Switzerland Plans Tightening Restrictions on Property Acquisition by non-Swiss Nationals

The Federal Council intends to tighten the existing rules on the acquisition of property by non-Swiss nationals (“Lex Koller”). Under the proposed amendments, the acquisition of residential property by nationals of non-EU/EFTA countries will be subject to permit requirements. Furthermore, the purchase of holiday apartments will also be restricted. The proposal is open for public consultation until mid-July 2026.

The Federal Act on the Acquisition of Real Estate by Persons Abroad ("Lex Koller"; German/French) is a Swiss federal law that restricts the purchase of property by foreign non-residents to prevent over-foreignization and speculation. It requires non-residents to obtain authorisation before buying properties such as apartments or houses. Last week, the Federal Council announced plans to propose further restrictions to the Swiss Parliament (German/French). This proposal was developed with the public initiative to limit Switzerland’s population to 10 million in mind, which will be put to a people vote in June 2026. This blog post summarises the essential planned changes.

Proposed Amendments

Under the amended legislation, nationals of third countries (i.e., countries outside the EU and EFTA) will be required to obtain a permit for the acquisition of primary residences. Should they subsequently relocate from Switzerland, they will be obliged to divest the property within a two-year timeframe. Currently, permits are only required for the acquisition of holiday residences.

With respect to commercial real estate, a general tightening of restrictions is envisaged for foreign nationals. This restriction will also extend to nationals of EU and EFTA member states. Acquisitions by foreign nationals will remain permissible without authorisation and without limitation only where the properties are used for the acquirer’s own business operations. Investments made purely for capital appreciation, including rental or leasing arrangements, will be prohibited.

Restrictions will also be tightened for the acquisition of holiday apartments and residential units in apartment hotels. Firstly, cantonal permit quotas will generally be reduced. Secondly, every transaction between foreign nationals will count against the cantonal quota. This measure aims to prevent foreign owners from transferring holiday apartments among themselves without consuming the applicable cantonal quota.

Furthermore, the acquisition of listed shares in residential real estate companies, as well as fund and SICAV shares with real estate exposure by persons abroad, will be generally prohibited.

Deloitte’s View

This proposed restriction is a recommendation by the Federal Council aimed at combating rising real estate prices in Switzerland. The proposal is now entering a public consultation period, which will end in mid-July 2026. Based on the feedback received, the Federal Council will decide whether to submit these stricter measures to the Swiss Parliament. Deloitte will closely monitor further developments.

Authors

• Thomas Hug, Partner, National Tax Office
• Urs Sturzenegger, Partner, Legal
• Celine Bitterlin, Senior Manager, Legal
• Daniela Martinis-Arth, Manager, National Tax Office