Lex Koller: Can Foreigners Buy Property in Switzerland? Complete Guide (2026)

Every year, thousands of wealthy foreigners look at Switzerland and ask the same question: Can I buy a house there?

The answer is: it depends. Switzerland is not a country where money alone opens the door to property ownership. A complex federal law — the Lex Koller — governs who may purchase real estate, under what conditions, and with what restrictions. Understanding this law is essential before you engage a notary, sign a reservation agreement, or wire a deposit.

This guide explains the Lex Koller in plain language, covers every major exception and restriction, and outlines the practical steps for foreign buyers who do have the right to purchase.

What Is Lex Koller?

The Lex Koller is the common name for the Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland (BewG) — the Federal Act on the Acquisition of Real Estate by Persons Abroad. It was enacted in 1983 and has been amended several times since.

The law's stated purpose is to prevent Überfremdung — the foreign domination of Swiss land. In practice, it ensures that Swiss residential real estate remains primarily in the hands of residents, preventing speculative purchases by non-residents that could drive up prices and reduce housing availability for the domestic population.

Lex Koller applies uniformly across all 26 cantons. It is federal law, not cantonal. However, enforcement and interpretation vary meaningfully from canton to canton — a point we will return to below.

Who Can Buy Property Freely?

The following categories of buyers face no Lex Koller restrictions when purchasing residential property in Switzerland:

• Swiss citizens — regardless of where they reside.
• Dual nationals holding Swiss citizenship — the second nationality is irrelevant.
• EU/EFTA nationals with a valid C permit (settlement permit / Niederlassungsbewilligung). The C permit grants you the same real estate rights as a Swiss citizen. You may buy primary residences, second homes, and investment properties without authorization.

The C permit is typically issued after 5–10 years of continuous residence in Switzerland, depending on your nationality and the bilateral agreements in effect.

Who Can Buy — With Restrictions?

B permit holders (residence permit / Aufenthaltsbewilligung) may purchase one property for personal use as a primary residence. This applies to both EU/EFTA and non-EU/EFTA nationals holding a valid B permit.

The restrictions are significant:

• Primary residence only. You cannot buy a second apartment to rent out or a holiday chalet in the Alps.
• One property. If you already own a residential property in Switzerland, you cannot purchase another one under the B-permit exemption.
• Personal use. You must actually live in the property. Buying a primary residence and then subletting it is a violation that can result in forced sale.
• Location. The property must be in the canton where you hold your residence permit (some cantons allow purchase in adjacent municipalities).

B permit holders who wish to purchase still require cantonal authorization, but approval is largely routine for genuine primary-residence purchases.

Who Cannot Buy?

Lex Koller explicitly prohibits the following groups from purchasing Swiss residential property:

• Non-residents — regardless of nationality. A German citizen living in Munich cannot buy an apartment in Zürich.
• Non-EU/EFTA nationals without a C permit — a US, UK, or Chinese citizen holding a B permit can buy a primary residence (see above), but nothing beyond that.
• B permit holders seeking investment properties — rental apartments, commercial-residential mixed-use buildings for investment, and second homes are all prohibited.
• Foreign-controlled entities — a BVI company or a Dubai-registered holding cannot purchase Swiss residential real estate. Anti-avoidance provisions (Art. 4a BewG) pierce corporate structures designed to circumvent Lex Koller.

Holiday Homes: The 1,500-Permit Regime

Switzerland does allow non-residents and restricted buyers to purchase holiday homes (Ferienwohnungen) — but under an extremely limited quota system.

The Rules

• Approximately 1,500 cantonal permits are issued per year across all of Switzerland. Each canton receives an allocation.
• Maximum 200m² net living space. You cannot buy a 400m² villa as a "holiday home."
• Designated tourist zones only (Tourismuszonen). The property must be located in a municipality that the canton has officially designated as a tourist zone. The most common cantons for holiday-home permits are Valais (Verbier, Crans-Montana, Zermatt), Graubünden (St. Moritz, Davos, Klosters), and Ticino (Lugano surrounds, Ascona).
• Personal use required. You may rent out the property short-term (up to a cantonal limit), but it must remain primarily for your personal use.

