Advisor for foreigners purchasing real estate in Switzerland
Are you dreaming of buying a cozy chalet in the Swiss Alps or a fashionable condo on Lake Lucerne? As a non-Swiss citizen you have to know the regulations.
Fearing a "clearance sale" in the country, Switzerland first introduced legislation restricting the purchase of real estate by foreigners in 1961. Since 1997, the rules are known under the name "Lex Koller" (Koller's law). The law was enacted by the federal government, bringing it into force thoughout Switzerland.
Which buyers are subject to Lex Koller legislation?
If you fall into one of the following groups, you are generally restricted of buying residential property:
- Non-Swiss citizens residing abroad
- EU / EFTA citizens residing in Switzerland without residence permit B, C or L
- Citizens of other foreign countries, including USA, residing in Switzerland without a C residence permit
Or, formulated differently, the following persons are allowed to buy residential property:
- Swiss citizens, including those with dual nationality, wo are residents in Switzerland or abroad
- EU/ EFTA citizens legally and actually residents in Switzerland, with a B or C residence permit, potentially also an L short term stay permit.
- Citizens of other countries, including USA, with a C permit and legaaly and actually living in Switzerland
Real estate may be purchased by a legal entity, if the company has its registered office in Switzerland and is controlled by individuals residing in Switzerland. This means that foreigners cannot use a shareholder company (Aktiengesellschaft) to circumvent the rules. The status of the private individual who is the beneficial owner of the company determines whether or not special authorizatiion is needed.
For more information and details read the Engel&Völkers article
or contact me directly; I'm happy to explain you the different options.
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