Foreign Property Ownership in Switzerland

Foreigners can buy property in Switzerland, but they must follow strict rules under the Lex Koller law. Non-residents are allowed to purchase approved holiday homes only in designated tourist areas, and there are often size limits and quotas to consider. However, foreigners who live in Switzerland and hold a C permit, as well as most EU/EFTA residents, enjoy almost the same property rights as Swiss citizens.

Under the Lex Koller, non-resident foreigners can only own one second home in Switzerland and cannot resell it for 5 years (except in extremis - death, divorce, bankruptcy, in which case it can be sold but without any capital gain).

Yes, there can be resale restrictions in Switzerland. Properties bought under Lex Koller may require approval before being sold to another foreigner, and some cantons impose a minimum ownership period (often around five years). In areas with second-home quotas, resales may also be limited or subject to local regulations, especially if the property’s use changes.

Properties built before 2012 are not recorded in the land registry as being either primary or secondary residences and can therefore be sold as either.

A foreigner can purchase property in Switzerland only through a company that is registered in Switzerland and controlled by Swiss residents. Companies that are foreign-controlled or based overseas are considered foreign buyers under the Lex Koller law. This means they must obtain authorisation and are restricted to buying specific holiday properties in designated areas.

B permits allow foreign residents to buy a primary residence in Switzerland. However, purchasing second homes or investment properties typically requires special authorisation. On the other hand, a C permit grants permanent residency and gives the same property rights as Swiss citizens. This means that C permit holders can buy multiple properties without any restrictions.

Swiss cantonal regulations can vary significantly when it comes to property ownership. In many tourist cantons, such as Valais, Vaud, Graubünden, Bern, and Ticino, foreign non residents are permitted to purchase holiday homes in specific communes. However, in larger city cantons like Zurich, Geneva, Basel, and Zug, the sale of properties is generally restricted to residents only.

Additionally, cantons administer annual quotas on property purchases and typically impose size limits on residential units, which are usually capped at around 200 to 250 square meters of living space and 1,000 square meters for the plot of land. It is important to obtain specific details and approvals from the respective cantonal authority.

A noteworthy exception is Andermatt in Uri, where new properties are exempt from the Lex Koller restrictions and the second home ban, allowing foreigners to buy and resell more freely, including through companies. Furthermore, individual communes may impose additional regulations, such as minimum holding periods and resale conditions. The national limit of 20 percent for second homes is enforced locally, which can affect property approval processes.

In conclusion, it is essential to check the specific rules for the canton and commune where you are interested in purchasing property, as permissions, quotas, and limits are set locally in addition to the federal Lex Koller regulations.

You can stay in Switzerland for up to 90 days within any 180 day period. If you wish to stay in the country for longer than 3 months, you need to apply for a short term Swiss residency permit (L permit) if staying up to a year. Or a longer term B permit, which lasts 5 years. Holding a residency permit requires you to spend at least 6 months of the year in Switzerland, pay Swiss taxes and have Swiss medical insurance.

You can become a resident in Switzerland if you meet the necessary requirements. You must either be employed by a Swiss company in the area or retire to Switzerland. The latter means you can not earn a salary in Switzerland, though you can receive dividends, and you will have to demonstrate you have the means to live there and pay local taxes.