The Second Home Initiative (Zweitwohnungsinitiative)

Since 2012, the Swiss constitution limits new second-home construction in municipalities where second homes exceed 20% of the housing stock. This "Weber Initiative" has drastically reduced the supply of new-build holiday apartments in popular Alpine resorts and pushed prices for existing permitted units sharply higher.

For foreign buyers, this means: the pool of eligible holiday-home properties is shrinking, and competition for permitted units is intense.

Key Exceptions to Lex Koller

Several categories of real estate are exempt from Lex Koller restrictions:

• Commercial and industrial properties. A foreign company may purchase office space, a factory, a warehouse, or a hotel. The restriction applies only to residential property.
• Swiss-incorporated companies. A company incorporated in Switzerland and controlled by Swiss residents may purchase residential property — but anti-avoidance rules (Art. 4a BewG) scrutinize whether the Swiss company is genuinely Swiss-controlled or merely a Lex Koller workaround.
• Inheritance. If you inherit Swiss residential property from a relative, Lex Koller does not prevent you from taking ownership. However, you may face restrictions on selling to another foreign person.
• Regulated investment funds. Swiss real estate funds supervised by FINMA (the Financial Market Supervisory Authority) may acquire residential property regardless of the nationality of their investors.
• Agricultural land. Agricultural property is governed by a separate regime under the BGBB (Bundesgesetz über das bäuerliche Bodenrecht), which has its own restrictions — generally even stricter than Lex Koller for non-farmers.

Cantonal Differences in Enforcement

While Lex Koller is federal law, the authorization process is administered by cantonal authorities (kantonale Bewilligungsbehörden). This creates meaningful differences in practice:

• Zug: Known for a relatively liberal and efficient interpretation. Applications are processed quickly (often 4–6 weeks), and the authorities take a pragmatic view of genuine primary-residence purchases by B-permit holders.
• Geneva: Stricter enforcement. The notaire (notary) plays a gatekeeper role and scrutinizes the buyer's residence status, source of funds, and intended use. Corporate-structure purchases receive particular attention.
• Valais and Graubünden: Process the highest volume of holiday-home permits. Experienced local notaries can navigate the quota system efficiently, but demand far outstrips supply.
• Zürich: Moderate enforcement. The Grundbuchamt (land registry) works closely with the cantonal migration authority to verify permit status before registration.

Choosing the right canton — and the right local notary — can significantly affect the timeline and outcome of your purchase.

No "Golden Visa": Property Does Not Grant Residency

This is perhaps the most important point for international buyers to understand.

In countries like Portugal (Golden Visa, now reformed), Greece, Spain, and several Caribbean nations, purchasing property above a threshold grants the buyer a residence permit.

Switzerland has no such program. Purchasing a CHF 10 million villa in Gstaad does not give you the right to live in Switzerland. You must have independent grounds for a residence permit — employment, family reunification, retirement with sufficient financial means, or lump-sum taxation (Pauschalbesteuerung) — before you can even apply to purchase.

The sequence is always: permit first, property second. Never the reverse.

The New Objektsteuer: Post-Eigenmietwert Reform

Following the 2025 vote to abolish the Eigenmietwert (imputed rental value) for primary residences, a new Objektsteuer (property tax) will apply to second homes and holiday properties from 2028 onward. This is directly relevant for foreign holiday-home owners:

• The cantonal Objektsteuer replaces the Eigenmietwert for second homes.
• Tax rates will be set by each canton, using the former Eigenmietwert as the calculation basis.
• The Schuldzinsenabzug (mortgage interest deduction) for second homes will also be eliminated.

For foreign owners of Swiss holiday apartments, this means the total tax burden on second-home ownership will remain roughly equivalent to the current system — but structured differently. Detailed cantonal rates are expected to be published in 2027.

