Buying property in Switzerland as a foreigner: the Lex Koller explained

A French nurse who lives in Annemasse and works in Geneva, an Indian engineer settled in Lausanne with a B permit, a German couple dreaming of a chalet in Valais: all three may want to buy in Switzerland, and the law does not answer them in the same way. The Federal Act on the Acquisition of Real Estate by Persons Abroad, known as the Lex Koller, does not stop at your passport: it combines your nationality, your domicile and the intended use of the property. This guide helps you work out which category you fall into, what you can buy freely, what requires a cantonal authorisation and what the reform under discussion would change.

1. Are you a "person abroad" within the meaning of the Lex Koller?

You are if you are an EU or EFTA national without a legal and actual domicile in Switzerland, or a national of another state without a C settlement permit. The Federal Act of 16 December 1983 on the Acquisition of Real Estate by Persons Abroad (LFAIE, SR 211.412.41, text in French) lays down the principle in Article 2(1): without authorisation from the cantonal authority, a person abroad may not acquire real estate in Switzerland, except where the law provides otherwise. Article 5(1), letters a and a^bis, defines who is concerned.

The criterion is therefore not nationality alone. A French national living in Geneva is not a person abroad; the same French national, living in Haute-Savoie, is. A Canadian national settled in Zurich is one until they obtain a C permit, even if they have lived there for several years.

What "legal and actual domicile" covers

The Ordinance on the Acquisition of Real Estate by Persons Abroad (OAIE, SR 211.412.411) specifies in Article 2 that domicile is assessed under Articles 23, 24(1), 25 and 26 of the Civil Code. For an EU or EFTA national, legal domicile requires a valid EU/EFTA permit that allows a domicile to be established: the B residence permit, the C settlement permit or the L EU/EFTA short-term residence permit (Art. 2(2) OAIE). A permit and a certificate from the municipality are not enough on their own: the buyer must prove that the centre of their life is in Switzerland, in particular through living with their family, their work and their relationships.

Special cases

• British nationals: they are treated as EU nationals only if they established their domicile in Switzerland before 1 January 2021, under the Agreement on the Free Movement of Persons (Art. 5(1)(a)(2) LFAIE). If they arrived after 31 December 2020, they are treated as third-country nationals.
• Swiss spouse: marrying a Swiss citizen does not change your status as a person abroad, according to the Federal Office of Justice (FOJ).
• Refugees and S status: people with S status and third-country refugees holding a B or F permit remain persons abroad; a recognised refugee holding a B permit may, however, buy their principal residence.
• Nominees: anyone who buys on behalf of a person abroad, including a Swiss national, is themselves subject to the law (Art. 5(1)(d) LFAIE).
• Companies: a company with its registered office abroad, or with its registered office in Switzerland but in which persons abroad hold a dominant position, is itself a person abroad. The law presumes such a dominant position above one third of the capital or the votes (Art. 5(1)(b) and (c), Art. 6(2)). Our guide to Swiss real estate companies for non-residents covers the taxation of this structure.

Note: owning property in Switzerland gives no right to a residence permit. The FOJ points this out in its questions and answers: buying a property is no substitute for a residence permit.

2. What can you buy without authorisation?

Even if you are a person abroad, the law lets you buy without authorisation business premises, your principal residence if you live in Switzerland, certain property received within the family, units in real estate funds traded on a regular market and shares in real estate companies listed in Switzerland. These exceptions are set out in Articles 2, 4 and 7 of the LFAIE; everything else, in particular a home bought by a person living outside Switzerland, is subject to authorisation.

Business premises: the permanent establishment

Article 2(2)(a) exempts real estate that serves as a permanent establishment for carrying on trade, operating a factory, pursuing a craft or practising a liberal profession. Homes required under housing quotas may be acquired at the same time (Art. 2(3)). According to the FOJ, under current law you do not have to operate these premises yourself: you may buy them to let to a third party who carries on a commercial activity there. On the other hand, building, letting or dealing in homes is not a permanent-establishment activity (Art. 3 OAIE): a residential rental building does not fall within this exception.

Your principal residence, if you live in Switzerland

Article 2(2)(b) exempts the principal residence at the place of legal and actual domicile of a natural person. Since an EU or EFTA national living in Switzerland is not covered by the law, in practice this exception serves third-country nationals holding a B permit. The conditions:

• a single dwelling unit: a family house that includes a separate flat cannot be bought as a principal residence, save in exceptional cases;
• no letting to third parties, even in part, parking spaces included;
• a direct purchase, in your own name (Art. 8 OAIE);
• above 3,000 m² of land, the land register refers the file to the cantonal authority, which checks that it is not an investment (Art. 18a(2)(c) OAIE).

