Investment property: Switzerland

Updated 6 October 2026

Switzerland is a stable and tightly regulated market.

Purchases by foreigners are governed by the federal act on the acquisition of real estate by persons abroad, often called Lex Koller. EU and EFTA nationals actually living in Switzerland and foreigners with a C settlement permit buy homes without authorisation. Everyone else counts as a person abroad: without authorisation they may only buy a main home at their actual place of residence and commercial premises. Buying property gives no right to live in the country.

Who can buy what

• Main home: a foreigner with a residence permit buys a flat or house where they actually live without authorisation. The canton looks at real residence: family nearby, work, children's school.
• Holiday home: only with cantonal authorisation, only in resorts designated by the canton and within the annual quota. 17 cantons allow such purchases. Living area up to 200 m², exceptionally 250 m², land up to 1,000 m², one such home per family. It may not be let all year round; short lets are allowed.
• Commercial premises: offices, factories, hotels and restaurants can be bought without authorisation. Building or letting housing does not count as business.
• Resorts with many second homes: in municipalities where they exceed 20%, the Second Homes Act all but stops new holiday flats.

What changes in 2026-2029

On 15 April 2026 the Federal Council opened a consultation on tightening Lex Koller, running until 15 July 2026. It proposes requiring authorisation for main homes bought by non-EU/EFTA nationals, with a forced sale within two years of leaving, smaller holiday home quotas and an end to buying commercial premises to let. It is still a draft, but plan purchases with time to spare. Separately, the referendum of 28 September 2025 abolished tax on imputed rental value: it disappears on 1 January 2029 together with the maintenance deduction, and cantons gain the right to tax second homes.

Buyer's costs

• Transfer tax is set by the canton: none in Zurich, about 3% in Geneva, up to 3.3% in Vaud including the municipal levy.
• Notary and land register: the deal is signed before a notary and entered in the land register; fees are usually a fraction of a percent of the price.
• Mortgage: banks require at least 20% equity, of which at least 10% not from pension savings, and check that housing costs at the imputed rate stay below a third of income.
• Annually: cantonal and municipal wealth tax, tax on rental income, property tax in some cantons.
• On sale: cantonal property gains tax, with the rate falling the longer you hold.

Common mistakes

• Buying a holiday flat outside a canton-approved resort or above the quota.
• Buying through a company to avoid authorisation: the deal is void and the canton can order a sale.
• Counting on a residence permit through purchase: there is no such route.

What we do

We check whether you need authorisation and in which canton it is realistic, shortlist properties, check the land register, prepare the cantonal application and support the deal before the notary. If your goal is relocation, we work out a residence route through work, business or lump-sum taxation. We quote after a consultation.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

FAQ