Buying or Renting a Winter Home Overseas: Part 1

Have you ever thought of getting away for the holidays? Whether it’s a snowy ski trip or a bit of winter sun you are looking for, spending your winter abroad can give you a change of scene and make the holidays feel all the more special. Hotels and other temporary accommodation work well for short trips, but if you have the time to spend a longer period overseas – and have a favourite location which you regularly return to – you might consider renting or even purchasing a winter home property. If so, you may be wondering what kind of paperwork to expect and how it must be prepared, especially in light of changes due to Brexit. This article will run through some of the most common requirements for a few prime winter holiday locations.

Switzerland and Austria are both popular destinations for skiing and winter sports, but there are several key differences in the process of buying or renting property in these two countries.

In Switzerland, there are a few restrictions on in which areas non-resident foreigners can buy property, but fortunately the permitted regions include popular tourist areas and ski resort locations, such as the cantons of Bern and Valais. Some additional regional regulations apply, but for the most part buying a holiday property in Switzerland is a matter of obtaining a Foreigner purchase permit, applying for a mortgage with a Swiss bank, and signing the deed. Foreigners do not usually have a problem getting a mortgage through a Swiss bank, although there are a few documents one needs to prepare to buy a winter home:

  • Proof of identity
  • Proof of salary
  • Tax Return (if you live in the UK, you can get this from HMRC)
  • Recent bank statements
  • Documents relating to the property

As a general rule, if you are not physically present in a country, it is necessary to certify a Power of Attorney to obtain and sign the necessary property documents, such as the sales documents and purchase permit; however, in Switzerland this is not usually called for, as typically you will be referred to a Swiss notary public who will act on your behalf in these matters.  

Any documents originating from the UK, such as pay slips, HMRC tax documents, bank statements, and passport or drivers licence copies (where applicable) will most likely need to be certified by a UK notary then apostilled by the Foreign, Commonwealth and Development Office (FCDO). By completing these steps, you ensure that the documents are recognised as fully legal and valid in Switzerland. 

If you choose to rent a winter home in Switzerland, you may have to provide your landlord with documents proving your age, marital status, profession, and salary, along with a copy of your passport. Some of these documents will require notarisation, while others, such as marriage certificates, decrees-absolute, or death certificates, can be apostilled straight away.

Buying in Austria is a bit more complicated; EU and EEA citizens can easily purchase property in Austria, but since the UK left the EU in January 2021, the process is no longer so straightforward. Non-EU/EEA citizens face stricter restrictions on where they can purchase property, and obtaining a mortgage from an Austrian bank as a foreigner can be quite difficult, since there is a requirement that at least part of the borrower’s income be issued in Euros.

If you are eligible to apply for a mortgage in Austria, the documents you will need to provide are much the same as for Switzerland, and should be prepared in the same way – notarisation as necessary and apostilles – as both countries are signatory to the Hague Convention.

Unlike in the case of Switzerland, you will probably want to certify a Power of Attorney (PoA) if you are intending to buy or rent in Austria. A PoA grants permission for an agent in another country (for instance, a lawyer, property agent, or even a friend or relative) to perform legal actions on one’s behalf – this means the agent could sign the Deed of sale or Lease agreement without you having to be in Austria in person.  

Although English remains a procedural language in the EU, landlords in Austria are well within their rights to ask for documents to be translated into German. It is a good idea to ask your potential landlord what they require, as this may have to be a certified translation or sworn translation.

At Pardus Bloom, we have a great deal of experience navigating the issues that have arisen post-Brexit in terms of document legalisation and we’re happy to help you through the process. We can arrange a range of services through our network of professionals, including notarisation, apostilles and translation and we can arrange to have your documents prepared as per your specific needs.

Perhaps you are looking for a winter home in the sun instead. Have a look at the second part of this article if you would like to know a bit about the documentation required in popular sunny destinations.

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