Founding a real estate company in Switzerland: Requirements and opportunities

With its stable economy and high quality of life, Switzerland offers an attractive market for real estate companies and presents numerous opportunities, but also requires extensive preparation and knowledge of the real estate industry.

In this article, we take a look at the necessary requirements for founding a company, the most suitable forms of business and the future and challenges of the Swiss real estate market.

What services can a real estate company offer in Switzerland?

Real estate companies (also known as real estate agencies) in Switzerland provide comprehensive property-related services including brokerage, valuation, property management, and project development. The specific services you offer will depend on your business model and target market.

Beyond basic buying and selling, real estate firms can specialize in areas such as:

• Real estate brokerage
• Real estate valuation
• Marketing campaigns to promote real estate
• Legal and financial advice in connection with real estate transactions
• Sales negotiations
• Real estate management
• Project development
• Market analysis and research

Each service area requires different expertise and may have specific regulatory requirements. Overall, real estate companies offer a wide range of services to help customers buy, sell, rent and manage properties. Before you set up your real estate company, you should set out in your business plan what direction you want your company to take in the future and research the competition in this area.

What requirements do I have to meet to set up a real estate company in Switzerland?

To establish a real estate company in Switzerland, you must register with the commercial register (generally mandatory for most corporate forms), comply with any cantonal authorization requirements if offering brokerage services, and ensure adequate financial stability. While specific professional licenses aren’t required for many real estate activities, relevant qualifications significantly improve your success prospects.

The specific requirements vary depending on your chosen activities and company form. A specific license may only be required for real estate agents in certain cantons and for defined brokerage activities. Unlike the HR sector, professional experience is not a legal prerequisite for setting up a company, but it is a great advantage.

Legal and administrative requirements

One of the basic legal steps is the formation of a company. Registration in the commercial register is mandatory for many types of company in Switzerland, especially corporations such as GmbHs and AGs. This entry gives the company a legal identity and ensures that it can do business in Switzerland. However, there are exceptions, such as sole proprietorships with an annual turnover of less than CHF 100,000, for which registration is not mandatory.

In the rest of the article, we will discuss which company forms are suitable for a real estate company.

To run a successful company, you also need to familiarize yourself with the administrative tasks of a managing director. This includes proper accounting, compliance with tax obligations and the management of contracts and documents.

Did you know that you can outsource your accounting to Nexova?

Broker authorization for property brokerage and management

If your real estate company intends to broker properties, you are acting as a real estate broker, and — depending on the canton and the nature of your activity (in particular rental brokerage or management of third-party properties) — a cantonal authorization may be required. Please note that such authorization is issued at the cantonal level and generally only applies to the specific canton in which you operate. If you plan to act as a broker in multiple cantons, you should review the applicable requirements and rules in each canton to ensure that you are operating lawfully in all locations.

Professional qualifications

No specific licenses or permits are required to set up a real estate company. However, appropriate qualifications and knowledge in the fields of real estate, construction, finance and law are crucial for the success of your company. These can be acquired through studies or training and practical experience.

A strong network in the industry and knowledge of local market conditions are also an advantage for your business success.

Financial stability

Financial stability is another cornerstone for the success of a real estate company. A capital contribution is also a basic requirement for founding a GmbH or AG. A public limited company (AG) requires a minimum capital of CHF 100,000, while a limited liability company (GmbH) can manage with CHF 20,000.

Beyond these statutory minimums, you also need start-up capital for office equipment, employees and marketing activities. How much this capital needs to be depends on your company’s business model.

Banks and investors also often require proof of creditworthiness and collateral in order to minimize the financial risk.

What permits are required for construction projects in Switzerland?

All construction projects require permits from cantonal or municipal building authorities, along with compliance with local building codes and SUVA occupational health and safety standards.

The application process involves submitting building plans and demonstrating compliance with local building regulations and standards specific to your canton and municipality. Timelines and specific requirements can vary significantly by location.

Workplace safety is heavily regulated in Switzerland, so it is also important to comply with the legal regulations on occupational health and safety. This includes providing safe working conditions and complying with SUVA regulations.

Can I set up a real estate company in Switzerland as a foreigner?

As a foreigner, you are generally allowed to set up a company in Switzerland if you meet certain requirements and comply with the legal provisions. Here are the most important points:

Residence permit: You need a valid residence permit in Switzerland that allows you to work in Switzerland either as a self-employed or employed person. The exact type of permit depends on your nationality, your professional qualifications and the planned activities.

Managing director or local representative: Depending on the legal form of your company, it may be necessary for you to have a managing director resident in Switzerland or an authorized representative to represent your company locally.

