Buying in Megève from Switzerland: legal framework, taxation, financing.
The acquisition of property in Megève by a Swiss resident is not subject to any authorisation regime. The LFAIE (Lex Koller) and the Second Homes Act (Lex Weber), which govern property acquisition on Swiss territory, have no application in France: a Swiss resident acquires a second home there under the same conditions as a French resident, irrespective of nationality. The specific features of a cross-border acquisition concentrate on three areas — the Franco-Swiss tax treaty framework, ownership structuring, and financing — all of which are addressed ahead of the preliminary contract. The Lake Geneva region is the resort’s primary buyer base: 35% of ARES’s clientele resides there. Our office on rue du Rhône, Geneva, allows these transactions to be conducted on both sides of the border, in coordination with notaires and tax counsel.
Megève’s position for Lake Geneva residents
Megève is one of the closest resorts to Geneva: approximately 70 km via the A40 motorway, one hour from central Geneva and from the airport alike. This proximity places a property in the weekly-use category rather than the seasonal one — a determining factor in long-term value. The presence of Geneva families in Megève is, moreover, long-standing and structural, predating the current Swiss restrictions on second homes by several decades.
Inapplicability of the Swiss restrictions (LFAIE / LRS)
Two federal statutes govern property acquisition in Switzerland: the Federal Act on the Acquisition of Real Estate by Persons Abroad (LFAIE, known as Lex Koller), which subjects acquisitions by persons abroad to authorisation, and the Second Homes Act (LRS, known as Lex Weber), which caps second homes at 20% of each commune’s housing stock. Both are strictly territorial in scope. For an acquisition in Megève, it follows that there is:
- no prior authorisation, whatever the buyer’s nationality or residence;
- no second-home quota;
- no obligation as to occupation, letting, or holding period.
Taxation of a Swiss resident owning French property
The treaty framework is long-established: the Franco-Swiss convention of 9 September 1966 on income and wealth taxation. The principal points of attention:
Holding. French real-estate wealth tax (IFI) applies to non-residents on net French real-estate assets exceeding €1.3M. The treaty allocates taxation of real-estate wealth to the state where the property is situated; cantonal wealth taxation takes this into account under the rules of the canton of residence.
Rental income. Rental income from a property situated in France is taxable in France.
Capital gains on disposal. Taxed in France, with taper relief over the holding period leading to full income-tax exemption after 22 years and social-levy exemption after 30 years. Sellers affiliated to Swiss social security qualify, subject to conditions, for a reduced solidarity levy in place of the standard social charges.
Estate planning. The 1953 Franco-Swiss inheritance convention was terminated by France with effect from 1 January 2015. In the absence of a treaty, French transfer duties apply under domestic rules, with double-taxation exposure varying by canton. Ownership structuring — direct acquisition, société civile immobilière, division of ownership — is examined accordingly, before the acquisition.
These elements are general in nature and do not constitute tax advice. Each transaction is reviewed with the instructing notaire and, where appropriate, the buyer’s tax counsel in France and Switzerland; we coordinate these advisers from the pre-contract stage.
Financing the acquisition
Completion takes place in euros, by authentic deed before a French notaire. Three usual routes: acquisition from own funds; a loan from a French institution, several banks lending to Swiss residents under their own criteria for assessing Swiss-franc income; or private-bank financing secured on existing assets — a frequent structure for wealth already banked in Geneva. CHF/EUR exposure is addressed at offer stage. We direct clients to the competent institutions without acting in their place.
Access
Geneva–Megève: approximately 70 km via the A40, one hour from the city centre and from Geneva International Airport. Megève’s altiport serves private aviation.
The Geneva office
Most of our Lake Geneva files open in Geneva. The rue du Rhône office allows us to receive buyers locally, qualify a search in full confidentiality, and present — individually, under a confidentiality undertaking — properties never publicly listed: 60% of the ARES portfolio is sold off-market (ARES observatory). ARES operates under the practices of both jurisdictions — régie on the Swiss side, licensed agency on the French side — with a team working in French, English and Russian.
Describe your search to us: we will receive you in Geneva or in Megève and come back to you within 24 hours, in full confidentiality.
Frequently asked questions
- Can a Swiss resident freely buy property in Megève?
- Yes. The LFAIE (Lex Koller) and the LRS (Lex Weber) are territorial in scope, limited to Switzerland. An acquisition in France requires no authorisation and is subject to no quota, whatever the buyer’s nationality or residence.
- Does Lex Weber restrict second homes in Megève?
- No. The 20% cap on second homes per commune stems from a Swiss statute and has no effect in France. French law does not restrict second homes.
- How long is the journey from Geneva to Megève?
- About one hour via the A40 motorway (roughly 70 km), from central Geneva and from the airport alike.
- Is a French bank account required?
- No. The price is paid in euros through the notaire’s account. French or private-bank financing may however call for a dedicated banking relationship.