Advisory Guide

Buying Swiss Property Through a Company

A common question from international private clients is whether acquiring Swiss residential property through a Swiss company — an AG or GmbH — circumvents Lex Koller restrictions. The answer, in most cases, is no.

Advisory disclaimer: This page provides general information only and does not constitute legal advice. Corporate structures and their treatment under Lex Koller are complex. Always obtain independent legal advice from a qualified Swiss lawyer before proceeding.

Lex Koller and Legal Entities

Lex Koller was specifically designed to prevent circumvention through corporate structures. The law extends its restrictions to legal entities — including Swiss companies — that are controlled by persons abroad or in which persons abroad hold a significant interest.

The relevant provision of Lex Koller (Article 5 BewG) defines "persons abroad" to include:

  • —Legal entities with their registered seat abroad
  • —Swiss legal entities (AG, GmbH, etc.) in which persons abroad hold a majority of shares or voting rights
  • —Swiss legal entities in which persons abroad have a dominant influence
  • —Trusts and foundations controlled by persons abroad

This means that a Swiss AG or GmbH owned or controlled by a non-resident foreign national is treated as a "person abroad" for Lex Koller purposes. The company cannot acquire Swiss residential property any more freely than the individual who controls it.

Why the Company Structure Does Not Work

A Swiss AG or GmbH controlled by a non-resident foreign national is treated as a "person abroad" under Lex Koller

The company cannot acquire residential property in Switzerland without Lex Koller authorisation

The same restrictions apply to the company as would apply to the individual controlling it

Interposing a Swiss company between the foreign buyer and the property does not change the Lex Koller analysis

The cantonal authority looks through the corporate structure to the ultimate beneficial owner

Attempting to circumvent Lex Koller through a corporate structure may constitute a criminal offence

When a Company Structure May Be Relevant

While a company structure does not circumvent Lex Koller for residential property, there are circumstances in which a Swiss legal entity may be relevant to a property acquisition:

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Commercial property

Lex Koller generally does not apply to commercial real estate. A Swiss company may acquire commercial property without Lex Koller restrictions, regardless of who controls the company. However, the distinction between residential and commercial use must be carefully assessed.

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Company controlled by Swiss residents

A Swiss company in which the controlling shareholders are Swiss nationals or C permit holders (who are themselves exempt from Lex Koller) is not a "person abroad" and may acquire residential property without restriction.

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Inheritance and succession

In certain inheritance and succession scenarios, a company structure may be relevant to the transmission of Swiss property. Specialist legal advice is essential in these situations.

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Tax and estate planning

For buyers who are already exempt from Lex Koller (Swiss nationals, C permit holders, EU/EFTA B permit holders), a company structure may be relevant for tax or estate planning purposes. This is entirely separate from Lex Koller compliance.

Key Takeaway

International private clients who are subject to Lex Koller restrictions should not rely on a Swiss company structure as a means of acquiring Swiss residential property. The law specifically addresses this approach. The correct pathway for non-resident foreign nationals remains the holiday home route in designated tourist zones, subject to authorisation and quotas. Specialist Swiss legal advice is essential before structuring any acquisition.

Advisory

Swiss Private Group advises international private clients on Swiss property acquisition and can facilitate introductions to qualified Swiss lawyers and notaries.

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