Compliance with Lex Koller: Lex Koller regulates the acquisition of real estate by foreigners in Switzerland. If your real estate company is directly involved in the acquisition of real estate (e.g. purchase and sale of real estate), you must comply with the provisions of Lex Koller, as foreigners generally require specific permits.

Read more about how to set up a company in Switzerland as a foreigner here.

What are suitable company forms for a real estate company?

The choice of company form is the starting point of your start-up and determines the direction your entrepreneurial activities take. Will you open an independent real estate agency and choose sole proprietorship or will you build a real estate empire and go public?

In Switzerland, there are several options available to you, which offer advantages and disadvantages depending on the scope and objectives of the company.

Public limited company (AG)

Larger real estate companies generally prefer the public limited company (AG). This requires a minimum capital of CHF 100,000, of which at least CHF 50,000 must be paid up.

An AG offers the advantage of limited liability, which means that shareholders are only liable with the capital they have contributed. This structure is popular with investors due to its transparency and good financing options.

In addition, a public limited company can issue shares and therefore raise capital more easily, making it ideal for larger and riskier construction or purchase projects.

Limited liability company (GmbH)

The GmbH is a flexible and widely used form of company that requires a minimum capital of CHF 20,000. It also offers limited liability and is well suited for small to medium-sized real estate projects.

The formation of a GmbH is less complex and costly than that of an AG. Another advantage of the GmbH is the simpler administrative structure, which makes it attractive for smaller companies.

Sole proprietorship

A sole proprietorship can be an option for very small real estate transactions or as an entry into the real estate market. This type of company does not require any minimum capital, but the owner is liable with all of his or her private assets.

It is more suitable for estate agents or small renovation projects where the financial risk is manageable. Setting up and running a sole proprietorship is uncomplicated and inexpensive.

General partnership and limited partnership

These company forms are suitable for partnership-based real estate projects. In a general partnership, all partners have unlimited liability, while in a limited partnership at least one partner has limited liability.

These forms offer flexibility in management and are suitable for projects in which several partners work together. The choice of company form depends on the specific needs and objectives of the company. We will advise you free of charge on which company form suits your project.

Why set up a real estate company in Switzerland?

Switzerland’s stable economy, high quality of life, and continuous demand for residential and commercial properties make it an attractive market for real estate companies. 

According to the Swiss Federal Statistical Office (FSO), Switzerland’s population grew by 83,392 residents through net immigration in 2024, driving sustained housing demand (interestingly, this marked a 15.6% decrease in net immigration from the 98,851 in 2023). This demographic pressure combines with economic prosperity to create rising demand for residential and commercial real estate across the country.

Cities such as Zurich, Geneva and Basel are recording constantly rising real estate prices, while rural areas are also becoming increasingly important as remote work patterns shift housing preferences.

Switzerland’s political and economic stability contributes to the attractiveness of the market and offers investors and companies a reliable basis for their activities in the real estate sector.

Opportunities and potential

The real estate market in Switzerland offers numerous growth opportunities. In the residential real estate sector, there is high demand for condominiums and single-family homes.

Urban centers are experiencing a sustained influx, which is increasing demand for residential space. The market for commercial real estate is also showing positive trends, particularly in economically strong regions.

Another growth area is sustainable and energy-efficient construction. Switzerland attaches great importance to environmental standards and sustainability, which favors innovative construction projects. This offers entrepreneurs the opportunity to gain market share by constructing environmentally friendly buildings and at the same time make a positive contribution to the environment.

Challenges

Despite the many opportunities, there are also challenges. The Swiss real estate market is highly regulated, and complying with the numerous building regulations and strict environmental requirements can be complex and time-consuming.

Competition is also intense, especially in metropolitan areas. As a start-up, you have to hold your own against established competitors and develop innovative approaches in order to stand out.

Market risks such as interest rate fluctuations and economic uncertainties can also have an impact on the success of your real estate company. A thorough market analysis and risk assessment are therefore essential in order to exploit undiscovered potential in the real estate market.

Future prospects

The Swiss real estate market faces mixed signals, with continued demand driven by stable demographics and economic strength, but with concerns about overvaluation in certain urban segments. Digital transformation, smart buildings, and sustainability are reshaping competitive dynamics.

While forecasts indicate that demand for real estate will continue to rise, driven by the stable economic environment and high quality of life, according to the 2025 UBS Global Real Estate Bubble Index, there are ongoing concerns about overvaluation in major Swiss cities, with the index indicating elevated bubble risk in Zurich and Geneva.

However, it is undeniable that digitalization, smart homes and sustainable construction are omnipresent trends that will shape the market in the coming years. Companies that position themselves at the forefront of these developments will have a competitive advantage.