Investing in Swiss Real Estate: A Guide for Non-Residents

Switzerland remains a highly sought-after destination for property investment. While the Swiss government regulates the acquisition of real estate by foreigners to maintain market stability, ownership is certainly possible for non-residents.

If you are considering purchasing a vacation home in Switzerland, here are the essential guidelines and the legal framework you must understand.

The Fundamental Constraints

Under current regulations, foreign nationals (non-EU/EFTA residents without a Swiss residence permit) may purchase one vacation home in authorized tourist regions.

• Size Limits: The property must not exceed 200 m2 of living space on a plot of up to 1,000 m2.

• Exceptions: Under specific circumstances, these limits can be extended to 250 m2of living space and up to 1,500m2 of land.

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5 Essential Deed of Sale Obligations

When you purchase a property as a foreigner, your deed of sale will include specific restrictive covenants designed to ensure the property functions as a true vacation home rather than a speculative investment.

1. Mandatory Usage: The property must be used as a holiday home at least once per year.

2. Strict Modification Controls: Any plans to enlarge or expand the property require official government approval.

3. Resale Restrictions: You must obtain special authorization if you intend to sell the property within the first five years of ownership.

4. Enforced Divestment: If you cease using the property as a holiday home, you are legally obligated to resell it within two years.

5. Rental Limitations: It is strictly forbidden to rent out the property on a year-round basis.

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The Legal Framework: From Lex Koller to Lex Weber

These rules are governed by the Federal Law on the Acquisition of Immovable Property by Persons Abroad, commonly known as "Lex Koller." Introduced in its current form in 1987, the law was designed to prevent the overheating of the real estate market and to protect Swiss citizens from being priced out of their own country, particularly in popular alpine resorts.

While Lex Koller regulates who can buy, it is important to also understand the secondary legislation that impacts what can be built and utilized in these regions: Lex Weber.

Born from a 2012 popular initiative, Lex Weber introduced a nationwide cap: no more than 20% of the total housing stock in any single municipality can consist of second homes. This law has significantly reshaped the availability of holiday homes across Switzerland.

Want to dive deeper?For a comprehensive breakdown of the interactions between Lex Koller and Lex Weber, along with updated insights on current municipal quotas, I invite you to read the full analysis on my blog and review the detailed FAQs available

Note: This information is for educational purposes and does not constitute formal legal advice. Regulations can vary by canton and individual circumstances; I recommend consulting with a qualified local specialist before finalizing any property decisions.