The acquisition of real estate in Switzerland by foreign individuals is subject to certain restrictions established by the federal law on the acquisition of properties by foreigners, also known as Lex Koller, and its implementing ordinance. This article explores in detail the conditions governing the purchase of properties by foreigners in Switzerland and the different categories of individuals affected by this legislation.
Who is subject to the law on the acquisition of properties in Switzerland? According to the federal law, « persons abroad » refer to foreigners domiciled abroad and foreigners domiciled in Switzerland, but who are not nationals of countries that are members of the European Community (EC) or the European Free Trade Association (EFTA), and who do not possess a valid settlement permit C (such as holders of a permit B, for example). However, Swiss citizens (including dual nationals, whether domiciled in Switzerland or abroad), citizens of the EC or EFTA with a legal and effective residence in Switzerland (usually holders of a permit B or C), as well as foreigners with a valid permit C and effectively domiciled in Switzerland, are not subject to this law.
Acquiring a primary residence in Switzerland: Citizens of a European Union member state who have a legal and effective residence in Switzerland (permit B or C), as well as foreigners domiciled in Switzerland with a permit C, can freely acquire a primary residence in Switzerland, whether it be an apartment, a detached house, or building land. This rule also applies to the acquisition of real estate for investment purposes, allowing foreigners to participate in the Swiss real estate market under certain conditions.
Conditions for the acquisition of property by foreigners residing in Switzerland: Foreigners residing in Switzerland, but who are not nationals of an EC or EFTA member state and hold a permit B (or equivalent), can acquire property without authorization, provided that the property becomes their primary residence. To do so, the buyer must personally reside in the property with the intention of establishing a permanent residence, without renting it, even partially. Additionally, the surface area of the property must not exceed a threshold where the acquisition would be considered a capital investment. Beyond 3000 m2, a competent authority will decide if the acquisition is subject to federal law.
Second homes and vacation homes: The acquisition of a second home or vacation home does not require authorization for citizens of the EC domiciled in Switzerland (permit B or C) and foreigners with a permit C and domiciled in Switzerland. However, for other foreigners subject to the law, the cantons have the option to legislate on the acquisition of second homes, but the canton of Geneva has not exercised this option. As for vacation homes in tourist areas, the acquisition is possible under certain strict conditions, depending on federal and cantonal laws.
Alternatives for foreigners residing abroad: Foreign individuals domiciled abroad have the option to acquire properties intended for economic activities, such as offices, hotels, shops, warehouses, etc. These properties can be acquired without authorization, whether for personal use or as capital investments. Additionally, in areas where there is a shortage of housing, a person abroad may be authorized to acquire a property for the construction of socially-oriented housing, subject to certain conditions defined by the cantons.
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