Swiss Residence
Lex Koller is the Swiss legal framework regulating the acquisition of real estate by persons abroad. It is particularly relevant for foreign buyers, non-residents, non-EU/EFTA nationals, certain permit holders and foreign-controlled structures.
Compliance notice: Lex Koller analysis must be performed before any transaction. Clients should not rely on general online information when deciding whether they can acquire Swiss property. Individual legal review by a qualified Swiss notary or lawyer is mandatory.
Lex Koller (formally: Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland, BewG — Federal Act on the Acquisition of Real Estate by Persons Abroad) is the Swiss federal law that restricts the ability of foreign nationals and foreign-controlled entities to acquire Swiss residential real estate.
The law was introduced to prevent excessive foreign ownership of Swiss residential property and to protect the Swiss housing market. It has been in force in various forms since the 1960s and continues to be a central feature of Swiss property law.
Lex Koller defines "persons abroad" (Personen im Ausland) broadly. The category includes: foreign nationals who are not resident in Switzerland; foreign nationals who hold a Swiss residence permit but whose permit does not exempt them from Lex Koller; Swiss legal entities (AG, GmbH) in which persons abroad hold a majority of shares, voting rights or dominant influence; foreign legal entities; trusts and foundations controlled by persons abroad. The law looks through corporate structures to the ultimate beneficial owner.
Residence status is the primary determinant of Lex Koller exposure. Swiss nationals and C permit holders are fully exempt. EU/EFTA B permit holders resident in Switzerland have partial exemption for a primary residence. Non-EU/EFTA B permit holders face more restrictions. Non-resident foreign nationals are subject to the full force of Lex Koller and may generally only acquire a holiday home in a designated tourist zone, subject to authorisation and quotas.
Lex Koller distinguishes between different types of property. A primary residence acquired by a qualifying permit holder for personal use is treated differently from an investment property. Investment properties — properties acquired for rental income or capital appreciation — are generally subject to stricter restrictions for foreign buyers. Commercial real estate is generally outside the scope of Lex Koller.
C permit holders (settlement permit) are fully exempt from Lex Koller and may acquire any residential property in Switzerland without restriction. B permit holders (temporary residence permit) have more limited rights. EU/EFTA B permit holders resident in Switzerland can generally acquire a primary residence. Non-EU/EFTA B permit holders face additional restrictions and individual review is required.
Non-resident foreign nationals may generally only acquire a holiday home in a designated tourist zone, subject to cantonal authorisation and annual quotas. Size limits apply (approximately 200 m² living space and 1,000 m² land). The property must be used as a holiday home. Only one authorisation per person is generally available. Cantons without tourist zones (Geneva, Zurich, Basel) are effectively closed to non-resident foreign buyers.
Where Lex Koller authorisation is required, the application is submitted to the competent cantonal authority (typically the cantonal justice or economic affairs department). The notary handling the transaction manages the authorisation process. Authorisation is subject to conditions and may be refused. Annual quotas apply in tourist zone cantons.
Holiday homes acquired under Lex Koller authorisation are subject to conditions: the property must be used as a holiday home; it may not be rented out on a long-term basis; size limits apply; the buyer may not acquire a second Swiss holiday home. The Weber Act (Zweitwohnungsgesetz) also applies — in communes where second homes already exceed 20% of total housing stock, new second home construction is prohibited.
Commercial real estate is generally outside the scope of Lex Koller. However, the distinction between residential and commercial use must be carefully assessed. Mixed-use properties, properties with residential components and properties acquired through structures require individual legal review.
Strong compliance note
Lex Koller analysis must be performed before any transaction. Clients should not rely on general online information when deciding whether they can acquire Swiss property.
Swiss Private Group can coordinate introductions to qualified Swiss legal and real estate professionals for case-specific review.
Swiss Residence
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Swiss Private Group coordinates introductions to qualified Swiss lawyers and notaries for Lex Koller review and property transactions.
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Important information
The information on this page is provided for general informational purposes only and does not constitute legal, tax, immigration, financial or investment advice. Swiss residence, residency, taxation and real estate acquisition rules may change and may vary depending on nationality, canton, permit status, personal circumstances, source of funds and intended property use. Clients should consult qualified Swiss professionals before making decisions. Swiss Private Group is not a law firm, tax advisory firm, fiduciary, bank, immigration agency or government authority. Where required, Swiss Private Group may coordinate introductions to independent qualified professionals.