Anyone who owns a home and wants to pass it on to their children during their lifetime faces a central question sooner or later: How can I ensure that I continue living in my home even though I give up ownership? The answer lies in two legal instruments of the Swiss Civil Code: the right of residence and the usufruct. Both protect the previous residents but differ significantly in scope, obligations, and effects on financing. This guide explains the differences, outlines the bank’s position, and provides you with practical orientation for your planning.

When buying real estate in Switzerland, buyers frequently come across attractive offers with building rights. Unlike traditional full ownership, here you only acquire the building while the land remains the property of a third party. This arrangement has far-reaching consequences for the purchase price, ongoing costs, and the acceptance by financial institutions.