Restrictions on property sales still in place

The Swiss government has been asked by the House of Representatives to review its plan to lift restrictions on property sales to non-resident foreigners.

While the idea of abolishing the so-called Lex Koller is widely accepted, the parliamentarians said that any change to the legislation would have to be accompanied by strong measures to avoid speculation.

While those demanding the law be scrapped immediately say it is a hindrance to the development of the tourist trade, many representatives voiced concerns that it would lead to a building frenzy and drive up rents.

A majority voted in favour of asking cabinet to consider whether minimum residence requirements should be applied to property sales as well as how to combat the so–called “cold bed” problem – holiday residences that stay empty most of the year.

The government believes there is no reason to fear that foreign interests would gain too strong a foothold in Switzerland and that current restrictions inhibit the development of a totally free market.