Buying Property in Switzerland as a Foreigner (2026)
Switzerland places strict limits on foreign property ownership. The federal statute known as Lex Koller (BewG) prevents most non-residents and certain foreign nationals from buying Swiss residential real estate without prior cantonal authorisation — which is very rarely granted for standard purchases. Whether a transaction is legally possible at all depends entirely on the buyer’s residence status, permit type, and intended property use. This guide sets out the rules as they stand in 2026.
The Central Restriction: Lex Koller (BewG)
The legal basis is the Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland (BewG), universally known as Lex Koller. First enacted in 1983 and substantially revised in 1997, the law prohibits “persons abroad” (Personen im Ausland) from acquiring certain categories of Swiss real estate without prior authorisation from the relevant cantonal authority.
The full text of the BewG is publicly available on fedlex.admin.ch. Key operative provisions are:
- BewG Article 1 — Statement of purpose: to prevent the acquisition of Swiss land by persons abroad from distorting the residential property market
- BewG Article 2 — Defines the authorisation requirement and which transactions require it
- BewG Article 5 — Look-through rule for corporate entities: a Swiss company majority-controlled by foreign beneficial owners is treated as a “person abroad”
- BewG Article 7 — Statutory exemptions, including commercial property and property for the buyer’s own permanent residence where a permit entitles this
- BewG Article 8 — Federal quota system for holiday apartments in tourist zones
In practice, authorisations for residential property outside the holiday apartment quota are extremely rare. The law exists to protect Swiss housing stock from foreign speculative acquisition — a political objective with consistent cross-party support over more than four decades. For a detailed treatment of the statutory regime, see our dedicated guide to Lex Koller Switzerland.
Who Is Subject to Lex Koller?
Lex Koller applies to:
- Non-EU/EFTA nationals without a Swiss residence permit — citizens of the United States, United Kingdom, UAE, India, Australia, and all other third-country nationals without a valid Swiss permit
- EU/EFTA nationals without a Swiss B or C permit — an EU passport holder not resident in Switzerland (e.g. a German citizen living in Germany who wishes to buy a chalet in Graubünden) is subject to the same restrictions as any other non-resident
- Corporate entities with a foreign-majority beneficial owner — a Swiss AG or GmbH whose shareholders are predominantly non-resident foreigners will generally be treated as a “person abroad” under BewG Article 5
Who Is Exempt from Lex Koller?
The exemptions are tied primarily to Swiss residence status:
- Swiss citizens — entirely exempt, regardless of where they live
- EU/EFTA nationals holding a Swiss B permit — may purchase their primary residence in the canton where the permit is registered without authorisation; the property must genuinely serve as the main place of residence (BewG Article 7(1)(a))
- Foreign nationals of any nationality holding a Swiss C permit (settlement permit) — fully exempt; treated equivalent to a Swiss citizen for property acquisition purposes
- Frontier workers (G permit holders) — may purchase property in the Swiss border zone in which they work, for use as their primary residence, subject to cantonal rules
The practical consequence: if you are a non-EU national who has been resident in Switzerland for five or more years on a B permit and have upgraded to a C permit, property acquisition becomes straightforward. If you are still on a B permit, you may buy — but only your primary home, and only in your canton of residence. If you are not resident in Switzerland at all, you are almost certainly subject to Lex Koller.
For those on the path to Swiss residency, our guides on the B permit and how to immigrate to Switzerland set out the permit progression in full.
EU vs Non-EU Buyers: The Key Difference
The distinction between EU/EFTA and non-EU buyers matters most at the B permit stage:
| Buyer category | B permit | C permit | No Swiss permit |
|---|---|---|---|
| EU/EFTA national | Primary residence in permit canton — no authorisation needed | Unrestricted purchase | Subject to Lex Koller |
| Non-EU national | Does not automatically receive the EU/EFTA exemption — subject to Lex Koller unless a specific cantonal exemption applies | Unrestricted purchase | Subject to Lex Koller |
| Swiss citizen | Exempt | Exempt | Exempt |
This gap between EU and non-EU B permit holders is frequently misunderstood. Non-EU nationals on a B permit seeking to purchase residential property should obtain legal advice before proceeding, as the exemption available to EU/EFTA nationals does not automatically extend to them. The State Secretariat for Migration (SEM) publishes guidance on permit categories and associated rights.
