Buying property in Switzerland as a foreign national

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Many families who move to Switzerland want to buy a home, and many foreign companies want to own their offices or production sites. Swiss law restricts the acquisition of residential property by persons abroad under the Federal Act on the Acquisition of Real Estate by Persons Abroad, known as the Lex Koller. Once the rules are understood, most families who actually live in Switzerland and most companies that use property for their business can buy without difficulty.

Who is a person abroad

The Lex Koller applies to persons abroad. These include foreign nationals who do not have their legal and actual domicile in Switzerland, nationals of states outside the European Union and EFTA who live in Switzerland without a settlement permit (C permit), and companies with their seat abroad or controlled by persons abroad. Swiss nationals, holders of a settlement permit and nationals of the European Union and EFTA who live in Switzerland are not persons abroad and can buy freely.

Buying a home to live in

A foreign national who lives in Switzerland with a residence permit may buy a main residence without an authorisation, provided that he lives in it himself. The property must be of a size appropriate for the family, and it cannot be let to others. Before the move, a family can reserve a property but needs to hold the residence permit when the purchase is completed.

Holiday homes and second homes

Persons abroad who do not live in Switzerland need an authorisation to buy a holiday home. The cantons that allow such purchases do so within annual quotas, usually only in certain tourist municipalities and for properties of limited size. In addition, the Second Homes Act limits the construction of new second homes in municipalities where they already make up more than 20 per cent of the housing stock, which applies to many popular resorts.

Commercial property

Property used for a business, such as offices, shops, warehouses and production sites, can be acquired by persons abroad and by Swiss companies they control without an authorisation, as long as it serves as a permanent establishment for the business. Residential units that are necessarily part of the business property may be included. Buying residential property as an investment, including through shares in real estate companies that hold mainly residential property, remains subject to the restrictions.

Financing and tax

Swiss banks finance residential property for residents, usually up to a share of its value, and expect the buyer to contribute part of the price from his own funds. Owners pay a transfer tax or land register fees in most cantons, an imputed rental value on a home they live in (abolished by the popular vote of 28 September 2025 with effect from 1 January 2029), and property gains tax when they sell. The tax consequences should be reviewed together with the residence and tax position, as described in the articles on moving to Switzerland and lump-sum taxation.

How Ressos Legal helps

I advise foreign families and companies on the acquisition of residential and commercial property in Switzerland, review Lex Koller questions and coordinate the purchase with the residence permit and the tax ruling. Contact me for a first conversation.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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