Can Non-Residents Buy Property in Switzerland?

The general rule for non-residents

Non-residents cannot freely purchase residential property in Switzerland. Lex Koller requires them to obtain cantonal authorisation before completing a purchase. This applies to all non-residents regardless of nationality — including EU and EFTA citizens who do not reside in Switzerland.

The restriction is on residential property specifically. Commercial property (offices, retail, industrial) is generally not subject to Lex Koller, though mixed-use properties with a residential component may be.

What non-residents can purchase

Non-residents can purchase a holiday home in a designated tourist municipality — such as Montreux — subject to cantonal authorisation and within the annual quota. The property must be used exclusively as a private holiday home and must meet the size restrictions under Lex Koller.

Non-residents cannot purchase a primary residence (by definition, they do not reside in Switzerland), a secondary residence for investment purposes, or residential property outside designated tourist areas.

The authorisation process for non-residents

The application for authorisation is submitted to the cantonal authority — in Montreux's case, the Canton of Vaud. The application is typically handled by the notary as part of the purchase transaction. The buyer must demonstrate that the property will be used as a holiday home and that the size conditions are met.

Processing time is typically four to eight weeks, though it can be longer if the annual quota is nearly exhausted. Buyers should factor this into their transaction timeline.

Practical considerations

Non-resident buyers should engage a local notary and a specialist real estate agent early in the process. The notary will verify eligibility, prepare the authorisation application and ensure the transaction complies with Lex Koller. An experienced agent will identify eligible properties and manage the process efficiently.

Financing a purchase as a non-resident is also more complex — Swiss banks apply stricter lending criteria to non-residents, and some banks do not lend to non-residents at all. Buyers should confirm financing options before making an offer.

Key points

• Non-residents — including non-resident EU/EFTA citizens — require Lex Koller authorisation
• Only holiday homes in designated tourist municipalities can be purchased
• Montreux is a designated tourist municipality with an annual quota
• Authorisation takes four to eight weeks
• Swiss mortgage financing for non-residents is more restricted