If you are preparing to move to Switzerland, the FOJ states, on the basis of a 2012 ruling of the Federal Supreme Court, that the principal residence may be bought before you move in if the transfer of domicile is imminent and you make it plausible; the authority then sets conditions and checks that they are met.

Property received or shared within the family

Article 7(a) to (c) exempts the statutory heir within the meaning of Swiss law, a relative of the seller in the direct line, their spouse or registered partner, and anyone who is already a co-owner of the property. An heir appointed by will who is not a statutory heir may receive the property but must sell it within two years, unless they have close ties with it that are worthy of protection (Art. 8(2)).

Real estate investments traded on a market

Article 4(1)(c), (c^bis) and (e) does not count as an "acquisition of real estate" the purchase of units in real estate funds or shares in real estate SICAVs that are traded on a regular market, nor that of shares in real estate companies listed on a stock exchange in Switzerland. These investments are therefore free under current law. Our guide how to invest in Switzerland compares them with the other investments accessible from abroad.

3. Cross-border worker: can you buy a home near your place of work?

Yes, if you are an EU or EFTA national holding an EU/EFTA cross-border commuter permit: you may buy, without authorisation, a secondary residence in the region of your place of work. Article 7(j) of the LFAIE exempts nationals who, as cross-border workers, acquire a secondary residence in the region of their place of work; the provision names nationals of EU or EFTA states and the British nationals covered by the agreement of 25 February 2019 on citizens' rights.

You remain a person abroad, since your domicile is outside Switzerland: it is this exception, and this exception alone, that opens the purchase to you. It applies only to a secondary residence linked to your work; a flat to let or a plot of land to resell remain subject to authorisation and, in practice, out of reach; a holiday chalet is possible only on the conditions set out in section 4 (cantonal authorisation, tourist location, quota).

The conditions to meet

For the land register to record the purchase without referring the file to the cantonal authority, Article 18a(3) of the OAIE requires:

• a valid EU/EFTA cross-border commuter permit (G permit);
• a written declaration in which you undertake to use the property as a secondary residence;
• a plot area that does not exceed 1,000 m²; above that, the authority of first instance examines the file.

The FOJ's questions and answers (in French) add four rules on use:

• the home must make your work in Switzerland easier, for example by shortening your commute;
• it comprises a single dwelling unit;
• you use it yourself for as long as you work in the region as a cross-border worker, without letting it, even in part, or letting the parking space bought with it;
• a parking space on its own, without the home, remains subject to authorisation.

What the law does not specify: neither the LFAIE, nor the OAIE, nor the FOJ puts a figure on the extent of the "region of the place of work". A studio in Geneva for a cross-border worker who lives in Annemasse and works in Geneva is the clearest case, since it shortens the commute; for a property further from your place of work, check with the authority of the canton where the property is located before you sign.

4. Living abroad: on what conditions can you buy a secondary residence or a holiday home?

Only with an authorisation from the canton where the property is located, and only if that canton has provided for the corresponding ground in its legislation. The purchase of a home by a person abroad, whether a house, a flat, a rental building or building land, is subject to authorisation and, according to the FOJ, ruled out where there is no ground for authorisation. Article 9 of the LFAIE allows the cantons to provide for three grounds: social housing, a secondary residence in a place with which you have very close ties, and a holiday home or a unit in an apartment hotel, within the limits of a quota.

The secondary residence for "extremely close" ties

Article 9(1)(c) covers a secondary residence in a place with which you have extremely close ties that are worthy of protection. Article 6 of the OAIE gives this its meaning: regular relations in order to safeguard overriding economic, scientific or cultural interests. Having family in Switzerland, spending your holidays there, taking a health cure or studying there is not enough. According to the FOJ, fourteen cantons have provided for this ground: Appenzell Ausserrhoden, Basel-Stadt, Fribourg, Graubünden, Jura, Lucerne, Neuchâtel, St. Gallen, Solothurn, Ticino, Uri, Valais, Vaud and Zurich. Geneva is not one of them. If this residence is no longer used as such, it must be sold within two years (Art. 11(2) OAIE).

