Lex Koller Switzerland: Rules & Exemptions (2026)

Lex Koller — officially the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG) — is Switzerland’s primary restriction on foreign ownership of Swiss real estate. It has been in force since 1983 and represents Switzerland’s policy decision to limit foreign land ownership as a matter of national interest.

What Lex Koller Restricts

Lex Koller restricts foreigners (Personen im Ausland) from acquiring Swiss residential real estate without cantonal authorisation. “Persons abroad” (auslaendische Personen) means:

• Foreign nationals not residing in Switzerland
• Foreign nationals residing in Switzerland but holding an L permit (short-term) — generally restricted
• Foreign-controlled Swiss legal entities whose beneficial owner is a non-resident foreign national
• Swiss companies more than 50% owned by non-resident foreigners — generally subject to Lex Koller for residential property

Who Is Exempt from Lex Koller

Swiss citizens: No restriction at all.

EU/EFTA nationals with B permit or C permit: Can purchase a primary residence in their canton of residence without authorisation. A B permit holder can buy one primary residence in the canton where they are registered. A C permit holder has equivalent rights to Swiss citizens for property purposes.

Non-EU/EFTA nationals with C permit: Can purchase their primary residence without Lex Koller authorisation.

Non-EU/EFTA nationals with B permit: Can purchase primary residence in their canton of residence only — same as EU/EFTA B permit holders.

Anyone — commercial/industrial property for business use: Lex Koller does not apply to commercial or industrial property acquired for genuine business purposes. A foreign-owned Swiss company buying office space or a factory faces no Lex Koller restriction.

What Requires Cantonal Authorisation

Foreign persons not otherwise exempt must obtain cantonal authorisation to purchase:

• Residential real estate (apartments, houses)
• Agricultural land
• Certain mixed-use properties with residential components

Authorisation is granted (or refused) by the cantonal government. In practice, very few authorisations are granted — the quota system for holiday apartments is extremely limited.

Holiday Apartments: The Quota Exception

There is a limited exception for foreigners to purchase holiday apartments (Ferienwohnungen) in designated Swiss tourist zones (certain mountain resorts):

• A strict annual quota of 1’500 authorisations per year applies nationally
• Must be in a designated tourist commune that has not used up its cantonal allocation
• The property must be used as a holiday home — not rented out commercially (with some exceptions)
• Minimum property size restrictions apply

In practice, the holiday apartment quota is largely exhausted in popular destinations (Verbier, Gstaad, St. Moritz). The quota has been frozen for decades, making new authorisations extremely difficult to obtain.

Lex Koller and Swiss Companies

A Swiss company whose majority beneficial owner is a non-resident foreigner is generally treated as a “foreign person” for Lex Koller purposes when acquiring residential real estate. The company structure does not bypass the restriction.

The exception: if the Swiss company is genuinely commercial and the real estate is for its business operations, Lex Koller does not apply. For more on structuring a Swiss entity, see our company formation guide.

Enforcement and Penalties

Unauthorised acquisition: An acquisition of Swiss real estate in breach of Lex Koller is void (null and void). The property must be divested.

Penalties: Criminal penalties for wilful breach; administrative orders to divest.

Monitoring: Cantonal land registry offices check ownership at the time of transfer. Notaries must verify Lex Koller compliance before authenticating real estate transfer deeds.

Lex Koller and Immigration Status

Your immigration status determines your property rights under Lex Koller. The relationship between permit type and property purchase rights is direct:

For a full overview of Swiss immigration categories, see immigrate to Switzerland.

Frequently Asked Questions

I have a Swiss company — can it buy residential real estate in Switzerland for me?

If you are a non-resident foreign national with majority control of the Swiss company, the company is subject to Lex Koller for residential property. Ownership through a Swiss company does not bypass the restriction. The company would need cantonal authorisation — which is rarely granted for residential purposes.

If I get a Swiss B permit, what can I buy?

With a B permit (any nationality), you can purchase one primary residence in the canton where your permit is issued. You cannot purchase investment properties, second homes, or properties outside your canton of residence under the B permit exemption.

Does Lex Koller apply to real estate funds?

Swiss collective investment schemes (real estate funds) have specific rules — listed Swiss real estate funds are generally exempt; non-listed funds with more than one third foreign investors may be subject to Lex Koller for certain acquisitions. This requires specific legal analysis.

Can I inherit Swiss residential property as a foreign national?

Yes. Inheritance is exempt from Lex Koller restrictions. A foreign national who inherits Swiss residential property can keep and use it. However, if the heir is a non-resident foreigner and later wishes to sell and repurchase different Swiss residential property, the new purchase would be subject to Lex Koller.

Does Lex Koller apply to long-term leases?

A long-term lease (Baurecht or similar) that gives the lessee rights equivalent to ownership may be treated as an acquisition for Lex Koller purposes. The Federal Office of Justice (BJ) has published guidance on when leases trigger Lex Koller. Short-term residential leases (ordinary rental agreements) are not affected.

What happens if I marry a Swiss citizen — does Lex Koller still apply?

If you acquire Swiss citizenship through marriage (after meeting the naturalisation requirements), Lex Koller no longer applies to you. However, simply being married to a Swiss citizen without holding Swiss citizenship yourself does not exempt you. Your own nationality and residence permit status determine your Lex Koller position.

Can I buy a plot of land to build on as a foreigner?

If the intended use is residential, Lex Koller applies in the same way as purchasing an existing residential property. If the land is for commercial or industrial purposes, Lex Koller does not apply. The intended use must be genuine and documented — purchasing “commercial” land and later converting it to residential use is subject to enforcement action.

Are there any cantons that are more lenient with Lex Koller authorisations?

The BewG is federal law applied uniformly across all cantons. However, the holiday apartment quota is allocated to cantons with designated tourist communes, and availability varies. Cantons with fewer tourist destinations may have unused holiday quota, making authorisation marginally more obtainable in less popular locations. The practical difference is small — the overall national quota is tightly constrained.

Does Lex Koller affect commercial real estate investment?

No. Lex Koller does not restrict the acquisition of commercial or industrial real estate by foreign persons, regardless of nationality or residence status. Foreign investors can freely purchase office buildings, retail premises, industrial facilities, and development sites intended for commercial use. This exemption makes Switzerland accessible for foreign commercial real estate investment.

What is the penalty for an unauthorised property purchase under Lex Koller?

The transaction is void under civil law — the land register entry is deleted, and the property must be divested. Criminal penalties apply for wilful violations, including fines and potentially imprisonment. The notary who authenticated the transaction may also face professional consequences. In practice, the land registry and notarial verification at the point of transfer make it difficult to complete an unauthorised acquisition without detection.