Lex Koller Property Size and Use Restrictions

Size restrictions

The standard size limits under Lex Koller are a net living area of 200 square metres and a plot area of 1,000 square metres. These limits apply to the property as authorised — a buyer cannot purchase a property within these limits and then extend it beyond them without seeking a new authorisation.

Some properties in Montreux were authorised under earlier versions of Lex Koller that had different size limits. These properties may have larger living areas or plots than the current standard limits. Buyers should review the specific authorisation conditions for any property they are considering.

Use restrictions

A property purchased under Lex Koller authorisation must be used exclusively as a private holiday home by the buyer and their immediate family. It cannot be used as a primary residence (the buyer must reside elsewhere), rented out commercially, used for business purposes or transferred to a company.

Short-term rental platforms such as Airbnb are not permitted. The property must remain a private holiday home for the duration of the foreign buyer's ownership under the authorisation.

Resale restrictions

A foreign buyer who wishes to sell a Lex Koller-authorised property can sell it to another foreign buyer (subject to a new authorisation) or to a Swiss national/C permit holder (without restriction). The property retains its Foreign Buyer Eligible status through subsequent sales.

There is no minimum holding period under current Lex Koller rules, but property gains tax in Vaud applies to sales within a certain period of purchase. Buyers should factor this into their exit planning.

Inheritance and transfer

A Lex Koller-authorised property can be inherited by the buyer's heirs. If the heirs are foreign nationals subject to Lex Koller, they must apply for their own authorisation to retain the property. If they do not qualify or choose not to apply, they must sell the property within a reasonable period.

Transfers to family members during the buyer's lifetime are subject to the same rules — the recipient must qualify under Lex Koller or be a Swiss national/C permit holder.

Key points

• Net living area capped at 200 sqm; plot area at 1,000 sqm
• Property must be used exclusively as a private holiday home
• No commercial rental, no business use, no company ownership
• Resale to another foreign buyer requires a new authorisation
• Heirs who are foreign nationals must apply for their own authorisation