Holiday Apartments: The Narrow Exception for Non-Residents
The one narrow exception available to non-resident foreigners for residential-type property is the purchase of a holiday apartment in a designated tourist zone. Under BewG Article 8, certain alpine and tourist municipalities are authorised to sell holiday apartments to foreigners subject to a federal quota system administered at cantonal level.
Annual federal quotas are limited (historically around 1,500 units nationally), and demand from international buyers far exceeds supply. Cantons allocate permits on a waiting-list basis, and authorised municipalities are specific — buyers cannot purchase any property in any ski resort and claim holiday apartment status. Properties acquired under this exception must be maintained as holiday use and may not be rented year-round as primary residences.
In practice, buyers targeting Swiss ski chalets and alpine apartments through this route should expect significant waiting times, a restricted geographic selection, and legal costs for the authorisation process itself. It is not a reliably accessible route for most non-resident buyers.
The Commercial Property Exception
The most viable and consistently available route for foreign buyers is commercial and industrial real estate. BewG Article 7(1)(b) explicitly exempts property acquired for genuine commercial or industrial use in Switzerland. This covers:
- Office premises used for an operating Swiss business
- Industrial, warehouse, or logistics facilities
- Retail and hospitality premises operated as a business
A non-resident foreign national or a foreign-owned Swiss company can acquire commercial property for business use without triggering Lex Koller. The key qualifier is genuine business use: the acquisition must be tied to actual commercial activity in Switzerland, not structured as a disguised investment in residential-adjacent real estate.
This is the primary planning route for international investors and business owners seeking a Swiss property foothold. Establishing a Swiss operating company — a GmbH or AG — that then acquires the commercial premises is a well-established structure. For a detailed treatment of company formation in Switzerland and the acquisition of commercial real estate in Switzerland, see our dedicated guides.
Why a Swiss Corporate Wrapper Does Not Bypass Lex Koller for Residential Property
A common misconception is that holding residential property inside a Swiss company sidesteps Lex Koller. It does not.
Under BewG Article 5, a Swiss company majority-owned by non-resident foreign nationals is treated as a “person abroad”. The cantonal authority will look through the share register to the beneficial owners. Structuring residential property inside a GmbH or AG with foreign shareholders does not create an exemption — it typically generates additional compliance exposure and potential unwinding obligations.
Any structure involving a Swiss corporate vehicle and residential real estate must be analysed against the Lex Koller beneficial ownership rules before execution.
Cantonal Authorisation: How the Process Works
Where authorisation is required under BewG Article 2, the buyer (or their legal representative) applies to the relevant cantonal authority (Bewilligungsbehörde) before or concurrent with execution of the notarial deed. The process involves:
- Submission of the application with full documentation: buyer identity and ownership chain, property description, intended use, and financing structure
- Cantonal review against BewG criteria — for residential property, this is a high bar that is very rarely met outside the holiday apartment quota
- Authorisation or refusal; refused applications may be appealed through the cantonal administrative courts
- Where authorised, the notary incorporates the authorisation reference in the deed
In practice, the notary will advise on whether authorisation is required before any transaction proceeds. Buyers should engage legal counsel with specific BewG experience before entering into any preliminary purchase agreement.
Costs of Acquisition: Taxes and Fees by Canton
Swiss property transaction costs vary materially by canton. The primary cost items are:
Property Transfer Tax (Handänderungssteuer)
This cantonal tax is levied on the purchase price at the point of transfer:
| Canton | Transfer Tax Rate |
|---|---|
| Zug | 0% (no transfer tax) |
| Zurich | ~1% (notarial and registration fees in lieu) |
| Valais | ~1.0% |
| Ticino | ~2.0% |
| Vaud | ~2.2% |
| Geneva | ~3.0–3.3% |
Zug’s absence of transfer tax is one of several fiscal advantages that make it attractive for property acquisition by businesses and individuals with the right permit status.
Notarial Fees
All Swiss property transfers require a notarial deed (öffentliche Beurkundung). Notarial fees are typically 0.1–0.5% of the transaction value, varying by canton and transaction complexity. Both buyer and seller are typically present; in some cantons the notary is appointed by the canton rather than the parties.
