Proposed Tightening of Switzerland's Lex Koller: New Restrictions on Foreign Property Acquisition

Federal Council opens consultation on major amendments  •  15 April 2026  •  Consultation deadline: 15 July 2026

Executive Summary

On 15 April 2026, the Swiss Federal Council opened a public consultation (Vernehmlassung) on a significant tightening of the Federal Act on the Acquisition of Real Estate by Persons Abroad (BewG), commonly known as the “Lex Koller”. The proposed amendments aim to curb foreign acquisition of Swiss residential property against the backdrop of a tight housing market. The consultation period runs until 15 July 2026.[1]

Key takeaway: These proposals represent the most substantial proposed tightening of the Lex Koller in years. If enacted, they will significantly affect third-country nationals purchasing residential property, foreign investors in commercial real estate, holiday apartment buyers, and foreign holders of listed real estate securities in Switzerland.

Background and Context

Switzerland's housing market has been under considerable strain due to limited supply and growing demand. In January 2025, the Federal Council instructed the Federal Department of Justice and Police (EJPD) to prepare draft legislation for stricter Lex Koller rules. This initiative forms part of a broader package of measures announced in connection with the rejection of the popular initiative "No 10-Million Switzerland (Sustainability Initiative)" in January 2025.

Proposed Key Changes at a Glance

The draft legislation proposes five principal categories of change:

#	Area	Proposed change
1	Primary residences (third-country nationals)	Purchase by non-EU/EFTA nationals will require a permit. If the owner moves away, the property must be sold within two years.
2	Commercial properties	Own-use purchases remain permit-free. Purchases as capital investments (for letting | leasing) will be prohibited.
3	Holiday apartments & apart-hotel units	Cantonal quotas will be reduced. Resales between foreign persons will now count against quotas, closing a current loophole.
4	Listed real estate securities	Foreign persons will generally be prohibited from acquiring listed shares in residential real estate companies, real estate fund units, and SICAV units.
5	Hotel staff housing	Requirements for hotels to acquire staff housing will be relaxed (implementing Motion 22.4413 Schmid).

Detailed Analysis

1. Primary Residences for Third-Country Nationals

Currently, non-EU/EFTA nationals with a valid residence permit can purchase a primary residence without a Lex Koller permit. Under the proposed amendment, a specific acquisition permit would be required. If the buyer subsequently moves away, a new obligation to sell within two years would apply – preventing retention of Swiss residential real estate as a long-term investment.

2. Commercial Real Estate

The revision draws a clear line between operational and investment use. Foreign persons using premises for their own business may continue to purchase without a permit. However, acquisitions purely as capital investments – for letting or leasing to third parties – would be prohibited.

3. Holiday Apartments and Apart-Hotel Units

Two mechanisms are proposed:

• Reduced cantonal quotas for foreign purchases of holiday apartments.

• Resale quota impact: Currently, a sale between two foreign persons (e.g. a German selling to a French buyer) does not reduce the cantonal quota. Under the new rules, every acquisition by a foreign person – including resales – would count against the quota, and a new permit would be required.

4. Listed Real Estate Securities

In a notable extension of the Lex Koller framework, foreign persons would generally be prohibited from acquiring:

• Listed (exchange-traded) shares in residential real estate companies;

• Regularly traded units of real estate investment funds; and

• Units of real estate SICAV (investment companies with variable capital).

  
  

This aims to prevent indirect acquisition of Swiss residential property through listed securities.

5. Hotel Staff Housing (Relaxation)

The requirements for hotels to acquire staff accommodation will be eased, implementing parliamentary Motion 22.4413 (Schmid) to support the hospitality sector.

What this means for our Clients

• Third-country nationals residing in Switzerland – future residential property purchases may require an additional permit, and relocation could trigger a forced sale obligation.

• Foreign investors in Swiss commercial property – acquisitions for rental or leasing purposes (rather than own business operations) will face a potential prohibition.

• Foreign buyers of holiday apartments – reduced availability of permits and increased regulatory friction on resales.

• Foreign investors holding Swiss real estate securities (listed shares, fund units, SICAV units) – may need to reassess their positions.

• Hotels – may benefit from simplified rules for acquiring staff housing.

Our Recommendation: Consider Acting Before the New Rules Take Effect

While the proposed amendments are still at the consultation stage and will not enter into force before 2028 at the earliest, clients who are considering a Swiss property acquisition should be aware that the current, more permissive regime may represent a closing window of opportunity. We recommend the following:

• Third-country nationals planning to buy a primary residence should consider completing their purchase under the existing rules, which do not require a specific Lex Koller permit. Buying now avoids the risk of a future permit requirement and, critically, the proposed two-year forced-sale obligation upon relocation.

• Foreign investors seeking Swiss commercial property for letting or leasing should accelerate acquisition plans. Once the revised law is enacted, such purchases would be outright prohibited. Transactions closed under the current regime will benefit from grandfathering protections.

• Prospective holiday apartment buyers from abroad should act while cantonal quotas remain at current levels and the resale loophole is still available. Reduced quotas and the new requirement for resale permits will make future acquisitions both harder to obtain and less liquid on the secondary market.

• Foreign investors in Swiss listed real estate securities should consider building or completing their positions now. The proposed prohibition would bar new acquisitions of listed shares in residential real estate companies, fund units, and SICAV units.

In short: the legislative process provides a lead time of approximately two years during which the current rules remain in force. Clients with existing acquisition plans should use this period to secure their positions under the more favourable current framework. We strongly recommend seeking tailored advice early to ensure sufficient time for due diligence and transaction structuring.

Next Steps and Timeline

The public consultation runs until 15 July 2026. Following the consultation, the Federal Council will review responses and prepare a definitive legislative bill (Botschaft) for submission to Parliament. The parliamentary process (including possible referendums) means that final enactment, if approved, is unlikely before 2028 at the earliest.

We will continue to monitor developments closely and keep you informed of any material changes. Should you have questions about how these proposed amendments may affect your specific situation, please do not hesitate to contact us.

If you have any questions or need further information, please contact us at +41818510910 or via e-mail at info@nist-law.ch. We will be happy to assist you.

[1] Federal Council press release, 15 April 2026, https://www.admin.ch/de/newnsb/4mzivVX5Ko4dpap06YtuI

Source: Federal Council press release, 15 April 2026 - www.admin.ch

Disclaimer: This blog is provided for informational purposes only and does not constitute legal advice. The content reflects the proposals as published by the Swiss Federal Council on 15 April 2026 and is subject to change during the legislative process. Readers should seek professional advice before making any decisions based on this information.