Buying Property in Switzerland as a Foreigner

Lex Koller is the informal name for the Swiss federal law that restricts the acquisition of residential real estate by persons abroad (Personen im Ausland). The law was introduced to prevent excessive foreign ownership of Swiss residential property and to protect the Swiss housing market from speculative foreign capital.

The law applies to the acquisition of residential property — not commercial property. It does not apply to the purchase of commercial real estate, industrial land, or business premises, which may be acquired by foreign nationals without restriction.

Enforcement is the responsibility of the competent cantonal authority. The canton in which the property is located assesses whether authorisation is required and, if so, whether it should be granted. Federal quotas set the maximum number of authorisations that may be granted nationally each year, with allocations distributed to each canton.

The law applies to persons abroad — defined as foreign nationals who are not resident in Switzerland, and in certain circumstances to foreign nationals who are resident in Switzerland but do not hold a qualifying residence permit.

The key distinction is between resident and non-resident buyers. A foreign national who is legally resident in Switzerland with a qualifying permit is generally treated differently from a non-resident foreign buyer. The type of residence permit held is material.

Swiss citizens are not subject to Lex Koller restrictions regardless of where they reside.

EU and EFTA nationals who are resident in Switzerland — holding a valid B or C permit — may generally acquire residential property in Switzerland on the same basis as Swiss citizens. They are not subject to Lex Koller restrictions for a primary residence.

EU and EFTA nationals who are not resident in Switzerland — non-residents — are subject to Lex Koller when acquiring a secondary residence or holiday property. The acquisition of a holiday home in a designated tourist zone requires cantonal authorisation, subject to the annual quota.

EU and EFTA nationals who are resident in Switzerland may acquire a secondary residence in certain circumstances without authorisation, but this depends on the specific canton, commune and property type. The rules are not uniform across Switzerland.

Non-EU and non-EFTA nationals face the most significant restrictions. A non-EU/EFTA national who is not resident in Switzerland generally cannot acquire residential property in Switzerland without authorisation under Lex Koller.

Non-EU/EFTA nationals who are resident in Switzerland and hold a valid B or C permit may acquire a primary residence without authorisation. However, the acquisition of a secondary residence or holiday property remains subject to Lex Koller restrictions even for permit holders.

Non-EU/EFTA nationals holding a Swiss C permit (settlement permit) are generally treated more favourably than B permit holders, but the rules vary by canton and by property type. Legal advice is essential.

A foreign national who is legally resident in Switzerland — holding a valid B or C permit — may generally acquire a primary residence (Hauptwohnsitz) without requiring authorisation under Lex Koller. The property must be used as the buyer's principal place of residence in Switzerland.

If the buyer subsequently leaves Switzerland or ceases to use the property as their primary residence, the property may be subject to a disposal obligation. The rules on what happens when a primary residence ceases to be used as such are complex and should be reviewed with a Swiss lawyer before acquisition.

The acquisition of a second residence or holiday home is the area most significantly affected by Lex Koller. Non-resident foreign buyers — and in many cases EU/EFTA non-residents — require cantonal authorisation to acquire a holiday property in Switzerland.

Authorisation is only available in designated tourist zones (Fremdenverkehrsgemeinden). Not all Swiss communes are designated tourist zones. In cantons such as Valais, Graubünden and Berne, a significant number of resort communes are designated tourist zones where holiday-home acquisitions by foreign nationals may be authorised.

In cantons such as Geneva, Zurich and Zug — which are primarily urban and residential rather than tourist destinations — the acquisition of a secondary residence by a non-resident foreign buyer is generally not possible under Lex Koller. These cantons are not designated tourist zones.

The number of authorisations available each year is limited by a federal quota. The federal government allocates a fixed number of authorisations to each canton annually. In practice, demand for authorisations in popular resort cantons — particularly Valais and Graubünden — frequently exceeds the available quota, and authorisations may not be available in a given year.

Switzerland is a federal state, and the application of Lex Koller varies significantly between cantons. Each canton administers the authorisation process and applies the federal rules within its own regulatory framework.

Canton Valais — which includes Verbier, Crans-Montana, Saas-Fee and Zermatt — has a significant allocation of holiday-home authorisations. However, demand is high and the quota is frequently exhausted. The canton applies strict conditions on the size and use of authorised holiday properties.

Canton Graubünden — which includes St. Moritz, Davos, Klosters and Flims — similarly has a tourist-zone designation for its resort communes. Authorisations are available but limited. The canton has its own specific rules on property size and use.

Canton Berne — which includes Gstaad and the Bernese Oberland — has a more limited tourist-zone designation. The Saanen commune (which includes Gstaad) is a designated tourist zone, but the quota is constrained and authorisations are not guaranteed.

Cantons Geneva, Vaud, Zurich and Zug are primarily urban and residential. Non-resident foreign buyers generally cannot acquire residential property in these cantons under Lex Koller. EU/EFTA nationals resident in Switzerland may acquire property in these cantons on the same basis as Swiss citizens.

Where authorisation is granted for a holiday property, the property is typically subject to restrictions on size. The federal law sets a maximum habitable floor area for authorised holiday properties — currently 200 square metres of net habitable area (Nettowohnfläche). Cantons may apply stricter limits.

Authorised holiday properties must be used as holiday homes by the buyer. They may not be used as a primary residence, and they may not be rented out on a long-term basis. Short-term holiday rental is generally permitted, but the rules vary by canton and commune.

The property may not be subdivided or resold to another foreign buyer without fresh authorisation. These restrictions are registered as a note in the land register (Grundbuch) and are binding on future owners.

Owning property in Switzerland does not grant Swiss residence rights. A foreign national who acquires property in Switzerland — whether as a primary residence or a holiday home — does not thereby acquire the right to reside in Switzerland.

Swiss residence permits are issued by the cantonal migration authorities on the basis of employment, family reunification, retirement, or other qualifying grounds. The acquisition of property is not itself a qualifying ground for a residence permit.

Some cantons — including Geneva and Vaud — have specific provisions for wealthy foreign nationals who wish to take up residence in Switzerland on a lump-sum tax basis (forfait fiscal). This is a separate process from property acquisition and requires coordination with the cantonal tax authorities.

Where authorisation is required, the application must be submitted to the competent cantonal authority before any purchase agreement is signed. A purchase agreement signed without the required authorisation is void.

The application is typically submitted by the buyer's Swiss lawyer, in coordination with the notaire handling the transaction. The application must include details of the buyer's nationality, residence status, the property, its intended use, and the purchase price.

The cantonal authority assesses the application against the federal criteria and the available quota. Processing times vary by canton but are typically several weeks to several months. In cantons where the quota is frequently exhausted, applications may be deferred to the following year.

Private Property Office coordinates the Lex Koller assessment as part of the acquisition mandate, working with established Swiss legal advisers to determine the applicable framework for each client's specific situation before any property search begins.

The interaction between the buyer's nationality, residence status, permit type, the property's location, its designation, its intended use, the canton's quota position, and the specific transaction terms means that no two Lex Koller assessments are identical.

Statements such as 'foreigners can buy property in Switzerland' and 'foreigners cannot buy property in Switzerland' are both misleading. The correct answer depends entirely on the specific buyer and the specific property.

The Lex Koller assessment must be completed before any property search begins. Identifying a property and then discovering that the buyer cannot acquire it is a significant waste of time and resources for all parties. Private Property Office assesses the Lex Koller position as the first step in every Swiss acquisition mandate.