The holiday home

A holiday home is authorised only in a tourist location designated by the canton (Art. 9(3) LFAIE) and within the limits of the cantonal quota (section 5). The federal rules apply in all cases:

• area: a net habitable floor area that does not, as a general rule, exceed 200 m², and, outside condominium ownership, a plot of no more than 1,000 m² (Art. 10(2) and (3) OAIE). Under the practice described by the FOJ, up to 250 m² of living area and 1,500 m² of land where an additional need is proven;
• one property per family: if you, your spouse or registered partner or your children under 18 already own a home of this kind in Switzerland, the first must be sold before the second is bought (Art. 12(d) LFAIE, Art. 11(1) OAIE);
• no year-round letting: temporary letting is allowed, but you must be able to use the home yourself at any time (Art. 11(2) OAIE);
• in your own name: by a natural person, never by a company (Art. 8 OAIE);
• time limit: the authorisation lapses if it is not used within three years (Art. 12(1) OAIE).

The cantons and municipalities may tighten these rules further: freeze authorisations in a locality, authorise only condominium ownership or a quota per development, or provide for a right of pre-emption (Art. 13 LFAIE). For an apartment hotel, Article 10 requires in particular that the hotel operator own at least 51% of the property and that at least 65% of the shares be operated on a lasting basis as a hotel.

The Lex Weber comes on top of the Lex Koller

Irrespective of nationality, the Federal Act on Second Homes (LRS, SR 702, known as the Lex Weber) prohibits the authorisation of new second homes in municipalities where they already account for more than 20% (Art. 6(1)). Homes created under the old law, that is, in accordance with the law in force before 11 March 2012 or covered by a final authorisation on that date (Art. 10), remain free to use, subject to cantonal or municipal law (Art. 11(1)). The Lex Weber also applies to Swiss buyers: a holiday home bought by a person abroad must therefore comply with both laws. In a mountain resort, check with the municipality whether the home is an old-law home or whether it is subject to a use restriction noted in the land register.

5. How many holiday homes can each canton authorise?

In total, 1,500 authorisations per year for the whole of Switzerland, shared among 17 cantons; the other nine cantons, including Geneva and Zurich, have none. Article 11 of the LFAIE caps the national quota at 1,500 units and instructs the Federal Council to allocate it according to the cantons' tourism importance and the share of land already in foreign hands. Annex 1 of the OAIE sets this cap at 1,500 authorisations per year and gives the breakdown.

Three points made by the FOJ: Appenzell Ausserrhoden and Nidwalden authorise only holiday homes, and Schaffhausen only units in apartment hotels. In a canton without a quota, a person living abroad cannot buy a holiday home: no cantonal ground allows it.

Unused units are carried over to the following year. If they have not been used by 31 October of that year, the FOJ allocates them among the cantons that have exhausted their quota and apply for them, up to a maximum of half their annual quota; units carried over or allocated that have not been used by 31 December lapse (Art. 9(3) to (7) OAIE). The number of units still available in a resort can be obtained from the cantonal authority.

6. How does the procedure work, and what do you risk without authorisation?

Authorisation is requested from the cantonal authority of the place where the property is located, as soon as the transaction is concluded; without it, the sale has no effect, then becomes void, and the buyer faces criminal penalties. Article 15 of the LFAIE entrusts the decision to a cantonal authority of first instance, that of the canton where the property is located.

The steps

1. The application: as soon as the transaction is concluded, anyone whose liability to authorisation cannot be ruled out from the start applies for authorisation, or for a decision finding that they are not subject to it (Art. 17(1) LFAIE, Art. 15(1) OAIE).
2. The notary and the land register: the notarial deed is proof of the facts that the notary certifies having verified. A mere general declaration of non-liability has no evidential value, except for declarations on the intended use, such as the cross-border worker's (Art. 18(2) and (3) OAIE). If the land registrar cannot rule out liability to authorisation, they suspend the entry and give you 30 days to refer the matter to the authority; otherwise, the application for entry is rejected (Art. 18(1) LFAIE).
3. The decision and the appeal: the time limit for a cantonal appeal is 30 days; the FOJ and the municipality may also appeal (Art. 20(2) and (3) LFAIE).

Some authorities of first instance, according to the list published by the FOJ (as at 21 October 2026), given under their official names: in Geneva, the Direction juridique du Département des institutions et du numérique; in the canton of Vaud, the Commission foncière, Section II; in Valais, the Office juridique du Service du registre foncier; in Fribourg, the Commission pour l'acquisition d'immeubles par des personnes à l'étranger; in Neuchâtel, the COMACQ; in Ticino, the Autorità cantonale di I. istanza LAFE, in Lugano; in Graubünden, the Grundbuchinspektorat und Handelsregister; in Bern, the regional government offices (préfectures); in Zurich, the district councils. Full contact details are given in the FOJ document on the cantonal authorities (in French). Processing times and fees are not set by federal law: ask the authority concerned.

