Lex Koller Switzerland 2026: What Tighter Rules Would Mean

Lex Koller Switzerland will once again be the political focus in 2026. The Federal Council on the 15th April, a consultation on stricter rules for the acquisition of land by persons abroad opened. This would affect, inter alia, the main dwellings of third-country nationals, holiday homes, leased commercial properties and investments in residential real estate companies and real estate funds. For buyers, sellers, developers and investors it is crucial: it is a template, not already applicable law.

Lex Koller Switzerland 2026: Where the reform stands

Lex Koller is the common name for the Federal Act on the Acquisition of Land by Persons Abroad, BewG for short. Its purpose is to limit the acquisition of Swiss soil by persons abroad. Whether a purchase is subject to approval does not depend solely on the passport. Residence, residence status, actual control of a company, purpose of use and type of property can also be decisive.

The Federal Council opened the consultation on 15 April 2026; it lasted until 15 July 2026. Next, the opinions will be evaluated. The Federal Council can then adopt a message to Parliament, adapt the draft or waive individual points. Only after parliamentary deliberations, any referendum period and entry into force would new rules apply.

The distinction between proposal and applicable law is central to transactions. Reservation agreements, sales contracts and investment decisions must not be formulated as if the preliminary draft were already binding. At the same time, it would be imprudent to completely hide possible changes in longer-running projects.

The main proposed changes at a glance

• Mayn apartments: Third-country nationals should need a new authorisation for the acquisition.
• Exit: If the apartment is no longer used as the main apartment, a resale obligation should apply in principle within two years.
• Commercial real estate: Acquisition for own business should remain possible; Pure investments by renting or leasing should be more restricted.
• Apartments: The cantonal quotas are to be reduced and transfers between persons abroad are to be reckoned.
• Indirect installations: Certain shares in listed residential real estate companies, real estate funds and real estate SICAV should be covered.
• Hotel staff: Cantons should be able to provide exceptions for staff apartments of hotel companies under defined conditions.

Mayn residence of third-country nationals: authorisation and obligation to sell

According to the preliminary draft, nationals of countries outside the EU and EFTA should have to obtain a permit again when acquiring a main apartment. The permit would be associated with the actual use as a main dwelling. If the residence is abandoned, the property should in principle be sold within two years.

For buyers, this means more than an additional formality. Residence status, funding, expected length of stay and exit scenario would be more closely related. Anyone who moves to Switzerland for an international activity should check before a reservation whether the person, object and planned use fit together under permit law. A later departure can create time pressure to sell and thus influence price, marketing strategy and tax consequences.

Also sellers and brokers would be required. An unclear acquisition entitlement can delay deed and transfer of ownership. In the case of new construction projects, interested parties must be segmented at an early stage without making improper assurances. Authorization questions belong before payment plan and handover date, not just before the land register entry.

Commercial real estate: own operation or pure investment?

Today, people abroad can purchase real estate without authorisation under certain conditions. The Federal Council wants to draw the line between operational use and pure capital investment again sharper. If a property is used for its own operation, the acquisition should still be possible without authorisation and in principle unlimited. The purchase with the aim of renting or leasing the property, on the other hand, should be restricted.

In practice, the demarcation is not always binary. A company can use a part itself, rent space to third parties, plan later extensions or integrate necessary apartments. The explanatory report provides for a quantitative limit for dwellings provided for by housing-sharing rules for permanent establishments. Mixed projects therefore require a land, use and participation analysis.

For companies, indirect acquisition structures are also relevant. Lex Koller checks not only the buyer registered in the land register, but also a possible foreign domination. Shareholder agreements, financing, voting rights and economic control must be documented consistently.

Apartments and tourism regions

The purchase of holiday apartments by persons abroad is already quotated and depends on cantonal permits. The proposal aims to reduce the annual quotas. In addition, any acquisition by a person abroad should burden the quota, even if the holiday apartment is taken over by another person abroad.

