Lex Koller to be tightened: what owners, buyers and investors should know now

What the Lex Koller is actually about

The Federal Act on the Acquisition of Real Estate by Persons Abroad – known as the Lex Koller – has governed for decades the conditions under which people without Swiss residence, or without certain residence permits, may acquire property here. The law is a compromise: housing for the local population is to be protected, while commercially used space should remain as freely tradable as possible. Numerous exceptions have accumulated over the years. It is precisely those exceptions that are now up for discussion.

The Federal Council initiated the revision in connection with the accompanying measures following the rejection of the so-called ten-million initiative. The consultation ran from spring until mid-July 2026. The responses are now being evaluated; a dispatch to Parliament will follow as a next step. Several months, more likely years, will pass before anything enters into force.

What is specifically being proposed

Four points are central. First, nationals of third countries – that is, persons outside the EU and EFTA – would newly require authorisation to purchase a home they occupy themselves. Anyone moving away would have to sell the property again within a transitional period. Second, the acquisition of holiday homes by persons abroad is to be restricted further. Third, stricter rules would apply to commercial property: purchasing with the intention of letting or leasing would no longer be readily possible. And fourth – the capital-market element – persons abroad would in principle be prohibited from acquiring listed shares in residential property companies as well as regularly traded units in real estate funds and real estate SICAVs.

The last point in particular has prompted debate in the industry, because it affects indirect investments that were previously regarded as unproblematic. The final shape of the rules is open; Parliament will certainly rework the proposal.

What this means for sellers

Anyone intending to sell a flat or a house should take a sober look at the likely pool of buyers. If a buyer from abroad is in play, the authorisation question becomes a scheduling risk: proceedings take time, and a purchase contract subject to an authorisation condition remains in limbo until a decision is issued. That is already the case today and would occur more frequently under a tightened regime. In practice this means clarifying proof of financing, residence situation and permit status early, rather than discovering them at the notarial appointment.

For the vast majority of transactions in Central Switzerland, nothing changes. Sales between persons resident in Switzerland or holding a C settlement permit remain outside the authorisation requirement. But anyone holding a property in a tourism-oriented location should follow developments closely.

What buyers from abroad should bear in mind

The key distinction is between the law as it stands and what is being discussed. The existing rules currently continue to apply unchanged. Anyone who meets the requirements today can buy. A revision generally takes effect for the future; property already acquired is not retroactively withdrawn. Even so: if you are planning a purchase within the next one to two years anyway and meet the requirements today, you gain planning certainty by not putting the matter off indefinitely.

Whether bringing a purchase forward makes sense in an individual case depends on personal circumstances, financing and the property itself, and cannot be answered in general terms. A purchase should never be driven primarily by regulatory nervousness.

What this means for Central Switzerland

For the Zug, Lucerne and Zurich region the proposal is above all a signal. The housing market is tight, political sensitivity is high, and legislators are looking for levers that work quickly. Whether a tightening of the Lex Koller would noticeably reduce price pressure is disputed among specialists – the share of authorisation-subject acquisitions in total transaction volume is small. For individual segments, however, such as high-priced properties on Lake Zug or indirect holdings of institutional investors, the effect could still be considerable.