equity depending on the case + incidental costs; CHF Income at specialist banks; 15–25 % Of all banks active here.
Why a Swiss residence is its own category
Switzerland is not an EU member — and more German lenders admit a Swiss residence in their country lists than a Swedish or Danish one. That is an important advantage: the choice of banks is somewhat wider than for tax non-residents from Sweden or Denmark.
At the same time, Switzerland is a challenge of its own: income in CHF is assessed by many banks with discounts, because the foreign-currency risk remains. Banks that accept a Swiss residence calculate with a safety discount of 10–50 % on the CHF income converted into euros, depending on currency and type of income.
Pension-fund money is an important equity element in the Swiss constellation — but only for owner-occupation as your main residence. An early withdrawal under Swiss home-ownership promotion (WEF/BVG) is legally excluded for investment properties, rental, or second homes; the pension fund also typically requires you to relocate your residence to Germany.
For a rented-out property this route is not available. Swiss banks confirm the entitlement; German banks assess it differently. we know the banks that accept it.
What's realistic: Loan-to-value: 60–100 %, depending on income type and creditworthiness; Equity: up to 40 % depending on the case, plus incidental costs (notary, land register, property transfer tax); Fixed-interest period: 5, 10, 15 or 20 years — the same as for a German residence;
Interest rate: close to standard terms; some banks calculate a +0.1–0.3 % surcharge; Mortgaged property: the property is in Germany — valued at the German market value; Notary appointment: in person in Germany or a power of attorney certified by a Swiss notary.
Which Swiss bank finances property in Germany?
As a rule, none: Swiss banks hardly finance property in Germany, with exceptions at most near the border. Financing runs through German banks that accept income in Swiss francs — we know these lenders. Conversely, German banks generally do not finance property in Switzerland.
- How it is financed: a mortgage loan in euros, secured by a land charge on the German property — unsecured loans are practically unavailable with a Swiss residence.
- Interest: most banks charge no surcharge for a Swiss residence; a few add a small one for the extra work. Currency-conversion right: § 503 BGB does not apply to residents of Switzerland, even though banks like to cite it as a reason to decline.
- Different rules from Switzerland: there is no statutory 20 % minimum equity or one-third affordability cap in Germany; the bank uses a household budget and values the property itself. Purchase costs come from your own funds.
Market reference values for Germany, as of 06/2026 — not offers; terms depend on creditworthiness and the property. KfW funding modules depend on the project and on owner-occupation, with eligibility assessed case by case. Sources: Deutsche Bundesbank (MFI interest-rate statistics), KfW, Dr. Klein.
Frequently asked questions
Do I pay higher interest with a Swiss residence?
Usually not. Most banks that finance a Swiss residence do not charge an interest surcharge. Only a few institutions add one for the extra effort — we steer you to the favourable ones.
Does it also work as a cross-border commuter?
Yes; both permanent residents and cross-border commuters with franc income are a well-established speciality.
How much can I finance?
Depending on location and creditworthiness, 60–100 % of the lending value is possible; equity accordingly up to 40 % depending on the case, plus purchase costs.
Do I have to travel to Germany?
Usually not strictly — much runs digitally. We arrange postal delivery and account handling with you.
I'm planning to return to Germany — does that change the financing?
Yes, usually to your advantage. Buying the property for owner-occupation after your return widens the pool of banks compared with a pure investment purchase from Switzerland, and with a fixed return date and planned owner-occupation you often become eligible for regular KfW programmes (e.g. KfW 124), access to which is usually excluded for investment purchases from abroad.
Getting the timing of the fixed-interest period, the return date and the application right matters — we discuss that in the initial consultation.
Request a feasibility check
We review your specific financing situation — free, non-binding, in German, English or Russian.
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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.