The consequences of buying without authorisation

• For the sale: without an authorisation that has become final, the transaction has no effect; it is void if it is executed without authorisation, if authorisation is refused or revoked, or if the land register rejects the application for entry. Payments already made can be reclaimed within one year of becoming aware of this right, and at the latest within ten years of their execution (Art. 26(1), (2) and (4)).
• For the property: the cantonal authority acts of its own motion to restore the previous situation; if that is impossible or inappropriate, the court orders a public auction, the buyer recovers only their cost price and any surplus goes to the canton (Art. 27(1) and (2) LFAIE).
• Under criminal law: intentionally executing a void transaction is punishable by a custodial sentence of up to three years or a monetary penalty, or from six months to three years if the offender acts for commercial gain; negligence, by a fine of up to 50,000 francs (Art. 28). The same penalties apply to anyone who provides inaccurate information (Art. 29).

7. What would the reform put to consultation in 2026 change?

The Federal Council put a tightening of the Lex Koller to consultation from 15 April to 15 July 2026; as at 26 October 2026, it has not yet submitted a dispatch to Parliament and none of these measures is in force. Everything that follows describes a preliminary draft, which may be amended or dropped; the rules in sections 1 to 6 remain those that apply.

On 29 January 2025, when it rejected the popular initiative "No to a Switzerland with 10 million!", the Federal Council decided on accompanying measures, including a housing component, and instructed the Federal Department of Justice and Police to prepare an amendment of the LFAIE. The initiative was rejected by the people and the cantons on 14 June 2026. The opinions received during the consultation were published by the FOJ on 27 July 2026.

According to the preliminary draft and the press release of 15 April 2026 (both in French), the reform would:

• make the principal residence of third-country nationals living in Switzerland subject to authorisation, with a single dwelling unit, and require them to sell it within two years if it ceased to be their principal residence;
• exempt commercial premises only if they serve the buyer themselves, which would end the purchase of premises in order to let them;
• lower the cap on holiday-home quotas from 1,500 to 750 units, of which 150 would be reserved for cantons that do not have a "holiday home" ground, and once again count resales between persons abroad against the quota;
• make the purchase of units in real estate funds and SICAVs traded on a regular market and of shares in listed residential real estate companies subject to authorisation, with checks entrusted to stock exchange participants;
• deal with housing for hotel staff, in response to a parliamentary motion.

What the preliminary draft would not touch: Article 7(j), which opens the secondary residence to EU and EFTA cross-border workers, is not among the articles amended. The explanatory report points out that EU and EFTA nationals living in Switzerland remain outside the authorisation regime. The progress of the procedure can be followed on the FOJ's Lex Koller revision page (in French).

8. How should you prepare the financing and the payment in francs?

The price is paid in Swiss francs to the notary; if your own funds are in euros, the exchange rate applied at the time of conversion weighs directly on your budget. Before that, two points of law deserve your attention.

The financing can itself fall under the Lex Koller

Article 1(2)(b) of the OAIE treats as an acquisition of real estate the financing of a purchase or a construction where the agreements, the amount of the loans or the debtor's financial situation place the buyer in a position of particular dependence on the creditor. In these circumstances, a loan granted by a lender who is itself a person abroad may come within the scope of the law. For premises serving as a permanent establishment, the FOJ specifies that the financing and the acquisition of a mortgage note are also free.

The terms of a mortgage loan for a buyer living outside Switzerland, such as the share of own funds required or how income in euros is taken into account, are a matter for each bank's policy: check with the lender before you sign a purchase agreement. If you are a cross-border worker and are instead buying on the French side with a salary in francs, our guide to buying property in the border zone with a salary in CHF covers the French borrowing rules.

Converting and transferring your own funds

The amount to be paid to the notary is in francs. Agree the payment date with the notary, so that the funds are credited before the signing, and plan the conversion accordingly. An account in the buyer's name makes it easier to check the origin of the funds.

9. Key takeaways

The Lex Koller does not ask "are you a foreigner?", but "where are you domiciled, which state are you a national of, and what do you intend to do with the property?". A European living in Switzerland or a C permit holder buys freely. A third-country national with a B permit buys their principal residence freely, provided they live in it. An EU or EFTA cross-border worker buys a secondary residence near their work freely, provided they occupy it themselves. For anyone else living outside Switzerland, a home can be bought only with a cantonal authorisation, in practice for a holiday home in one of the 17 cantons that have a quota.

Three reflexes before you sign: check your status on the day of the transaction, not on the day you started looking; ask the authority of the canton where the property is located if in doubt, in particular about the "region of the place of work" or the quota units available; follow the reform, which could change the picture for third-country nationals and investors, but which is not in force as at 26 October 2026.

10. Frequently asked questions