Legal basis: The Lex Koller law
Lex Koller, named after Federal Councilor Koller, is a Swiss law that prevents certain foreign non-residents from buying property in Switzerland. The primary objective of the law is to limit foreign ownership of Swiss land. Under Lex Koller, real estate falls into two main categories: residential and commercial, each with its own set of rules.
Overview: Who can buy property in Switzerland?
Swiss citizens: All types of properties
UK nationals living in Switzerland: All types of properties
EU/EFTA nationals living in Switzerland: All types of properties
Non-EU/EFTA nationals living in Switzerland with a C permit: All types of properties
Non-EU/EFTA nationals living in Switzerland with a B permit: Primary residence or building land (no permit needed); Holiday homes (with permission)
Non-residents (foreigners living abroad): Commercial properties; Secondary residences and holiday homes in designated tourist zones (with quotas and authorization)
Who can buy commercial property in Switzerland?
Commercial properties are exempt from Lex Koller regulations, which means that any non-resident may freely buy office buildings, retail spaces, hotels, industrial properties, and other commercial properties without requiring a special permit. When a property has both residential and commercial uses, such as a hotel with employee apartments, the predominant use determines the applicable regulations.
Who can buy residential property in Switzerland?
EU/EFTA nationals living in Switzerland and those with a permanent residence permit (C permit) can purchase residential properties without any special approval, much like Swiss citizens. UK nationals residing in Switzerland enjoy the same rights as EU/EFTA nationals due to the Agreement on Acquired Citizens' Rights.
Non-EU/EFTA nationals residing in Switzerland need permission to buy specific types of properties. These include holiday homes, which can be rented out temporarily; units in serviced apartment buildings; and second homes, which cannot be rented out. However, no permit is needed to buy a primary residence or building land if the buyer has at least a B permit.
Foreigners who do not reside in Switzerland cannot buy secondary residences unless they are in designated tourist zones, where purchases are subject to quotas. Non-Swiss nationals living abroad, except for cross-border commuters, always require authorization to purchase property.
Purchasing shares in a real estate company or investment fund
Swiss real estate companies and investment funds have an important exception under Lex Koller. If a real estate company is listed on a Swiss stock exchange, its shares can be purchased freely without falling under Lex Koller restrictions. However, if the company is not listed and focuses on acquiring or holding residential or other non-commercial properties, non-Swiss nationals are prohibited from buying its shares.
Conclusion: Lex Koller law and who can buy property in Switzerland
In conclusion, the Lex Koller law plays a crucial role in regulating foreign ownership of Swiss real estate, and thus who can buy property in Switzerland. While any non-resident can freely acquire commercial properties without restrictions, the purchase of residential properties is tightly controlled, especially for non-EU/EFTA nationals and non-residents. This law ensures that Swiss land remains predominantly in the hands of locals and permanent residents.
