A foreign non-resident cannot assume that an attractive Swiss property is legally available to them. Under the Federal Act on the Acquisition of Immovable Property by Persons Abroad—commonly called Lex Koller—many acquisitions require cantonal authorisation, and authorisation exists only for specified grounds. The property type, buyer status, canton and legal structure all matter.
Never make the financing plan before answering the Lex Koller question. A bank indication cannot turn a prohibited acquisition into a permitted one.
The Federal Office of Justice updated its guidance in February 2026 and stresses that the competent canton decides the individual case. It also makes one point especially clear: owning Swiss property does not give a foreign buyer a residence permit.
The three questions that decide the legal route
- Is the buyer a “person abroad” under Lex Koller? Nationality, residence, permit status and foreign control of an entity are relevant.
- Is the asset a type of property that requires authorisation? Residential and commercial property are treated differently, and use matters more than marketing language.
- Is the proposed transaction legally an acquisition? Shares, long leases, rights of first refusal, financing and control arrangements can fall within the rules even without a simple land-register purchase.
EU/EFTA nationals legally resident in Switzerland and certain third-country nationals with qualifying residence status can fall outside the “person abroad” category for relevant acquisitions. A non-resident holiday-home buyer generally remains within the regime. Company ownership does not automatically solve the problem; a Swiss company under foreign control may itself be treated as a person abroad.
What non-residents may be able to buy
| Property/use | Typical Lex Koller position | Due-diligence focus |
|---|---|---|
| Holiday home in an authorised tourist area | May be possible with cantonal authorisation and available quota | Location, floor area, existing foreign ownership and rental restrictions. |
| Second home for a qualifying cross-border commuter | May be possible under narrow conditions | Work location, regular use and cantonal evidence. |
| Permanent residential investment | Generally restricted for a non-resident | Do not rely on a company wrapper or future permit assumption. |
| Business premises used for an economic activity | Often outside authorisation requirement | The actual business use must be genuine; mixed or speculative residential use changes the analysis. |
| Land bank or development structure | Fact-sensitive and potentially restricted | Control, use, financing, future conversion and beneficial owner. |
Holiday homes: quota and canton come first
A holiday apartment in a recognised tourist municipality is the best-known non-resident route, but it is not an automatic entitlement. Federal and cantonal conditions, annual quotas and local second-home restrictions can all apply. The notary or cantonal authority should confirm authorisation availability before the reservation agreement becomes economically irreversible.
Official statistics show how concentrated these transactions are. In 2024 the Federal Office of Justice recorded 346 handovers nationally under the published statistics; Valais accounted for 191 and Graubünden for 97. The numbers describe completed handovers within the reporting system, not the entire Swiss real-estate market and not a forecast of permit availability.
What the five-year series tells us
Recorded handovers fell from 639 in 2021 to 346 in 2024. That decline should not be read as a simple fall in foreign demand: quotas, transaction timing, property supply and cantonal reporting all influence the total. It is useful context for advisers and buyers, but not a substitute for the current status of a particular parcel.
Mortgage reality for a non-resident
Swiss lenders can finance permitted non-resident acquisitions, but underwriting is conservative and bank-specific. Expect the bank to examine income, liquid assets, currency mismatch, age, tax residence, the property’s resale market and the ability to service debt under a stressed interest rate. A higher down payment than for a resident home purchase is common in practice, but there is no single statutory non-resident percentage that applies to every bank.
Do not move investment assets to a bank merely to obtain an indicative mortgage before confirming the acquisition is permissible. Ask for the full economic package: loan margin, amortisation, valuation haircut, pledged portfolio terms, custody and management fees, currency risk and what happens if the bank can no longer service your country of residence.
Purchase costs and ongoing tax
Costs vary by canton and commune. The Swiss government portal notes that transfer taxes or comparable fees can range roughly from 1% to 3.3% of the purchase price depending on canton, while notary and land-register costs are separate. Owners can also face wealth tax, property tax in some locations, income-tax treatment of rental or imputed value, and real-estate capital-gains tax on sale. A buyer’s residence country may tax the property or income too, usually with treaty relief mechanisms to analyse.
| Budget line | When it arises | Question to price before signing |
|---|---|---|
| Transfer tax / transfer fee | Acquisition | Which canton charges it and who bears it under the contract? |
| Notary and land register | Acquisition and mortgage registration | Is the quote fixed, tariff-based or value-based? |
| Lex Koller legal work | Before and during authorisation | Who prepares the filing and what happens if authorisation is refused? |
| Mortgage and pledged-assets cost | Ongoing | What is the all-in rate and custody/management cost? |
| Income, wealth and property taxes | Annual | How do canton, use and owner residence interact? |
| Capital-gains tax | Sale | How does holding period affect the cantonal rate? |
The 2026 tightening proposal is not current law
In April 2026, the Federal Council opened consultation on a proposal to tighten Lex Koller, including changes affecting holiday homes and other acquisitions. The consultation closed in July. A proposal is not enacted law. Buyers should track the legislative process, but contracts and advice must distinguish the rules currently in force from possible future amendments.
A safer transaction sequence
- Obtain a written buyer-status and property-use analysis from qualified Swiss counsel or the responsible canton.
- Check quota, second-home, zoning, construction and rental restrictions for the exact parcel.
- Make the reservation and purchase obligations conditional on required authorisation and financing.
- Commission technical, title, easement and tax due diligence.
- Compare financing on an all-in basis, including any assets the bank expects you to place.
- Complete the cantonal authorisation and notarised deed process.
- Register ownership and retain the complete evidence file for tax, bank and later-sale reviews.
If a Swiss bank relationship is needed for the deposit, mortgage or ongoing costs, assess it alongside the property structure. Our remote Swiss account service and non-resident fee guide explain the banking side. They do not replace Swiss property counsel or a cantonal ruling.
Coordinate the banking file with the property plan
We can help prepare the Swiss banking and source-of-funds side of a permitted purchase, working alongside your notary, lawyer and tax adviser. We do not provide a Lex Koller approval or guarantee mortgage acceptance.
Primary sources and review date
Reviewed 18 October 2026. Rules and bank policies can change; check the linked primary source before acting.
