Buying German property from Switzerland: how banks treat CHF income
Resident in Switzerland, income in CHF — and still want a mortgage in Germany? It is possible — subject to specific requirements regarding equity, proof of income and choice of bank.
Which Swiss bank provides financing for property in Germany?
As a rule, no Swiss bank finances property in Germany; exceptions exist, if at all, only near the border. Financing is provided by specialist (Spezialbank) German banks, which take your CHF income into account by applying a safety margin of 10–25 % (or 50 % for 100 % financing) to the income converted into euros. We act as an independent broker in accordance with Section 34i of the German Trade Regulation Act (GewO), selecting from over 650 banks those that accept Swiss residency and income in Swiss francs.
Market benchmarks in Germany: what applies to interest rates and KfW for your German property?
Banks apply a safety margin of 10–25 % (50 % in the case of 100 % financing) to the CHF income converted into euros; most do not charge an interest premium. The construction loan interest rate is determined on a case-by-case basis and depends on creditworthiness; KfW subsidy schemes depend on the nature of the project and whether the property is for owner-occupation.
Who provides financing for Germans resident in Switzerland to purchase property in Germany? Olga Nikushkina acts as an independent broker in accordance with Section 34i of the German Trade Regulation Act (GewO), selecting from over 650 banks those specialist lenders that accept income in Swiss francs and Swiss residency — free of charge, as the fee is usually paid by the lending bank. Cross-border commuters and permanent residents are both areas in which she has proven expertise. Cross-border commuters: income from Switzerland.
How is my CHF income calculated, and how much is taken into account? Banks apply a safety margin of 10–25 % (50 % for 100 % financing) to the CHF income converted into euros, depending on the currency and type of income. Loan-to-value ratio of 60–100 %, depending on the type of income and credit rating; own funds of up to 40 % depending on the case, plus ancillary costs. Most banks do not charge an interest premium. Cross-border commuters: income from Switzerland.
Can I use pension fund assets as equity? Yes, but only if the property is used as your main residence. An early withdrawal under the WEF scheme in accordance with the BVG is prohibited by law for investment purposes, letting out property and second homes, and the pension fund usually requires you to transfer your residence to Germany. Investment from abroad.
As a cross-border commuter between Germany and Switzerland, or as a resident of Switzerland, can I obtain a German mortgage? Yes — even as a cross-border commuter between Germany and Switzerland or as a resident of Switzerland, the situation is simpler than one might expect. Compared with other third countries, Switzerland offers proximity, a stable legal environment and proof of income that German banks can understand.
There are differences in the documentation required: proof of income must cover a longer period than for an applicant resident in Germany.
- 2.00 % ECB base rate
- your individual mortgage rate (subject to credit rating)
- €100,000 KfW Home Ownership Loan (124)
- €150,000 KfW Climate-Friendly New Build (297/298)
Market benchmarks for Germany, as at June 2026 — not an offer; terms and conditions subject to creditworthiness and the property in question. KfW subsidy schemes subject to the nature of the project and owner-occupation; eligibility assessed on a case-by-case basis. Sources: Deutsche Bundesbank (MFI interest rate statistics), KfW, market data from large mortgage brokers.
Residence in Switzerland:
- up to 40 % equity depending on the case + purchase costs
- CHF income at specialist banks
- 15–25 % of all banks active
Why is ‘residence in Switzerland’ a category in its own right?
Not every bank includes Swiss residency in its lending guidelines at all — those that do are well acquainted with the circumstances involved and handle them as a matter of routine. That is why the choice of bank is the deciding factor in whether a loan is approved.
At the same time, Switzerland presents a challenge of its own: many banks apply a discount when valuing income in CHF, as the foreign-exchange risk still exists.
Pension fund assets are an important component of equity under the Swiss system — but only if the property is used as the owner’s main residence. This option is not available for a property let out. Swiss banks recognise these entitlements; German banks take different approaches. We know which banks accept this.
What is realistic: Equity: up to 40 % depending on the case, plus purchase costs (notary, land register, real estate transfer tax); Fixed-rate period: 5, 10, 15 or 20 years — as with residence in Germany; Borrowing rate: close to standard terms, some banks add a premium of 0.1–0.3 %; Mortgaged property: the property is in Germany — it is valued at German market value; Notary appointment: in person in Germany or by power of attorney certified by a Swiss notary.
Why do Swiss banks turn down financing for property in Germany?
The security — the land charge — is located in Germany, is entered in the German land register and is governed by German law.
Conversely, German banks generally do not finance property in Switzerland.
