Buying real estate in Switzerland as a foreigner: "Lex Koller" creates restrictions

Fri, 09/18/2020

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A Swiss law regulates the acquisition of real estate by people abroad and has successfully prevented high foreign influence since 1983.

A chalet in the Alps, a luxury villa or an apartment in a prime location on Lake Geneva: As a foreigner, have you ever considered buying a vacation home or a second home in Switzerland? Then you have come across the bulky name "Lex Koller". The regulation, named by swiss politician Arnold Koller, prevented foreigners from buying real estate as an investment. While the rental of real estate is not regulated in the law, real estate purchase by non-Swiss citizens is only possible with restrictions. Switzerland has always been a country with its own rules, but there are still opportunities.

Real Estate Purchase in Switzerland as a Foreigner

1. Move to Switzerland

If you are a citizen of the EU or EFTA (European Free Trade Association), you have the same rights as Swiss citizens when purchasing real estate. As long as you have your main residence in Switzerland and also live in it yourself, you can buy as many properties as you like.

The following applies to all citizens from third countries: You need a valid residence permit and you must live in the property you have bought. If you purchase a piece of land or a building site in Switzerland, the development must take place within one year.

However, you always need a permit to purchase holiday apartments or second homes.

2. The property has a commercial or economical use

There are numerous prestigious properties in Switzerland that are used commercially: For example, if you want to buy a grand hotel or a castle as an investor and commercial use is or is being sought, you do not need a permit. The same applies to mixed use, i.e. if you also live in the commercial property yourself.

3. Switch to neighboring countries

The lack of a welcoming culture in Switzerland means that many property buyers are now switching to neighboring countries: Currently in France, Italy or Austria, conditions and prices are often worth a comparison, although prices have also risen sharply there.

If you intend to buy a house or villa in Switzerland anyway, you should first contact the responsible authorities, as the law is subject to regular deviations and changes, depending on the current government. The land registry inspector will then check whether the necessary requirements have been met or whether a permit is required.

Maybe the inspiration we show on Lake Maggiore doesn't have to be a dream for you. In the ranking of the "Best Countries for Retirement", Switzerland regularly takes a place in the top 10 ranking.