Who Can Buy Property in Switzerland? Understanding the Lex Koller Law

Discover who can buy property in Switzerland under the Lex Koller law. Learn the rules for Swiss citizens, EU/EFTA nationals, non-EU residents, and foreigners abroad, including restrictions on residential and commercial real estate.

Introduction: Buying property in Switzerland

Switzerland’s real estate market is attractive to international buyers, but strict regulations define who can buy property in Switzerland. The key framework is the Lex Koller law, which limits foreign ownership of residential real estate. Below, we break down the rules, exemptions, and what they mean for potential buyers.

The Legal Framework: Lex Koller

The Lex Koller law was introduced to limit foreign ownership of Swiss land and ensure that real estate remains largely in the hands of residents. The law divides property into two categories:

• Residential property – tightly regulated for foreign buyers.
• Commercial property – exempt from restrictions.

Who Can Buy Property in Switzerland?

Swiss citizens

• No restrictions: free to purchase any type of property.

Foreign residents

• EU/EFTA nationals living in Switzerland: Same rights as Swiss citizens.
• UK nationals residing in Switzerland: Treated like EU/EFTA nationals due to bilateral agreements.
• Non-EU/EFTA nationals with a C permit: Can buy without limitations.
• Non-EU/EFTA nationals with a B permit:
  • Can buy a primary residence or building land without a permit.
  • Can purchase holiday homes with special authorization.

Non-residents (foreigners living abroad)

• Can freely acquire commercial property.
• May buy holiday homes or second residences only in designated tourist areas, subject to quotas and approval.
• Not permitted to buy residential property

Buying Commercial Property in Switzerland

Unlike residential property, commercial real estate is open to all buyers, regardless of nationality or residence status. Office buildings, retail spaces, hotels, or industrial properties can be purchased without restriction.

If a property has both residential and commercial uses—like a hotel with staff apartments—the primary purpose of the building determines whether Lex Koller applies.

Residential Property Rules for Foreigners

• EU/EFTA nationals and UK residents in Switzerland can buy homes as easily as locals.
• Non-EU/EFTA nationals with residence permits face more limits but can still own a main residence.
• Non-residents abroad can only buy holiday homes in specific tourist regions, never any other type of residential property

Shares in Real Estate Companies and Funds

Another path to property exposure is through real estate companies or investment funds. Under Lex Koller:

• Shares in publicly listed Swiss real estate companies can be purchased without restriction. 
• Shares in private companies focusing on residential property cannot be acquired by foreigners.

Conclusion: Who Can Buy Property in Switzerland?

The answer depends on nationality and residence status. While Swiss citizens and most residents face few barriers, non-resident foreigners are limited mainly to commercial property and tourist-area holiday homes. The Lex Koller law ensures that residential ownership stays primarily in the hands of locals and long-term residents.

For international buyers, this means that while opportunities exist, especially in the commercial sector, careful planning and legal advice are essential before investing.