Swiss banks’ financing of property in Germany: Why do they turn down such applications? The security — the land charge — is located in Germany, is entered in the German land register and is governed by German law. German banks handle this as a matter of routine, whilst Swiss banks usually do not deal with it at all. Anyone who enquires with their Swiss bank will therefore often receive a refusal that says nothing about their creditworthiness.
Loans in Germany for Swiss residents: What are the rules at German banks? The loan is structured as a mortgage in euros, secured by a land charge on the German property — loans without a land register entry are virtually non-existent for Swiss residents. Most banks do not charge an interest surcharge for Swiss residents; a few justify a small surcharge on the grounds of the additional administrative costs involved. The right of conversion (Wandlungsrecht) under Section 503 of the German Civil Code (BGB) does not apply to Swiss residents, even though banks often cite it as a reason for rejection.
Residing in Switzerland, buying property in Germany: How do the rules differ from those in Switzerland? In Switzerland, a minimum of 20 % equity is required, and the mortgage must be affordable, with costs not exceeding one third of income. There are no such fixed legal limits in Germany: the bank bases its assessment on a household budget showing income and expenditure and carries out its own valuation of the property. If you are resident abroad, the ancillary purchase costs must be covered from your own funds. The bank values multi-family properties based on their income-based value — this usually requires a higher level of equity.
Property in Germany whilst resident in Switzerland: How do the rules differ from those in Switzerland? The main difference is that the property is valued in accordance with German law and at its German market value. The mortgage is registered in the German land register. You must attend the notary appointment in person in Germany or by way of a power of attorney certified by a Swiss notary.
Main page for Germans living abroad (overview): An overview of all countries of residence.
Loans for cross-border commuters to Switzerland: What do German banks check?
German banks primarily examine how cross-border commuters’ CHF income should be taken into account.
Banks apply a safety margin of 10–25 % (50 % for 100 % financing) to income converted into euros, depending on the currency and type of income. The loan-to-value ratio ranges from 60–100 %, depending on the type of income and creditworthiness. Proof of income must cover a longer period than is required for those resident in Germany.
Frequently asked questions
Do I have to travel to Germany?
It’s not usually essential — a lot of it is done digitally. We’ll discuss postal deliveries and account management with you.
I’m planning to return to Germany — will that affect the funding?
Yes, usually to one’s advantage. Anyone who buys a property for their own use upon their return broadens their range of banking options compared to a purely financial investment from Switzerland — and, provided they have a fixed return date and intend to live in the property themselves, is often also eligible for standard KfW schemes (e.g. KfW 124), which is usually not an option for capital investments made from abroad. The correct sequence of the fixed-rate period, return date and application submission is crucial — we’ll discuss this during our initial consultation.
Loans in Germany for people resident in Switzerland: What are the rules at German banks?
At the German bank, the rules applicable to a specialist bank that accepts Swiss residency and income in Swiss francs apply. Income in Swiss francs is taken into account at a reduced rate, and proof of income covers a longer period. Fixed-rate periods are 5, 10, 15 or 20 years, as is the case for residents in Germany. The borrowing rate is close to standard terms; some banks apply a surcharge of +0.1–0.3 %.
Request a feasibility assessment
We’ll assess your specific financial situation — free of charge, with no obligation, in German, English or Russian.
Related pages
Buying property in Germany whilst living abroad
Getting started: requirements, documentation and mortgage terms when buying property in Germany from abroad.
Residing in another EU country — buying property in Germany
Within the EU, securing finance is often easier — as banks accept EU residency.
Buying a flat in Germany: Is it easier from the Netherlands or Austria?
Neighbouring countries with their own banking systems — what matters if you’re resident in the Netherlands or Austria.
Germans in the UK — Buying property in Germany
Post-Brexit: GBP income and the banks that continue to finance UK residency.
Germans in the USA and Canada — Buying property in Germany
USD/CAD income, time difference, documentation — financing from North America.
Residing in Scandinavia — Buying property in Germany
Sweden, Denmark, Norway and Finland — four very different starting points.
Residing in Dubai and the UAE — Buying property in Germany
Tax-free income, record-keeping and the right banks for UAE residents.
Resident in China — Buying property in Germany
It is the proof of the source of funds (Mittelherkunftsnachweis) and the foreign exchange regime that are decisive, not creditworthiness.
Residing in Russia — Buying property in Germany
Sanctions determine the transfer of capital — the situation with the narrowest choice of banks.
Mortgages without a German residence: Which countries are not eligible?
The four factors that determine feasibility — before making your first enquiry.
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.
