Foreign Buyer Eligible: What Does It Mean?

The legal basis

The designation derives from the Federal Act on the Acquisition of Immovable Property by Persons Abroad (Lex Koller). Under this law, foreign nationals who are not resident in Switzerland and do not hold a C permit require cantonal authorisation to purchase residential property. Properties that have been granted such authorisation — or that are eligible to receive it — are described as Foreign Buyer Eligible.

The term is used in both French (autorisé acheteur étranger) and German (für Ausländer bewilligt) in Swiss property listings, though the English term is widely used in international marketing.

What it means for buyers

For a non-resident foreign buyer, Foreign Buyer Eligible status is a prerequisite for purchase. Without it, the transaction cannot proceed regardless of the buyer's financial capacity or intent. Buyers should therefore filter their search to eligible properties from the outset rather than identifying a property and then discovering it is ineligible.

Eligible status does not guarantee that authorisation will be granted — the buyer must still apply within the annual cantonal quota. However, it confirms that the property type and location are compatible with foreign ownership under Lex Koller.

What it means for sellers

For sellers, a Foreign Buyer Eligible property has a broader potential buyer pool — it can be sold to both Swiss/resident buyers and to non-resident foreign buyers. This can be an advantage in a market where international demand is strong, as in Montreux.

Sellers should ensure that the eligible status of their property is clearly communicated in marketing materials and confirmed in the land register extract provided to prospective buyers.

Conditions attached to eligible properties

Foreign Buyer Eligible properties typically carry conditions of use: the property must be used as a private holiday home, cannot be rented out commercially, and must not exceed the size limits set under Lex Koller. These conditions are registered against the property and bind all future owners who purchase under Lex Koller authorisation.

Buyers who are Swiss nationals or C permit holders purchasing the same property are not bound by these conditions — the restrictions apply only to the foreign buyer authorisation, not to the property in perpetuity for all buyers.

Key points

• Foreign Buyer Eligible is a legal designation, not a marketing term
• It confirms the property can be sold to non-resident foreign buyers under Lex Koller
• Eligible status is a prerequisite — without it, the purchase cannot proceed
• Conditions of use (holiday home only, no commercial rental) are attached to the authorisation
• Swiss nationals and C permit holders buying the same property are not bound by these conditions