Purchase of immovable property in Switzerland by foreign nationals
The Lex Koller governs the acquisition of real property in Switzerland by foreign persons: who requires authorisation, which properties are subject to restrictions and what happens in case of non-compliance.
Lex Koller: purchase of real estate in Switzerland by foreign nationals
Anyone who is not a Swiss citizen and wishes to purchase property in Switzerland will encounter a specific body of legislation that is frequently overlooked but carries real consequences. The so-called Lex Koller, formally the Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents (ANRA), governs the conditions under which foreign persons may acquire and hold real property (buildings, land, etc.) on Swiss territory.
Who qualifies as a "foreign person"?
The ANRA defines a "foreign person" not only as foreign nationals living outside Switzerland, but also certain categories of legal entities domiciled abroad or controlled by foreign persons. Importantly, even foreign nationals living in Switzerland may fall within the scope of the law, depending on the type of property they intend to acquire.
EU and EFTA nationals residing in Switzerland with a B residence permit or C settlement permit are generally treated the same as Swiss citizens when purchasing their primary residence. However, the picture becomes considerably more complicated for secondary residences, investment properties, or undeveloped land.
Which properties require authorisation?
The purchase of a secondary residence or holiday apartment by a foreign person requires cantonal authorisation. The same applies to agricultural and forestry land. Furthermore, cantons have limited annual quotas for granting such authorisations, which makes the process far from straightforward.
For commercial properties (offices, retail premises, production facilities), the situation differs. Acquisition is generally possible without authorisation, provided the property genuinely serves a business purpose. The distinction between commercial and residential use is a critical point that must be assessed on a case-by-case basis.
Consequences of non-compliance
The Lex Koller should not be taken lightly. A purchase made in violation of the law can be declared null and void. Authorities may order the forced sale of the property. In practice, there are cases where buyers discover only after the deed has been signed that they are in an irregular legal position. These situations lead to lengthy and costly disputes.
It should also be noted that corporate transactions (share transfers, mergers, restructurings) can indirectly fall within the scope of the ANRA when they result in a transfer of control over companies that own real property in Switzerland.
The importance of early legal advice
Given the complexity of this area, it is essential to work with professionals who have thorough knowledge of both the federal legislation (ANRA, SR 211.412.41) and the relevant implementing ordinance (ANRAO, SR 211.412.411), as well as Ticino cantonal practice.
Haab Legal, based in Lugano, regularly assists foreign clients with property acquisitions in Ticino. Atty. Hugo Haab and Atty. Roberto Haab provide advice in six languages (Italian, German, English, French, Spanish, and Russian) and guide clients from the initial assessment through to the notarial deed.
Planning to buy property in Switzerland and need clarity on the Lex Koller?
For a personal consultation: info@haablegal.ch | +41 91 913 30 70
