Lex Koller: who can buy property in Switzerland?

Lex Koller regulates the purchase of property by foreigners in Switzerland: here’s what you need to know.

Dear readers,
Did you know that not everyone can freely buy property in Switzerland?
And that it depends on your passport, residence permit and even geographical area?
We present one of the most unusual (and long-standing) laws in the Swiss real estate sector: the Lex Koller.

What is the Lex Koller?

It is a federal law that regulates the purchase of property by foreign nationals.
In force since 1983 (with subsequent updates), it is named after the politician Arnold Koller and aims to limit the concentration of property ownership in the hands of non-residents in order to protect the local market.

Who is considered a “foreigner”?

According to the law, “foreigners” are:

• People without Swiss nationality
• Foreign citizens without a residence permit (C permit)

Please note: even European citizens with a B or L permit are subject to restrictions!

What does it actually restrict?

The Lex Koller does not prohibit purchases entirely, but regulates them with specific restrictions.
Here are the main ones:

1. Non-residents cannot freely purchase properties for permanent residential use.
2. It is possible to buy a holiday home, but only in authorised areas (and in limited numbers each year).
3. In some tourist areas, special licences are permitted, but these must be requested from the canton.
4. The purchase of commercial property (e.g. offices, premises, hotels) is generally permitted, even for foreigners.

Where can you buy a holiday home?

Some examples of areas where a foreign citizen can purchase a second home (with specific permits):

• Verbier
• Zermatt
• St. Moritz
• Crans-Montana
• Ticino: only in certain locations (not in Lugano city, for example)
  Each canton may have different rules, and quotas are limited.

Why does this law exist?

Because the Swiss market is stable, attractive and “safe”, and without regulations the risk would be:

• increased prices for residents
• empty houses bought solely as investments
• loss of social cohesion in urban and tourist centres

Tip of the month

If you are a foreigner and want to buy property in Switzerland:

• Check your legal status (permit C? B? None?)
• Check the cantonal rules
• Do not underestimate the authorisation procedures: they take time and attention

Conclusion

Don’t let the laws take you by surprise: get informed, plan ahead and carry out your property project in Switzerland with confidence. We are here to help you make the right choice.

Yours anfina