Guide to the Lex Koller: Buying Property in Switzerland as a Foreigner

Buying property in Switzerland as a foreigner can be complex due to the Lex Koller Act, which regulates foreign ownership of residential real estate. Whether you are looking for a holiday apartment in Crans-Montana, a chalet in Valais or a primary residence after relocating to Switzerland, understanding the rules is essential. This guide explains who needs authorisation, which properties can be purchased, the exceptions under Swiss law and the practical steps to complete your purchase.

Since 1961, Switzerland has implemented regulations to limit and control real estate acquisitions by people residing abroad or those without Swiss nationality. The current law, commonly known as Lex Koller, primarily aims to prevent foreign real estate speculation and to maintain a balance between supply and demand in the Swiss market, particularly to protect the landscape and prevent an overheating of property prices.

You will need to obtain authorization if both of the following conditions apply:

• You are considered a foreign person under the law.
• The property you wish to acquire falls under the authorization regime of the Lex Koller.

The Lex Koller primarily applies to:

• Foreigners residing outside Switzerland.

• Citizens of the European Union (EU) or the European Free Trade Association (EFTA) residing in Switzerland without a B, C, or L permit.

• Nationals of other countries residing in Switzerland but without a permanent residence permit (C permit).

Note: Marital status can influence your situation. For example, joint acquisition with a Swiss spouse or a spouse holding a C permit can make the purchase easier.

It is therefore important to note that the following persons may freely acquire real estate in Switzerland:

• Swiss citizens, including dual nationals, whether domiciled in Switzerland or abroad.
• Citizens of the European Union (EU) or the European Free Trade Association (EFTA) who have their legal and actual domicile in Switzerland and hold a B or C residence permit, or, in certain cases, a short-term residence permit (L permit).
• Citizens of third countries who hold a permanent residence permit (C permit) and have their actual domicile in Switzerland.

Which Acquisitions Are Possible Without Authorization?

Several exceptions allow purchases without prior authorization:

No authorization is required if the property is intended exclusively or primarily for commercial or professional use, such as:

• Headquarters of a commercial or industrial company

• Workshop premises

• Offices for liberal professions (doctors, lawyers, etc.)

• Restaurants and shops

In the case of mixed-use properties, the residential portion must not exceed 50% to avoid requiring authorization. A later change in usage could necessitate retroactive authorization. If the residential proportion exceeds 50% at a later stage, retroactive authorization may be required from the relevant cantonal authorities. Commercial property generally includes offices, retail premises, hotels, restaurants, workshops and industrial buildings genuinely used for business purposes.

The following foreigners can acquire a property without authorization:

• EU/EFTA citizens legally residing in Switzerland with a B, C, or sometimes L permit.

• Citizens of other countries residing in Switzerland with a permanent residence permit (C).

Non-EU/EFTA nationals with a B permit can buy their primary residence without authorization but cannot rent it out and must personally occupy it. Proof of actual residence in Switzerland will be required (participation in local life, children's enrollment in local schools, vehicle registration, etc.).

3. Swiss Real Estate Companies and Investment Funds
The acquisition of shares or participation rights in a Swiss legal entity may, in certain circumstances, be treated in the same way as the direct acquisition of Swiss residential property under the Lex Koller.

This is particularly the case where an unlisted company is primarily engaged in acquiring, owning or trading residential real estate that would itself be subject to the Lex Koller. In such situations, acquiring shares in the company may require prior authorisation from the competent cantonal authority.

By contrast, the acquisition of shares in Swiss real estate companies listed on a Swiss stock exchange is generally not subject to the Lex Koller. The same generally applies to units in real estate investment funds that are regularly traded on the market.

Commercial real estate is treated differently. Properties used for genuine business activities—such as offices, shops, hotels, restaurants, workshops or industrial premises—are generally not subject to the Lex Koller authorisation requirement.

Because each transaction depends on the company's purpose, the nature of its assets and the rights attached to the investment, foreign investors should seek professional advice before acquiring shares in a Swiss real estate company or investment vehicle.

4. Secondary Residences and Quotas
The acquisition of holiday homes by foreigners residing abroad is subject to restrictions. An annual quota of approximately 1,500 properties is allocated among several cantons authorized to offer this type of purchase (Valais, Vaud, Ticino, Grisons, Bern, etc.).

The property must meet specific conditions:

• Maximum residential area: Varies by canton, typically around 200 m² (excluding cellars, attics, garages, balconies). Although exceptions may be granted in specific circumstances.

• Cantonal annual quotas: Higher in Valais (around 330 permits), very limited elsewhere (20 units per year in some cantons).

Important: It is advisable to check with the relevant cantonal register before proceeding to verify the availability of annual quotas.

The Lex Koller and Legal Entities
The Lex Koller applies not only to individuals but also, in certain circumstances, to legal entities such as companies, foundations and other organisations.

A Swiss legal entity may itself be considered a "person abroad" if it is effectively controlled by foreign individuals or entities within the meaning of the Act. In such cases, the acquisition of residential property in Switzerland may also be subject to the Lex Koller authorisation requirement.

