Swiss Residential Property Acquisition: Regulatory Framework

Switzerland maintains a structured regulatory framework governing the acquisition of residential property by foreign nationals. The principal instrument is the Federal Act on the Acquisition of Real Estate by Persons Abroad — commonly referred to as Lex Koller — which restricts the purchase of residential property in Switzerland by non-resident foreign nationals in certain cantons and property categories.

Under the current framework, non-resident foreign nationals are generally prohibited from acquiring residential property in Switzerland without a permit. Exceptions apply in specific circumstances, including the acquisition of a primary residence by foreign nationals holding a valid Swiss residence permit (B or C permit), and certain commercial property categories that fall outside the scope of the Act.

The Act applies primarily to residential property in tourist and holiday regions, as well as secondary residences in designated cantons. Primary residences acquired by permit holders for personal occupation are generally exempt from the permit requirement, subject to applicable cantonal regulations.

A separate instrument — the Federal Act on Second Homes (Lex Weber) — restricts the construction of new secondary residences in municipalities where the proportion of secondary homes exceeds twenty percent of total housing stock. This has material implications for the availability of new-build secondary residences in Alpine and tourist regions.

Prospective acquirers are advised to obtain independent legal advice prior to entering into any property transaction in Switzerland. The applicable regulatory framework varies by canton, property type, acquirer residency status and intended use. Montreux Real Estate coordinates with qualified legal professionals in connection with property introductions and transaction processes.

The regulatory environment governing Swiss residential property acquisition has remained broadly stable in recent years. However, ongoing political and legislative developments may affect applicable thresholds, permit requirements and cantonal implementation. Clients are advised to verify current requirements with qualified Swiss legal counsel at the time of any proposed transaction.

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