As far as mountain resorts go, Andermatt has long been overshadowed by more famous Swiss destinations like Zermatt and Verbier. But in the past several months it has become increasingly popular with wealthy people from the United States.
Since Donald Trump was elected US president, and even more so once he took office in January, an increasing number of his (very) rich compatriots have been parking their assets in Switzerland.
This may seem like an obvious paradox, since high-income individuals tend to overwhelmingly prefer Republican administrations, which are more business and tax-friendly towards the wealthy.
Trump’s “aggressive policies,” however — as evidenced by the import tariffs — as well as unpredictable style, are causing uncertainty within the population (and wealthy Americans as well) about the evolution of the US economy.
As a result, since Trump’s inauguration, billions of dollars are believed to have flowed from the United States into Switzerland.
READ ALSO: Why are more and more wealthy Americans putting their money in Swiss banks?
One manifestation of the trend to invest money in the safety and stability of Switzerland, is that an increasing number of Americans are buying properties in Andermatt, a small resort in the canton Uri.
According to media reports, “since the beginning of the year, American buyers have purchased or reserved properties worth 14.2 million francs – almost double the amount of the entire previous year.”
Over 1,260 enquiries from the US were received in the first few months of the year, and a third of the sales took place in the week before Easter.
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Yes, but why Andermatt?
The reason may be that in 2022, an American company, Vail Resorts, purchased a 55-percent stake in Andermatt-Sedrun Sport AG, which controls and operates all of the resort’s mountain and ski-related assets, including lifts, most of the restaurants and a ski school operation.
Also, Andermatt has a major advantage over other municipalities: though most property purchases in Switzerland by foreign nationals are restricted, Andermatt is exempted, allowing foreigners to buy apartments and houses there freely.
What’s more, the law which limits the construction of second homes to 20 percent of a community’s housing stock, will not apply to Andermatt until 2040.
And because of the sudden high demand for properties, the prices are soaring.
One reported example is a buyer from New York, who recently purchased a two-bedroom flat for 2.2 million francs, and transferred his other assets to Switzerland as well.
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Wait…how can Americans live in Switzerland?
The US property investors may just be buying second homes or they could be moving to Switzerland, although it’s not easy.
As non-EU/EFTA nationals, Americans, like citizens of other third countries, can’t just settle in Switzerland at will.
However, the super-wealthy (as property buyers in Andermatt are) have a definite advantage: a little-known article of the law allows rich foreigners from outside the EU/EFTA to move to Switzerland, but only if they are sufficiently wealthy — which means they have sufficient financial means to live in Switzerland without having to work or resort to welfare benefits.
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