Lex Koller Restrictions: Switzerland's Federal Act on the Acquisition of Real Estate by Persons Abroad (ANAG/Lex Koller) severely restricts property purchases by non-residents. Americans without Swiss residence permits face significant limitations on what they can buy.
Understanding Lex Koller
The Lex Koller law (officially ANAG - Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland) has restricted foreign property ownership since 1983. Its purpose: prevent foreign speculation from driving up Swiss property prices.
Who Needs Authorization?
- Non-EU/EFTA citizens without C permits (including most Americans)
- EU/EFTA citizens without B or C permits
- Foreign-controlled companies
- Non-residents regardless of nationality
Who is Exempt?
- Swiss citizens (including dual citizens)
- EU/EFTA nationals with B or C permits (for primary residence only)
- Non-EU nationals with C permits (including Americans with settlement permits)
Property Categories for Americans
✓ Generally Permitted (With Residence)
- Primary residence: If you hold a B or C permit, you can purchase one property as your main home
- Commercial property: For genuine business operations (not investment)
- Agricultural land: If you're a licensed farmer operating the land
⚠ Requires Cantonal Authorization
- Holiday homes: Limited quotas available in designated tourist areas
- Second residences: Very limited, requires special justification
- Residential investment property: Generally not permitted for non-residents
✗ Prohibited for Non-Residents
- Pure investment properties (buy-to-let residential)
- Land banking (undeveloped residential land)
- Multiple residential properties
- Properties exceeding cantonal size limits
Holiday Home Quotas: Each canton receives a limited annual quota for holiday home authorizations to foreigners. These are highly competitive, especially in popular areas like Valais, Graubünden, and Ticino. Some cantons have banned new holiday home sales to foreigners entirely.
The Holiday Home Exception
Non-resident Americans can potentially purchase a holiday home in Switzerland, but this requires cantonal authorization and is subject to strict conditions:
Holiday Home Requirements
- Location: Must be in a designated tourist zone
- Size limit: Typically max 200m² living space, 1,000m² land
- Usage: Personal holiday use only, limited rental allowed
- Resale restriction: Cannot sell for 5 years (some cantons longer)
- One property only: Maximum one holiday home per family
- Quota availability: Must have quota allocation remaining
Cantons Allowing Holiday Home Sales
Not all cantons permit holiday home sales to non-residents. Those that do include portions of:
- Valais (Zermatt, Verbier, Crans-Montana)
- Graubünden (St. Moritz, Davos, limited)
- Ticino (limited areas)
- Bern (Gstaad, limited)
- Vaud (Villars, limited)
Second Home Initiative Impact
The 2012 Second Home Initiative (Weber Initiative) further restricted new construction of second homes in municipalities where second homes exceed 20% of housing stock. This limits new holiday property development in most desirable Alpine locations.
Property Prices by Region
| Location |
Apartment (per m²) |
House (per m²) |
Notes |
| Geneva |
CHF 15,000-25,000 (~$16,800-28,000 USD) |
CHF 12,000-20,000 (~$13,440-22,400 USD) |
Most expensive city |
| Zurich |
CHF 12,000-20,000 (~$13,440-22,400 USD) |
CHF 10,000-18,000 (~$11,200-20,160 USD) |
Financial center |
| Zug |
CHF 14,000-22,000 (~$15,680-24,640 USD) |
CHF 12,000-20,000 (~$13,440-22,400 USD) |
Tax haven premium |
| St. Moritz |
CHF 20,000-40,000 (~$22,400-44,800 USD) |
CHF 15,000-35,000 (~$16,800-39,200 USD) |
Ultra-luxury resort |
| Verbier |
CHF 15,000-30,000 (~$16,800-33,600 USD) |
CHF 12,000-25,000 (~$13,440-28,000 USD) |
Ski resort premium |
| Ticino |
CHF 6,000-12,000 (~$6,720-13,440 USD) |
CHF 5,000-10,000 (~$5,600-11,200 USD) |
Italian-speaking region |
Purchase Process
- Verify eligibility: Confirm your permit status allows purchase without authorization
- If authorization needed: Submit application to cantonal authority before purchase
- Engage notary: All Swiss property transactions require a licensed notary (Notar)
- Due diligence: Title search, building permits, easements, land registry review
- Purchase agreement: Signed before notary with both parties present
- Land registry entry: Transfer recorded in Grundbuch (land registry)
- Payment: Typically through notary's escrow account
Transaction Costs
| Cost |
Amount |
Notes |
| Notary fees |
0.1-0.5% |
Varies by canton |
| Land registry |
0.1-0.5% |
Varies by canton |
| Property transfer tax |
0-3% |
Some cantons have none |
| Agent commission |
2-5% |
Usually paid by seller |
| Total buyer costs |
0.5-4% |
Much lower than many countries |
Financing Challenges: Swiss banks typically require 20-35% down payment. Non-residents may face higher requirements (40-50%) or difficulty obtaining Swiss mortgages entirely. Some US banks won't lend against foreign property. Plan for larger cash requirements.
Ongoing Costs
- Property tax (Liegenschaftssteuer): 0.05-0.3% of assessed value annually (varies by canton)
- Imputed rental value (Eigenmietwert): Even owner-occupied property generates taxable "income"
- Wealth tax: Property value included in net worth for wealth tax calculation
- Maintenance reserves: Condominium fees for apartments (typically CHF 2-5 (~$2.25-5.60 USD) per m²/month)
- Building insurance: Mandatory in most cantons, paid through cantonal monopoly insurer
Commercial Property
Commercial real estate is generally less restricted than residential. Non-residents can purchase commercial property for genuine business operations, though large transactions may still require authorization.
Permitted Commercial Purchases
- Office buildings for your operating business
- Retail premises you'll operate
- Industrial/warehouse facilities for business use
- Hotels (with operational business plan)
Still Restricted
- Purely passive commercial real estate investment
- Commercial-to-residential conversion projects
- Land speculation
C Permit Advantage: If you obtain a Swiss C permit (settlement permit), most Lex Koller restrictions disappear. C permit holders can purchase primary residences freely and have fewer restrictions on additional properties. This typically requires 10 years of residence.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Swiss property law is complex and varies by canton. Lex Koller regulations change periodically. Always work with a qualified Swiss real estate attorney and notary before purchasing property. Information current as of January 2026.