Authored by the expert who managed and guided the team behind the Switzerland Property Pack
Everything you need to know before buying real estate is included in our Czech Republic Property Pack
The Lex Koller law is Switzerland's federal regulation that strictly controls foreign ownership of residential and holiday properties.
Enacted in 1983, this legislation aims to prevent excessive foreign investment in Swiss real estate, protect local housing availability, and maintain community ownership structures. The law applies to all non-Swiss citizens and foreign entities, with specific restrictions on property types, maximum allowable living space, and regional quotas.
If you want to go deeper, you can check our pack of documents related to the real estate market in Switzerland, based on reliable facts and data, not opinions or rumors.
Lex Koller restricts foreign buyers to holiday homes under 200-250 m² in designated tourist areas, with annual quotas limiting purchases to around 1,500 units nationally.
Commercial properties remain unrestricted for foreign investment, while residential properties for primary residence are generally prohibited for non-residents.
| Restriction Category | Foreign Buyer Status | Permitted Property Types |
|---|---|---|
| Full Restrictions | Non-EU/EFTA without C-permit | Holiday homes only (with permit) |
| Limited Restrictions | EU/EFTA residents (B/C permit) | All residential properties |
| No Restrictions | All foreign buyers | Commercial/office properties |
| Area Limits | Foreign holiday home buyers | Maximum 1,000 m² land, 200-250 m² living space |
| Regional Quotas | Tourist areas (Alpine regions) | Approximately 1,500 units annually nationwide |
| Penalties | Illegal purchases | Sale nullification, forced resale |
| Exceptions | Business-related properties | Manager apartments tied to operations |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Skiing Property
What exactly is the Lex Koller law in Switzerland and why was it created?
The Lex Koller law is Switzerland's federal legislation that restricts foreign ownership of certain types of real estate to prevent excessive foreign control of the Swiss property market.
Enacted in 1983, this law specifically targets residential properties, holiday homes, and secondary residences to stop foreign buyers from dominating desirable Swiss real estate markets. The legislation emerged as a response to growing concerns about affordable housing access for Swiss residents and maintaining local community ownership structures.
The primary goal of Lex Koller is to protect affordable housing for locals and preserve the character and ownership structure of Swiss communities. As of September 2025, the law continues to serve as a significant barrier to foreign investment in Switzerland's residential property sector, while leaving commercial real estate largely unrestricted.
The law operates through a complex system of permits, quotas, and area restrictions that vary by canton and property type. Understanding these restrictions is crucial for any foreign investor considering Swiss real estate.
It's something we develop in our Switzerland property pack.
Who does the Lex Koller law apply to—foreigners, residents with permits, or Swiss citizens?
Lex Koller applies specifically to "persons abroad," which includes foreign nationals without Swiss passports, EU/EFTA citizens not residing in Switzerland, and non-EU/EFTA nationals without a C-permit.
Swiss citizens and dual nationals are completely exempt from Lex Koller restrictions, regardless of whether they live in Switzerland or abroad. EU/EFTA citizens living in Switzerland with a B or C permit are also not subject to these restrictions, giving them the same property purchasing rights as Swiss citizens.
Non-EU/EFTA nationals must hold a C-permit (permanent residence permit) to be exempt from Lex Koller restrictions. Those with only B-permits (temporary residence) remain subject to the law's limitations on property ownership.
Corporate purchasers face additional scrutiny under Lex Koller if they are controlled by "persons abroad." Swiss companies with foreign ownership above certain thresholds may also be subject to these restrictions, making corporate property acquisition strategies more complex for international investors.
The law's application is strictly enforced, with Swiss authorities conducting thorough background checks on all property buyers to determine their legal status under Lex Koller regulations.
Which types of properties are covered under Lex Koller restrictions?
Lex Koller covers most residential properties, including single-family homes, apartments, condominiums, and any property intended for non-commercial residential use.
Holiday homes and secondary residences fall under the strictest Lex Koller restrictions, with annual quotas limiting foreign purchases to approximately 1,500 units nationwide. These properties can only be purchased in officially designated tourist areas and require special authorization from cantonal authorities.
Commercial and industrial real estate, including office buildings, retail spaces, hotels, and mixed-use properties where the commercial component predominates, are not covered by Lex Koller restrictions. This exemption makes commercial property investment significantly more accessible to foreign buyers than residential investment.
Mixed-use properties present a gray area where the classification depends on the predominant use. Properties with substantial residential components may still fall under Lex Koller restrictions even if they include commercial elements.
