What is the Lex Koller – a brief explanation
The Lex Koller, officially the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG), has, since the 1980s, restricted who is permitted to acquire real estate in Switzerland. In principle, ‘persons abroad’ require a cantonal authorisation to purchase residential property. Propertyowner.ch has already reported on this: Lex Koller – a strict reputation, a relaxed reality.
Anyone who is lawfully resident in Switzerland and holds a valid residence permit is currently not generally regarded as a “person abroad” and may purchase a main residence without requiring authorisation – regardless of their nationality. It is precisely this point that the planned tightening of the law addresses.
An overview of the key planned changes:
New permit requirement for third-country nationals without a settlement permit: This is the change with the greatest implications for foreign nationals living in Switzerland. Third-country nationals – that is, people from countries outside the EU/EFTA – without a permanent residence permit (C permit) will once again require authorisation to purchase a main residence. This permit requirement for third-country nationals residing in Switzerland had previously been abolished; the bill provides for its reintroduction. Citizens of EU and EFTA states are not affected by this tightening of the rules, as the Agreement on the Free Movement of Persons applies to them. People with a C settlement permit – regardless of their nationality – will also remain exempt.
Ban on listed residential property: In future, people living abroad will not be permitted to acquire either shares in listed residential property companies or regularly traded units in property funds. Until now, foreign investors have been able to gain access to the Swiss residential property market via the stock exchange without being subject to the existing Lex Koller regulations. This loophole is to be closed.
Commercial property exempt from authorisation only for own business use: Purchases of commercial property by persons residing abroad will only be exempt from the authorisation requirement if the property is used for their own business. Purely financial investments would therefore now require authorisation.
Halving of holiday home quotas: The quotas within which non-residents may purchase holiday homes are to be halved.
Relief for staff accommodation in hotels: As a counterbalance to the tighter restrictions, the bill implements a motion by Council of States member Martin Schmid (FDP/GR): hotels owned by persons resident abroad are to be able to build or acquire staff accommodation more easily. In future, these will be regarded as part of the business premises and will therefore be exempt from the Lex Koller – a measure to help tackle the shortage of skilled workers in tourist regions.
What is the status of the political process – and when could the stricter measures come into force?
The consultation on the revision ran from 15 April to 15 July 2026. During this phase, cantons, political parties, associations and other interested parties were able to submit their official comments. The feedback was wide-ranging: practically the entire spectrum was represented, from clear approval to sharp criticism from business associations and parts of the property sector.
Next, the relevant department will evaluate the comments received. On this basis, the Federal Council will decide how to proceed with the bill and will subsequently adopt a dispatch for Parliament. The National Council and the Council of States will then debate the bill, usually in several readings with the resolution of differences, before a final vote takes place. An optional referendum may be called against the adopted law; should this happen, the electorate will decide at the ballot box.
There is currently no specific date for the law to come into force – nor can there be at this stage, given the ongoing procedure. Experience shows that such controversial legislative amendments take several years from the consultation phase to their final entry into force, particularly if differences of opinion or a referendum are to be expected in Parliament. Until then, the current Lex Koller will continue to apply unchanged.
What does this mean for you as a property owner?
For the time being, nothing is changing from a legal perspective. Anyone who currently owns, wishes to sell or purchase residential property can continue to follow the provisions of the current Lex Koller.
The Swiss Property Owners’ Association is monitoring the ongoing legislative process and will provide updates on propertyowner.ch as soon as the Federal Council adopts its message to Parliament or there are further decisive procedural steps.
Sources
– cash.ch (Ringier Media Switzerland, AWP agency): ‘Tighter Lex Koller polarises politics and business’, 15 July 2026
https://www.cash.ch/news/top-news/verscharfte-lex-koller-polarisiert-politik-und-wirtschaft-953201
– GMX.CH News (sda news agency): “Federal Council’s plans for the Lex Koller are causing divisions”, updated on 15 July 2026
https://www.gmx.ch/magazine/schweiz/bundesratsplaene-lex-koller-sorgen-frontenbildung-42505960
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