Investing in Swiss real estate through funds and listed companies

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For many foreign investors, the simplest route into Swiss residential property is indirect. Shares in listed real estate companies and units of regularly traded real estate funds are exempt from the Lex Koller permit requirement. These instruments also offer liquidity and diversification that a single building cannot provide.

The Lex Koller exemptions

The Lex Koller generally treats the acquisition of shares in real estate companies as an acquisition of real estate. Two exceptions are important for investors. The acquisition of shares in real estate companies listed on a Swiss stock exchange does not require a permit, and the same applies to units of real estate funds whose units are regularly traded on the market. Foreign investors can therefore gain exposure to Swiss residential property through these instruments without any permit procedure.

Swiss real estate funds

Swiss real estate funds are collective investment schemes governed by the Collective Investment Schemes Act and supervised by the Swiss Financial Market Supervisory Authority. They are usually contractual funds managed by a fund management company, and many are listed on the SIX Swiss Exchange or traded regularly through a bank. Funds frequently hold large residential portfolios, but commercial and mixed portfolios are also common. Because units trade on the market, their price can be above or below the net asset value, and the resulting premium or discount is a feature that investors should understand.

Funds that hold property directly are themselves taxed on the income and wealth attributable to those properties, so that distributions from the corresponding portion are generally not subject to further income tax or withholding tax at investor level. The details depend on the fund’s structure and should be checked in its documentation.

Listed real estate companies

Several real estate companies are listed on the SIX Swiss Exchange. They own and develop office, retail and residential properties, and some also provide real estate services. As ordinary companies, they pay profit and capital tax, and dividends are in principle subject to Swiss withholding tax, which foreign investors may be able to reclaim in part under a double taxation agreement. Distributions from capital contribution reserves can be paid free of withholding tax.

Comparing direct and indirect investment

Indirect investment avoids notarial formalities, land register fees and transfer taxes on the purchase, and it allows positions to be adjusted quickly. On the other hand, investors accept market volatility and have no control over individual properties. For families who wish to use a property themselves, a fund or listed share is no substitute, although it can complement a direct holding in a broader portfolio.

What pays off in practice

Confirm that the instrument is listed or regularly traded, because unlisted vehicles may fall under the permit requirement.
Look at premiums and discounts to net asset value before buying fund units.
Review withholding tax and treaty relief for distributions to investors resident abroad.

How Ressos Legal helps

I advise foreign investors on the legal and tax framework for indirect investment in Swiss real estate and on how such investments fit into a wider holding structure. 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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