Finance
Switzerland Plans Stricter Rules for Real Estate Purchases by Foreigners
Published by Global Banking & Finance Review®
Posted on April 15, 2026
2 min readLast updated: April 16, 2026
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Switzerland’s Federal Council has proposed tightening the Lex Koller real estate law to curb property purchases by non‑EU/EFTA foreigners, aiming to ease housing shortages. The draft includes permit requirements, resale obligations, and quota cuts pending mid‑July consultation.
Swiss Government Proposes Stricter Real Estate Rules for Foreign Buyers
Overview of Proposed Changes to Swiss Real Estate Laws
ZURICH, April 15 (Reuters) - The Swiss government on Wednesday said it wants to tighten rules that restrict the purchase of real estate in the country by foreigners amid concern over housing shortages and an upcoming referendum on whether to limit the population.
The governing Federal Council said in a statement it wants to amend the so-called "Lex Koller" law that limits foreign ownership of Swiss real estate, and would hold consultations on the proposed changes that will run until mid-July.
Key Proposals Under Consideration
Permit Requirements for Non-EU/EFTA Citizens
Under the proposals, citizens of countries that are not members of the European Union or the European Free Trade Association will need to obtain permits to buy main residences and must sell them within two years if they leave Switzerland.
Restrictions on Commercial and Holiday Property Purchases
Commercial Real Estate
The proposals also envisage barring such nationals from acquiring commercial real estate purely for rental or investment ends.
Holiday Homes
Purchase of holiday homes would be curbed by cutting cantonal permit quotas and tightening resale rules, they state.
Context and Public Concerns
Switzerland's higher living standards, strong corporate landscape and job creation have helped encourage immigration, feeding concerns that public infrastructure is being stretched.
Upcoming Referendum on Population Limits
In June, the Swiss will vote on a proposal that aims to stop the permanent resident population exceeding 10 million by 2050. The Federal Council has urged voters to reject the proposal.
(Reporting by Marleen Kaesebier;Editing by Dave Graham)
Key Takeaways
- •Foreigners from non‑EU/EFTA countries would need permits to buy main residences and must sell within two years if they leave Switzerland (Reuters) — this builds on long‑standing rules under Lex Koller that already require authorization for non‑residents to acquire residential property (en.wikipedia.org).
- •The proposals would prohibit non‑EU/EFTA nationals from buying commercial real estate purely for investment, tighten quotas and resale rules for holiday homes — reflecting concerns about housing shortages caused by foreign demand (chambers.com).
- •In June, Swiss voters will decide in a referendum whether to cap the permanent resident population at 10 million by 2050 — currently around 9.1 million — amid government warnings that it risks public infrastructure and EU relations (apnews.com).
References
Frequently Asked Questions about Switzerland plans stricter rules for real estate purchases by foreigners
1What changes is Switzerland proposing for foreign real estate buyers?
The Swiss government wants to tighten restrictions on foreigners buying real estate, requiring permits for main residences and stricter rules for holiday and commercial properties.
2Who will be affected by the new Swiss real estate rules?
Non-EU and non-European Free Trade Association nationals would need permits to buy main residences and face limitations on holiday and commercial property purchases.
3What is the Lex Koller law in Switzerland?
The Lex Koller law restricts foreign ownership of Swiss real estate to limit overseas property investment and regulate housing demand.
4Why is Switzerland tightening property purchase rules for foreigners?
Concerns over housing shortages and population growth have led the Swiss government to propose stricter property purchase rules for foreigners.
5What is the upcoming referendum about in Switzerland?
There will be a vote to limit Switzerland's permanent resident population to under 10 million by 2050, which is linked to concerns about infrastructure and immigration.
