Why are American investors flocking to this village in the Swiss Alps?

Escalating global tensions over tariffs and the changing political landscape in the US under current President Donald Trump have prompted many Americans to consider alternative investment opportunities.

And according to foreign media, reports the Telegraph, because of these, a small ski village in the Swiss Alps, Andermatt, has seen a particular increase in "demand for accommodation".

This is mainly through the Andermatt Swiss Alps project, which includes apartments, hotels, restaurants and a golf course, built and managed by real estate developer Andermatt Swiss Alps AG.

Russell Collins, commercial director at Andermatt Swiss Alps AG, said in an emailed note: “Over the past 18 months, we have seen a significant increase in interest and transaction volume from US-based buyers in Andermatt,…”

He added: “If we consider that in 2023 we had no US-based buyers in Andermatt, the increase is significant.”

What is attracting American buyers to Andermatt?

In Switzerland, most property purchases are strictly regulated under the federal Lex Koller law, which restricts real estate purchases by foreign companies and individuals, requiring them to have a permit, among other things.

This is mainly to control the amount of foreign influence on the Swiss property market and to ensure that it still remains accessible to Swiss residents.

However, the Swiss Alps project Andermatt is largely exempt from these rules, mainly due to its size.

This means that foreign buyers are allowed to buy and sell houses and apartments freely, without needing approvals or adhering to holding periods.

This provides a level of access rarely seen in the Swiss property market.

“In my opinion, this change is being driven by a confluence of factors. Firstly, the development of Andermatt into a full-fledged year-round alpine destination is proving very attractive to international buyers,” Collins added.

"American demand in particular accelerated following the integration of the ski area with Vail Resorts, linking Andermatt with a brand that is known and trusted by the American market."

Collins also noted that Andermatt is increasingly being seen as a sustainable base for long-term stays, rather than just a ski holiday destination.

He explained: “Our American buyers tend to be drawn to Switzerland for its long-standing stability, neutrality and strong legal protections. There is also a strong lifestyle component: clean air, first-class healthcare and year-round outdoor activities – skiing, hiking, golf and cycling – are a significant draw.”

"In a world that feels increasingly insecure, Switzerland's reputation as a safe, civilized and well-governed country carries considerable weight."

Diversification of portfolio assets

Professor António Alvarenga, Professor of Strategy and Entrepreneurship at the Nova School of Business and Economics, noted that this move could indicate that American investors are trying to diversify their assets into real estate denominated in francs and euros.

He pointed out: “In addition to Alpine countries that promise a high quality of life (with natural beauty, strong infrastructure, and the opportunity to work remotely while earning a US salary), European communities battling declining rural populations are now offering generous incentives.”

“Examples include Albinen, Switzerland, where newcomers under 45 receive CHF 25,000 (€26,6059) for a ten-year stay; Italy, Spain and other countries similarly lure ‘digital nomads’ with cash payments and co-working facilities.”

Furthermore, the flexibility and ease of remote working has also added to the global trend of people moving overseas in search of a better lifestyle.

Graham Hill, real estate consultant at Find Hokkaido Agents, pointed out: "Many high-net-worth owners have always been able to work from home or relocate their businesses to tourist communities."

"The new trend for working from home has created a new dynamic, as it allows more dual-income couples to move away from urban areas, creating conditions where couples can choose to live and work in tourist communities, even when two jobs or careers are involved."

Speaking about other Swiss regions that could see similar demand from Americans, Andrew Fortune, real estate agent and owner of brokerage Great Colorado Homes, noted: “Regions like Verbier, Zermatt and Gstaad could become increasingly popular with Americans. Verbier and Zermatt stand out because of their legendary ski resorts, while Gstaad attracts those seeking a luxurious and sophisticated lifestyle.”

"Then there's Lugano, closer to Italy, which appeals to people who prefer milder weather, scenic beauty, and favorable tax conditions. Each of these places has its own unique charm and practice."

Can this move really protect Americans from Trump's policies?

While relocating to a Swiss ski village may seem like an attractive solution, given the current geopolitical environment, challenges such as U.S. tax laws may still remain.

Stewart Koesten, chairman at Aspyre Wealth Partners, said: “The issues surrounding income tax are unique to Americans because citizens are taxed on their income regardless of where they live. So if an American moves to Switzerland, then earns income as a nomad or business owner, his income from both the US and Switzerland will be taxable.”

In addition, Americans moving to Switzerland who still have some assets at home may not be completely immune to Trump's policies.

Similarly, if these tariffs cause a major recession in the US, it could turn into a global recession, which could also affect Switzerland. /Telegraph/