Land Register (Grundbuch) Registration
Registration in the Grundbuch is mandatory for any transfer to be legally effective — ownership does not pass until the Grundbuch entry is made. Registration fees are generally 0.1–0.3% of the purchase price. The Grundbuch extract (Grundbuchauszug) obtained during due diligence will disclose all existing encumbrances, mortgages, easements, and restrictions. Statistical data on Swiss real estate transactions is published by the Swiss Federal Statistical Office (BFS).
Real Estate Agent Commission
Broker commissions are typically 2–3% of the purchase price, paid by the seller in most cantons, though this varies and is negotiable.
Total acquisition costs for a buyer typically fall in the range of 3–5% of the purchase price depending on canton, excluding financing costs.
Mortgage Financing for Foreign Buyers
Swiss banks apply conservative loan-to-value standards set by the Swiss Financial Market Supervisory Authority (FINMA) and the Swiss Bankers Association:
- Primary residence: maximum LTV of 80% — the buyer must fund at least 20% equity
- Of that 20% equity, at least 10% must come from personal liquid assets — pension fund assets (Pillar 2 / BVG) may fund the remaining 10% but not the first tranche
- Investment and holiday property: maximum LTV of 65–75%, with stricter income serviceability requirements
- Amortisation: the mortgage must be reduced to 66.7% LTV within 15 years (indirect amortisation via Pillar 3a is permitted)
For foreign buyers without Swiss income history, Swiss bank financing is harder to obtain. Private banks and some cantonal banks are more flexible for high-net-worth clients, typically requiring substantial assets under management or ancillary deposits. A non-resident buyer should not assume that Swiss mortgage financing is automatically available and should obtain a written mortgage commitment before executing the purchase deed.
Ongoing Property Taxes and Imputed Rental Income
Swiss property ownership carries annual tax obligations that differ from most other jurisdictions:
Wealth Tax on Property Switzerland levies annual wealth tax at cantonal and communal level. Real estate is included in the taxable wealth base at its assessed fiscal value (Steuerwert), typically 70–80% of market value. Mortgage debt reduces taxable net wealth.
Imputed Rental Income (Eigenmietwert) Switzerland deems owner-occupiers to receive a notional rental income (Eigenmietwert) equal to approximately 60–70% of estimated market rent. This amount is added to the owner’s taxable income. In exchange, mortgage interest payments and certain maintenance costs are deductible. The system is subject to periodic reform debate but remains in force for 2026.
Real Estate Capital Gains Tax (Grundstückgewinnsteuer) Most Swiss cantons levy a specific tax on gains from property sales. The rate is inversely correlated with holding period: selling within two years of acquisition typically triggers rates of 30–40% on the gain; a holding period of 20+ years may reduce the rate to around 10%. This is a significant consideration for any short-term investment strategy.
The Transaction Process Step by Step
- Due diligence — verify Lex Koller status, confirm zoning, obtain and review the Grundbuch extract for encumbrances, charges, and easements
- Preliminary agreement — a non-binding letter of intent or, more formally, a notarised preliminary purchase agreement (Vorvertrag)
- Financing confirmation — obtain written mortgage commitment from the lender before execution of the deed
- Cantonal authorisation (where required under BewG) — must be obtained before or concurrent with the deed; the notary will confirm this requirement in advance
- Notarial deed — both parties sign before a cantonal notary; transfer tax falls due at this stage in applicable cantons
- Land Register registration — the notary submits for Grundbuch entry; legal ownership transfers upon registration
The full process from accepted offer to Grundbuch entry typically takes 6–12 weeks for straightforward transactions, and longer where Lex Koller authorisation is required.
Frequently Asked Questions
Can a US or UK citizen buy a house in Switzerland without living there? In practice, no — not a residential property. Non-resident citizens of the US, UK, and other non-EU/EFTA countries are subject to Lex Koller (BewG) and cannot acquire residential real estate without cantonal authorisation. Authorisations for standard residential property are not issued for investment purposes. The only exception is a holiday apartment in a designated tourist zone under the BewG Article 8 quota system.
