Foreign buyers who have purchased property in Montreux under Lex Koller authorisation can resell the property, but the process involves specific considerations. Understanding the resale rules before purchase helps buyers plan their exit strategy.
Who can buy a resold Lex Koller property
A property purchased under Lex Koller authorisation can be resold to any buyer — Swiss national, C permit holder, or another foreign buyer. If the new buyer is a foreign national subject to Lex Koller, they must apply for their own authorisation within the annual cantonal quota.
If the new buyer is a Swiss national or C permit holder, no Lex Koller authorisation is required for the resale. The property retains its Foreign Buyer Eligible status but the new owner is not bound by the holiday home use restrictions.
Property gains tax
The Canton of Vaud levies a property gains tax (impôt sur les gains immobiliers) on the profit realised from a property sale. The tax rate decreases with the length of ownership — properties held for longer periods attract a lower rate. Short-term sales (within a few years of purchase) attract the highest rates.
Buyers should factor property gains tax into their financial planning. The tax is calculated on the difference between the purchase price (including acquisition costs) and the sale price (net of selling costs). A notary or tax adviser can provide a calculation based on the specific property and holding period.
Practical process
The resale process for a Lex Koller-authorised property follows the standard Swiss property sale process. The seller engages a notary, the purchase contract is drafted, and if the buyer is a foreign national, the Lex Koller authorisation application is submitted. Completion occurs once authorisation is granted (if required) and the purchase price is paid.
There is no minimum holding period under Lex Koller — a buyer can resell at any time. However, the property gains tax implications of a short-term sale should be carefully considered.
Key points
- Lex Koller-authorised properties can be resold to any buyer
- Foreign buyers purchasing the resold property must apply for their own authorisation
- No minimum holding period under Lex Koller
- Property gains tax applies — rate decreases with length of ownership
- Short-term sales attract the highest property gains tax rates
Contact Montreux Real Estate for guidance on reselling a property in Montreux, including current market conditions and tax planning.
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