Residency and Property Purchase in Switzerland

Residency and Lex Koller

The Lex Koller law restricts the purchase of residential property in Switzerland by foreign nationals who are not resident in Switzerland. The key distinction is between residents and non-residents: residents of Switzerland — regardless of nationality — generally have the same property purchase rights as Swiss citizens. Non-residents face significant restrictions under Lex Koller.

The type of residence permit held by a foreign national also affects their property purchase rights. C permit holders (permanent residence) have the same rights as Swiss citizens. B permit holders can purchase a primary residence without restriction. Non-residents and holders of other permit types face the full Lex Koller restrictions.

The B permit and property purchase

A B permit (annual residence permit) entitles the holder to purchase a primary residence in Switzerland without Lex Koller restrictions. This means that B permit holders can purchase any residential property — not just Foreign Buyer Eligible properties — provided it is used as their primary residence.

B permit holders cannot purchase a secondary residence or a holiday home without Lex Koller authorisation. If a B permit holder wishes to purchase a property that will not be their primary residence, they must apply for Lex Koller authorisation — which is subject to the cantonal quota system and is not guaranteed.

The C permit and property purchase

A C permit (settlement permit — permanent residence) gives the holder the same property purchase rights as a Swiss citizen. C permit holders can purchase any residential property — primary residence, secondary residence, investment property — without Lex Koller restrictions.

The C permit is available after 5 years of continuous residence in Switzerland for EU/EFTA nationals and after 10 years for non-EU/EFTA nationals. For foreign nationals who are planning a long-term stay in Switzerland, obtaining the C permit is a significant milestone — it removes all Lex Koller restrictions on property purchase.

Planning the acquisition strategy

Foreign nationals who are considering purchasing property in Switzerland should plan their acquisition strategy in the context of their residency situation. Those who are not yet resident in Switzerland but are planning to relocate should consider whether to purchase before or after taking up residence — purchasing before taking up residence means purchasing as a non-resident (subject to Lex Koller restrictions); purchasing after taking up residence (with a B permit) removes the primary residence restriction.

The optimal strategy depends on the individual's circumstances — their nationality, their timeline for relocation and the type of property they wish to purchase. A Swiss property lawyer can advise on the optimal approach for each individual situation.

Key points

• Residents: generally same purchase rights as Swiss citizens (regardless of nationality)
• B permit: can purchase primary residence without restriction; secondary residence requires Lex Koller
• C permit: same rights as Swiss citizen; available after 5 years (EU/EFTA) or 10 years (others)
• Non-residents: full Lex Koller restrictions apply — only Foreign Buyer Eligible properties
• Plan acquisition strategy around residency timeline — consult Swiss property lawyer