Swiss government to tighten foreign property ownership

Access to Swiss housing restricted for foreigners Keystone-SDA

The Swiss government has decided to tighten the federal law on home ownership by foreigners - commonly known as the Lex Koller law - in order to tackle the housing shortage. According to the changes, foreign homeowners will have to obtain authorisation before they can buy a home in Switzerland.

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The government intends to make the purchase of principal residences by nationals of countries outside the European Union and the European Free Trade Association (EFTA) subject to authorisation, it said in a press release. If these owners move, they will have to sell their property within two years.

Foreign owners would also no longer be able to buy commercial properties and then rent them out. The aim of this is to prevent purchases made solely for investment purposes.

The federal government also intends to tighten the screws on holiday homes. The annual quotas available to the cantons for authorising purchases by foreign owners will be reduced. And sales between foreigners will once again be subject to authorisation.

“These proposals are intended to refocus Lex Koller on its primary objective”, wrote the government on Wednesday. At the same time, they represent one of many accompanying measures adopted by the government in connection with the rejection of the popular initiative “No to ten million”, which intends to cap immigration. It will be put to a nationwide vote on June 14.

The preliminary draft of the Lex Koller revisions is out for consultation until July 15.

Lex Koller law

The Federal Act on the Acquisition of Immovable Property by Foreign Non-Residents (ANRA), commonly known as Lex Koller, was enacted in 1983 and is the successor to earlier legislation dating back to 1961. The primary goals of the law are to prevent excessive foreign ownership of property, curb foreign real estate speculation, and maintain a balanced real estate market for Swiss residents, thereby protecting the landscape and preventing property price overheating.

It restricts foreigners from buying residential property, though exemptions exist for commercial use, primary residences for B/C permit holders, and some EU/EFTA citizens.

Translated from French by AI/jdp

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