When assessing whether a legal entity falls within the scope of the Lex Koller, the competent authorities consider several factors, including the ownership structure, voting rights, financing arrangements and the actual control exercised over the entity. The assessment is made on a case-by-case basis.

For this reason, foreign investors wishing to acquire Swiss residential property through a company or another legal structure should seek professional legal advice before proceeding with the transaction.

How to Apply for Lex Koller Authorisation ?
Obtaining a Lex Koller authorisation is usually a straightforward process when the purchase meets the legal requirements. In most cases, the application is prepared by the notary handling the transaction and submitted to the competent cantonal authority.

• Proof of identity

• Proof of residence or residence permit

• Tax certificate and financial documents

• Signed purchase contract (subject to authorization)

For residential property purchases, the authorities may require additional guarantees (insurance, non-rental commitments, etc.).

Buying Property in Crans-Montana as a Foreigner

Crans-Montana is one of Switzerland's most sought-after Alpine resorts and remains one of the few destinations where eligible foreign buyers may purchase a holiday property under the Lex Koller.

The resort offers a wide range of apartments, luxury chalets and investment opportunities while benefiting from a well-established international property market.

Foreign buyers should nevertheless keep in mind that:

• purchases remain subject to the Lex Koller where applicable;
• annual cantonal quotas may limit the availability of authorisations;
• each transaction is assessed individually by the competent cantonal authority;
• local legal and notarial advice is strongly recommended before signing any purchase agreement.

At ImmoCrans, we regularly assist international buyers throughout the entire acquisition process, from finding the right property to obtaining the necessary authorisations and completing the purchase.

Conclusion
Buying property in Switzerland as a foreigner is entirely possible, but the applicable rules depend on your residence status, nationality and the type of property you wish to purchase. Understanding the Lex Koller is therefore an essential first step before starting your property search.

While the legislation may seem complex at first, the purchase process is generally straightforward when you are well informed and supported by experienced local professionals. Whether you are looking for a holiday apartment, a luxury chalet or a primary residence, obtaining the right advice early in the process can help you avoid unnecessary delays and ensure your transaction complies with Swiss regulations.

If you are considering buying property in Crans-Montana or elsewhere in Valais, the ImmoCrans team is here to guide you through every stage of your project. From identifying eligible properties and explaining the Lex Koller requirements to working with local notaries and completing the purchase, we provide personalised support to help you buy with confidence. The Canton of Valais provides all directives regarding the application of the LFAIE (Lex Koller) and documents to be attached to acquisition requests.

Feel free to contact us if you would like to discuss your property project or receive expert advice tailored to your situation.

Frequently Asked Questions (FAQ)

Can foreigners buy property in Switzerland?
Yes, but the rules depend on your nationality, residence status and the type of property you wish to purchase. Swiss citizens and most residents can generally buy property without restrictions, while non-residents may require authorisation under the Lex Koller, particularly when purchasing residential property.

Can I buy a holiday apartment in Crans-Montana?
Yes. Eligible foreign buyers may purchase certain holiday apartments in Crans-Montana, one of Switzerland's designated tourist resorts. However, purchases remain subject to the Lex Koller, cantonal authorisation and the availability of annual quotas.

Can I buy a chalet in Switzerland as a foreigner?
In some cases, yes. Foreign buyers may acquire a holiday chalet in authorised tourist areas, provided the property complies with the conditions set out under the Lex Koller and the competent cantonal authority grants the required authorisation.

Can I rent out my holiday property?
Generally, yes. However, the conditions attached to the authorisation and the applicable cantonal regulations may restrict how the property can be rented. Buyers should verify these conditions before completing their purchase.

Can I buy property through a Swiss company?
Possibly. Purchasing property through a Swiss company does not automatically exempt a buyer from the Lex Koller. Depending on the company's purpose, ownership structure and the nature of its assets, the acquisition may still fall within the scope of the Act.

How long does Lex Koller approval take?
Processing times vary from one canton to another and depend on the complexity of the application. In straightforward cases, authorisation is often granted within several weeks, although more complex transactions may take longer.

Can UK citizens buy property in Switzerland?
Yes. Since Brexit, UK nationals are generally treated as third-country nationals under the Lex Koller. Whether authorisation is required depends on whether they live in Switzerland and on the type of property they intend to purchase.

Can US citizens buy property in Switzerland?
Yes, but US citizens who do not reside in Switzerland are generally subject to the Lex Koller when purchasing residential property. Holiday homes may only be acquired where permitted under the applicable federal and cantonal rules.

Can I buy investment property in Switzerland as a foreigner?
In most cases, foreign residents abroad cannot freely purchase residential investment property in Switzerland. The Lex Koller generally limits acquisitions to authorised holiday homes or other situations specifically permitted by law.

Do I need a Swiss residence permit to buy property?
Not necessarily. Swiss citizens and many residents may purchase property without special authorisation. Foreign buyers who do not reside in Switzerland may still acquire certain holiday homes under the Lex Koller, even without holding a Swiss residence permit, provided they meet the applicable legal requirements.