What are the main Lex Koller restrictions on foreign property buyers? Lex Koller (BewG) prohibits “persons abroad” from acquiring Swiss residential real estate without prior cantonal authorisation under BewG Article 2. The restriction applies to non-resident foreign nationals, EU/EFTA nationals without a Swiss B or C permit, and Swiss companies majority-controlled by foreign beneficial owners (BewG Article 5). Commercial property is exempt where acquired for genuine business use (BewG Article 7(1)(b)).
Do EU citizens face different rules to non-EU citizens when buying property in Switzerland? Yes. EU/EFTA nationals holding a Swiss B permit may purchase their primary residence in their canton of registration without Lex Koller authorisation (BewG Article 7(1)(a)). Non-EU nationals on a B permit do not automatically receive this right. EU/EFTA nationals without any Swiss permit are subject to the same Lex Koller restrictions as all other non-residents.
Can a foreigner buy commercial property in Switzerland? Yes. BewG Article 7(1)(b) explicitly exempts commercial and industrial property acquired for genuine business use in Switzerland. This is the principal route available for foreign buyers seeking Swiss real estate exposure and is commonly structured through a Swiss operating entity.
Does buying through a Swiss company allow a foreigner to purchase Swiss residential property? No. Under BewG Article 5, a Swiss GmbH or AG majority-owned by non-resident foreign nationals is treated as a “person abroad”. Lex Koller looks through the corporate structure to the beneficial owners. A Swiss corporate wrapper does not create an exemption for residential property.
What cantonal authorisation is required for foreign property buyers? Buyers subject to Lex Koller under BewG Article 2 must apply to the cantonal Bewilligungsbehörde for prior authorisation. The cantonal authority reviews the application against BewG criteria. For standard residential property outside designated tourist zones, authorisation is very rarely granted. Where authorisation is refused, the buyer has recourse through the cantonal administrative courts.
Can a foreigner get a mortgage from a Swiss bank? It is possible but more difficult than for Swiss residents. Swiss FINMA/SBA guidelines require at least 20% equity for a primary residence (10% from personal liquid assets). Non-resident buyers without Swiss income history face additional scrutiny. Private banks and some cantonal banks offer solutions for high-net-worth clients, typically requiring substantial assets under management or ancillary deposits. A written mortgage commitment should be secured before executing the purchase deed.
What is the property transfer tax in Switzerland, and how does it vary by canton? Property transfer tax (Handänderungssteuer) is levied at cantonal level on the purchase price. Zug levies 0%; Zurich approximately 1% (via notarial and registration fees); Valais around 1%; Ticino around 2%; Vaud around 2.2%; Geneva 3.0–3.3%. Total buyer costs including notarial fees and Grundbuch registration typically run 3–5% of the purchase price. See our guide to commercial real estate in Switzerland for canton-by-canton cost comparisons.
What are notary costs for a property purchase in Switzerland? All Swiss property transfers require a notarial deed (öffentliche Beurkundung). Notarial fees are typically 0.1–0.5% of the transaction value, varying by canton and complexity. Grundbuch registration fees are a further 0.1–0.3% of the purchase price. Both are ordinarily paid by the buyer. The notary is also responsible for verifying Lex Koller compliance and submitting the Grundbuch application.
How is property recorded and protected in the Swiss Land Register (Grundbuch)? The Grundbuch is Switzerland’s official public register of real property ownership and encumbrances, maintained at cantonal level. Legal ownership only transfers upon Grundbuch entry — execution of the notarial deed alone is insufficient. The register records title, mortgages (Schuldbrief or Grundpfandverschreibung), easements, and other encumbrances. A full Grundbuch extract must be obtained as part of due diligence on any Swiss property transaction.
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Lex Koller compliance analysis, structuring a commercial property acquisition, coordinating with Swiss notaries and cantonal authorities, and understanding the interaction between property ownership and residence permit status all require legal expertise specific to Swiss property and corporate law.
Morgan Hartley and the Lawsupport team advise international clients on property acquisition structures, BewG compliance, Swiss company formation for commercial property holding, mortgage and financing structures, and the full transaction process from due diligence to Grundbuch entry. We work from Zug — Switzerland’s most favourable canton for both corporate and individual clients — and advise across all cantons.
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Lawsupport (Morgan Hartley Consulting) | Grafenauweg 4, Zug, Switzerland | +41 44 51 52 592 | info@lawsupport.ch