For tourism communities, the effect is multi-layered. Fewer approved purchases can reduce demand in certain segments. At the same time, municipalities vary greatly by second home share, hotel offer, price level, building land reserve and local demand. A national rule change therefore does not automatically lead to the same price effect in Graubünden, Valais, Ticino or the Bernese Oberland.

An opposite opening is provided for staff apartments of hotels. The cantons should be able to enable foreign-controlled hotel companies to acquire or build such apartments under certain conditions. The proposal thus addresses the shortage of staff and the tense housing situation in tourist areas.

Real estate funds and listed companies

The proposal for indirect real estate investments is particularly far-reaching. Persons abroad should only be able to purchase certain listed shares in residential real estate companies as well as regularly traded shares in real estate funds and real estate SICAV if there is a reason for approval. Because such reasons for approval are narrow, the assumption can be economically equivalent to a far-reaching exclusion.

The exact scope of application is crucial for fund management, banks, stock exchanges, custodians and investors. Among other things, identification, control, transitional law, tradability and effects on existing positions should be clarified. The purpose of consultation is precisely to examine the implementation and side effects of these proposals.

For investors, therefore: A possible change in the law is not a reason for hectic transactions. Relevant are definitive legal formulation, entry into force and any transitional provisions. Those who could be affected should document their structure and investment policy and follow political developments.

Possible market effects: one assessment, no forecast

The proposal is justified by the scarce living space in Switzerland. However, whether stricter acquisition rules significantly reduce the housing shortage depends on the size of the affected buyer groups in individual regions and segments. Supply, construction, population development, interest rates, spatial planning and local approval procedures continue to work simultaneously.

Our assessment: Specialised sub-markets could react most strongly – such as high-priced second homes, tourist projects with international demand or investment vehicles with a foreign investor base. The broad market for owner-occupied residential property is likely to remain more dictated by income, financing, available substance and interest rate environment. More background information Housing market Switzerland 2026: Why housing remains scarce.

For evaluations, therefore, no blanket Lex-Koller devaluation makes sense. Object type, location, previous buyer structure, authorized demand and alternative use are to be examined. The contribution Real estate prices Switzerland 2026: market, regions and opportunities shows why microlocation and object quality are more important than a national average.

Due diligence checklist for cross-border property purchases

1. Person qualifying: Clarify nationality, residence, residence status and actual economic entitlement.
2. Classify the object: main dwelling, holiday home, permanent establishment, investment object or mixed use.
3. Disclosure of structure: Document participations, voting rights, loans and control of the buyer company.
4. Examine cantonal practice: Clarify the licensing authority, quota and local requirements at an early stage.
5. Secure the contract: Clearly regulate reservation of approval, deadlines, reversal and cost consequences.
6. Vote on funding: Do not plan bank release and own funds separately from the approval process.
7. Exit thinking: Departure, change of use, resale and tax consequences as scenarios.

For investment properties, the economic test is added. Revenue, vacancy, financing and future investment needs must also bear if the buyer group changes. This fits the further contribution Investment property Switzerland: Return, cash flow and risks correctly calculated.

Frequent questions about Lex Koller 2026

Is the tightening of Lex Koller already in force?

No. The Federal Council opened a consultation proposal in 2026. Further legislative procedure and entry into force are still pending. Until then, the current BewG applies.

Are EU and EFTA nationals equally affected as third-country nationals?

No. The proposed new authorisation requirement for main dwellings is explicitly addressed to third-country nationals. Nevertheless, the specific entitlement to earn a living depends on residence, status, object and use.

Can foreign companies continue to buy operational properties?

The acquisition for use for the own company should remain possible. Pure investments by renting or leasing commercial real estate are to be more restricted according to the preliminary draft.

What should sellers do today?

Check the eligibility of potential buyers early, structure contracts with clear approval reservations and observe possible legal changes in the case of long project durations. An individual legal examination remains necessary.

Further real estate insights

• Housing market Switzerland 2026: Why housing remains scarce
• Real estate prices Switzerland 2026: market, regions and opportunities
• Investment property Switzerland: Return, cash flow and risks correctly calculated