Practical Steps: The Authorization Process

If you are a foreign buyer with the legal right to purchase (B or C permit holder, or holiday-home applicant), here is the typical process:

1. Engage a Local Notary (Notar / Notaire)

In Switzerland, all real estate transactions must be notarized. The notary is not merely a rubber stamp — they are a legally mandated gatekeeper who verifies Lex Koller compliance before executing the purchase contract.

Choose a notary experienced with foreign buyers. In cantons like Geneva and Vaud, the notaire conducts the entire transaction. In German-speaking cantons, the notary prepares the Kaufvertrag and submits it to the Grundbuchamt.

2. Submit the Authorization Request (Bewilligungsgesuch)

For B-permit buyers purchasing a primary residence, or for holiday-home applicants, a formal authorization request is submitted to the cantonal authority. Required documents typically include:

• Valid residence permit (or confirmation of permit application)
• Purchase contract (draft)
• Proof of financing (bank confirmation)
• Declaration of intended use (primary residence / holiday home)
• For holiday homes: confirmation that the property lies in a designated tourist zone

3. Wait for Approval (2–4 Months)

Processing times vary by canton. Zug and smaller cantons may approve in 4–6 weeks. Geneva and Zürich can take 2–4 months. Holiday-home permits in high-demand cantons may take longer during peak quota periods.

4. Grundbuch Registration

Once approved, the notary registers the transfer at the Grundbuchamt (land registry). The buyer pays the Handänderungssteuer (property transfer tax) — rates vary by canton from 0% (Zug, Schwyz) to 3.3% (Vaud).

The Offlist Angle: Off-Market Access for Qualified Foreign Buyers

For foreign buyers who do hold the right to purchase — C-permit holders, qualified B-permit buyers, or holiday-home applicants with cantonal authorization — the challenge shifts from legality to access.

The most desirable Swiss properties rarely appear on public portals. Lakefront villas in Küsnacht, penthouses in Geneva's Cologny, or historic chalets in Gstaad are traded through private networks, family connections, and curated platforms.

At Offlist, we connect qualified buyers with property owners who prefer discretion over public exposure. If you hold a valid permit and are seeking a property that matches your profile, our off-market network provides access to inventory that never reaches Homegate, ImmoScout24, or the public MLS.

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Frequently Asked Questions

Can a US citizen buy a house in Switzerland?

Only if they hold a valid C (settlement) permit, which grants full property rights equivalent to Swiss citizens. A US citizen with a B permit may purchase one property for personal use as a primary residence. Without any Swiss residence permit, a US citizen cannot buy residential property — Lex Koller explicitly prohibits it. Commercial and industrial properties are an exception and may be purchased regardless of residency status.

What happens to my Swiss property if I leave Switzerland?

If you purchased under the B-permit exemption for a primary residence, leaving Switzerland triggers a review by the cantonal authority. You may be required to sell the property within a defined period, or the authority may grant a limited holding period (typically 2 years) to allow an orderly sale. If you hold a C permit or purchased a holiday home with proper cantonal authorization, your ownership is generally not affected by departure — you retain the property as a non-resident owner, subject to the applicable tax obligations (including the new Objektsteuer for second homes from 2028).

Are there cantons with no Lex Koller restrictions?

No. Lex Koller is federal law (BewG) and applies uniformly across all 26 cantons. There is no canton where a non-resident foreigner can freely purchase residential property without authorization. However, interpretation and enforcement vary significantly. Some cantons — particularly Zug and Schwyz — process applications faster and interpret exceptions more liberally, while others — notably Geneva — scrutinize foreign purchases more closely and apply stricter documentation requirements. The choice of canton can affect your timeline and experience, but not the fundamental legal framework.

About the Author

Benjamin Amos Wagner

Founder of Expat-Savvy.ch & Offlist | Connecting Expats with Homes