Agricultural land and forest properties are subject to separate, even stricter regulations under Swiss law, making them virtually inaccessible to foreign buyers without specific agricultural business justifications.
Are there specific cantons or regions where the law is applied more strictly?
Alpine resort cantons and popular tourist destinations apply Lex Koller more strictly than other regions, with enhanced quotas and additional local restrictions on foreign property ownership.
Cantons like Valais, Graubünden, and parts of Vaud impose stricter annual limits on the number of holiday homes foreigners can purchase, often maintaining waiting lists when quotas are exceeded. These regions typically see the highest demand from foreign buyers seeking ski chalets and mountain properties.
Some cantons implement additional requirements beyond federal Lex Koller regulations, such as minimum residency periods in the property or restrictions on rental activities. Tourist-heavy areas may also require proof that the property will be used personally rather than as a pure investment.
Urban cantons like Zurich and Geneva generally apply Lex Koller more leniently for residential properties outside designated tourist zones, though the basic restrictions still apply to foreign buyers without proper permits.
National quotas still apply across all cantons, ensuring that even more permissive regions cannot exceed the overall annual limit of approximately 1,500 foreign holiday home purchases nationwide.
Don't lose money on your property in Switzerland
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
How much living space or land area can a foreigner legally buy under Lex Koller rules?
Foreign buyers are typically restricted to purchasing land plots under 1,000 square meters and living spaces not exceeding 200-250 square meters for holiday homes.
These size limitations apply specifically to holiday home purchases in designated tourist areas, with some cantonal variations that may impose even stricter limits. The exact maximum living space can vary between 200-250 square meters depending on the specific canton and local regulations.
Land area restrictions of 1,000 square meters help prevent foreign buyers from acquiring large estates or developable plots that could significantly impact local housing markets. Exceptions to these size limits are rare and require special justification through cantonal authorities.
Commercial properties are not subject to these size restrictions, allowing foreign investors to purchase large office buildings, retail centers, or industrial facilities without area limitations.
It's something we develop in our Switzerland property pack.
What are the exact conditions under which a foreigner can purchase a holiday home in Switzerland?
Foreigners can purchase holiday homes only in officially designated tourist areas after obtaining authorization from cantonal authorities and securing a spot within annual quotas.
The property cannot be used as a primary residence or rented out year-round as a commercial venture. Foreign buyers must demonstrate that the property will be used personally for vacation purposes, with most cantons requiring minimum annual personal use periods.
Only one property per family unit is permitted, including spouses and underage children, preventing foreign buyers from accumulating multiple holiday properties in Switzerland. This restriction applies even if family members purchase properties separately.
Buyers must provide proof of financial capability and demonstrate legitimate vacation home use, with some cantons requiring detailed usage plans and regular compliance reporting. The authorization process can take several months and involves thorough background checks.
Once purchased, holiday homes under Lex Koller cannot be easily converted to primary residences or sold to other foreign buyers without going through the quota system again.
Can foreigners invest in commercial or office property without restrictions, and if so, what limits exist?
Foreigners can freely purchase commercial and office properties without Lex Koller restrictions, making commercial real estate investment significantly more accessible than residential property investment.
No area limitations, quotas, or special permits apply to pure commercial properties such as office buildings, retail spaces, warehouses, or industrial facilities. This exemption extends to hotels, restaurants, and other hospitality properties classified as commercial rather than residential.
Mixed-use properties may still face restrictions if the residential component predominates over the commercial use. Properties with substantial residential sections, such as apartment buildings with ground-floor retail, typically remain subject to Lex Koller limitations.
Corporate ownership structures can provide additional flexibility for foreign commercial property investment, though companies with significant foreign control may still face scrutiny under certain circumstances.
Commercial property financing and taxation rules remain standard for foreign buyers, without the additional complications that residential property purchases face under Lex Koller regulations.
What exceptions or special permits are available, and how difficult is it to obtain them in practice?
Limited exceptions exist for properties needed for business operations, such as manager apartments tied directly to commercial enterprises, but these are rare and closely scrutinized by authorities.
Special permits for business-related residential properties require demonstrating a clear operational necessity, such as on-site management requirements for hotels, farms, or manufacturing facilities. The residential component must be directly linked to and necessary for the business operation.
Permit applications undergo strict review processes that often take 6-12 months and frequently result in denials unless all criteria are clearly met. Authorities require extensive documentation proving the business necessity and ongoing operational requirements.
Non-EU/EFTA citizens without residency face the most difficult approval processes, with success rates significantly lower than for EU/EFTA citizens or those with established Swiss business presence.
Even when permits are granted, they often come with conditions such as minimum business operation periods, reporting requirements, and restrictions on future property transfers that can complicate long-term investment strategies.
What are the penalties or risks if someone bypasses or ignores Lex Koller requirements?
Acquiring Swiss real estate in violation of Lex Koller results in null and void transactions, with authorities having the power to reverse sales and force property resale.
Buyers who circumvent Lex Koller requirements face payment return obligations and may be subject to legal penalties including fines and potential criminal charges for deliberate law evasion. The financial losses can be substantial, especially in a rising property market.
Swiss authorities can remove illegally acquired properties from the land register, effectively invalidating ownership rights and making the property unmarketable until legal compliance is achieved.
Attempted workarounds such as using shell companies or nominee structures are actively investigated by Swiss authorities, with sophisticated enforcement mechanisms designed to detect and prosecute violations.
Banks and notaries involved in illegal transactions may also face penalties, creating additional pressure on the real estate transaction ecosystem to ensure Lex Koller compliance before proceeding with sales.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Switzerland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does the law affect inheritance or gifting of property to foreign family members?
Inheriting Swiss property as a foreigner is generally permitted under Lex Koller, but subsequent sales or transfers may trigger new permit requirements and restrictions.
Foreign heirs who inherit Swiss residential property can typically retain ownership even if they wouldn't qualify to purchase the property originally. However, if they choose to sell the inherited property, the sale must comply with current Lex Koller restrictions.
Gifting property to foreign family members may trigger permit requirements and is not automatically exempt from Lex Koller restrictions. The recipient must meet the same qualifications as any other foreign buyer, potentially requiring authorization and quota compliance.
Estate planning involving Swiss property requires careful consideration of Lex Koller implications, particularly when beneficiaries include foreign nationals who may face disposal requirements or usage restrictions.
Professional legal advice is essential for inheritance and gifting scenarios, as the specific circumstances and timing can significantly impact the available options and compliance requirements under Swiss law.
What practical steps must a foreigner take before signing a purchase contract under Lex Koller?
Foreign buyers must verify their eligibility status, determine the property's classification (residential, commercial, or tourist), and secure any required acquisition permits before finalizing purchase contracts.
The first step involves confirming whether the buyer qualifies for exemptions based on residency status, citizenship, or permit type. EU/EFTA citizens must document their Swiss residence, while non-EU/EFTA citizens need to verify their C-permit status.
Property classification verification requires confirming whether the target property falls under Lex Koller restrictions and, if so, whether it's in a designated tourist area eligible for foreign holiday home purchases. This classification affects the entire purchase process and required permits.
Permit applications must be submitted to cantonal authorities well before intended purchase dates, as the approval process can take several months and may require additional documentation or clarifications.
It's something we develop in our Switzerland property pack.
How likely is it that Lex Koller will change in the coming years, and what trends should buyers watch for?
Lex Koller remains subject to regular political debate in Switzerland, with recent trends indicating potential tightening rather than loosening of restrictions on foreign property ownership.
As of September 2025, Swiss political discussions have occasionally moved toward expanding restrictions to include commercial real estate or reducing annual quotas for holiday home purchases. No major liberalization of the law appears likely in the near term.
Cantonal quota changes and regional policy adjustments represent the most likely short-term modifications to the Lex Koller framework, particularly in high-demand tourist areas experiencing continued foreign investment pressure.
Property buyers should monitor ongoing political developments at both federal and cantonal levels, as changes to Lex Koller can significantly impact investment strategies and market access for foreign buyers.
The law's fundamental structure protecting residential property for local ownership appears to have strong political support, suggesting that any future changes will likely maintain or strengthen rather than weaken current restrictions.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lex Koller represents one of the world's most comprehensive foreign property ownership restriction systems, effectively limiting foreign residential investment while keeping commercial markets open.
Understanding these regulations is crucial for any foreign investor considering Swiss real estate, as violations can result in significant financial losses and legal complications.
Sources
- Global Referral Group - Swiss Property Laws
- Wikipedia - Lex Koller
- MREI - Lex Koller Restrictions
- Nievergelt & Stöhr - Real Estate Guide
- Immocrans - Lex Koller Guide
- Engel & Völkers - Lex Koller Resources
- PropertyOwner - Lex Koller Guide
- Neho - Property Buying Guide
- MLL Legal - Lex Koller Amendment Analysis
- Lindemann Law - Real Estate Acquisition