Real Estate Lawyers Switzerland 2026: Lex Koller Reforms & Foreign-buyer Compliance

Foreign property acquisition in Switzerland entered a new era of uncertainty on 15 April 2026, when the Federal Council submitted proposed amendments to the Federal Act on the Acquisition of Real Estate by Persons Abroad, the law commonly known as Lex Koller. The proposals would tighten acquisition-permit requirements for non-Swiss buyers, extend restrictions to commercial and investment property, and impose stricter scrutiny on corporate and trust structures used to hold Swiss real estate. At the same time, construction-contract reforms that took effect on 1 January 2026 have already reshaped buyer remedies for building defects, creating fresh drafting obligations for every transaction involving new-build or renovation projects.

For foreign investors, property developers, in-house counsel and real estate lawyers in Switzerland, the convergence of these two regulatory shifts demands immediate compliance action.

Key takeaways at a glance:

• Lex Koller proposals (15 April 2026): foreign homeowners would need cantonal authorisation before purchasing residential property; commercial property restrictions and listed-company rules are also under review.
• Construction-contract reforms (1 January 2026): updated defect-notice periods, revised limitation windows and new retention/escrow standards are now in force.
• Immediate action required: every pending or planned cross-border acquisition should be re-assessed against the proposed rules, even before parliamentary debate concludes.

Lex Koller 2026, What the Federal Council Proposed

The Federal Act on the Acquisition of Real Estate by Persons Abroad (Lex Koller) has governed foreign property acquisition in Switzerland since its original enactment in 1983. Its purpose has always been to limit foreign ownership of Swiss residential property while permitting qualifying commercial acquisitions. According to the Swiss Federal Office of Justice, the law requires persons abroad, defined as non-Swiss nationals without permanent residence, or foreign-controlled entities, to obtain cantonal authorisation before acquiring real estate that falls within the Act’s scope.

On 15 April 2026, the Federal Council announced that it intends to tighten the existing rules on the acquisition of property by non-Swiss nationals. As reported by SWI swissinfo.ch, the amendments would require foreign homeowners to obtain authorisation before purchasing any residential property, closing loopholes that previously exempted certain transaction structures. Industry observers expect the changes to significantly narrow the available exemptions for corporate acquisitions and cross-border fund structures.

The proposed amendments introduce several headline changes that every real estate lawyer in Switzerland must track closely:

• Expanded residential restrictions: all foreign nationals, including those with certain residence permits, would face additional authorisation hurdles for residential purchases.
• Commercial property restrictions: as reported by lenews.ch, foreigners would be barred from purchasing commercial property for purely rental or passive-investment purposes, reversing the 1997 liberalisation that explicitly permitted such acquisitions.
• Listed property companies and REITs: access to Swiss-listed property vehicles and real-estate investment trusts would be tightened, closing indirect-ownership routes.
• Enhanced beneficial-ownership disclosure: trusts, foundations and multi-layered corporate structures would face mandatory disclosure of ultimate beneficial owners at the point of application.
• Increased cantonal reporting obligations: cantons would be required to maintain a register of foreign-owned properties and report acquisition data to the Federal Office of Justice.

Legislative Timeline

Who Will Be Affected

The proposed property purchase restrictions in 2026 would impact four distinct buyer categories:

• Individual non-residents: nationals of non-EU/EFTA countries without Swiss permanent residence face the tightest restrictions. The proposals would make it significantly harder to acquire residential or holiday property.
• Foreign companies and branches: Swiss branches of foreign companies and foreign-controlled Swiss companies would face new scrutiny. Acquisitions made through Swiss-incorporated special-purpose vehicles with foreign beneficial owners would require full disclosure and approval.
• Listed entities and property funds: the proposals target indirect ownership through listed property companies and collective investment schemes, aiming to prevent foreign investors from circumventing Lex Koller through capital-market instruments.
• Trusts and foundations: any trust or foundation with foreign settlers, beneficiaries or protectors seeking to acquire Swiss real estate would face mandatory beneficial-owner mapping and potentially a full acquisition-permit process.

Can Foreigners Still Buy Property in Switzerland?, Practical Scenarios

Despite the proposed tightening, foreign property acquisition in Switzerland is not being banned outright. The answer depends on residency status, nationality, entity type and the intended use of the property. EU/EFTA nationals with a B or C residence permit can currently purchase Swiss property without Lex Koller approval in most cases, as confirmed by advisory guidance from EY. Third-country nationals holding a C (settlement) permit are generally treated on par with Swiss citizens for acquisition purposes.

The following comparison table summarises the likely permit requirements under the proposed Lex Koller 2026 framework:

Industry observers expect the practical effect of the proposals to be felt most sharply by non-resident investors seeking holiday homes and by institutional investors using offshore fund structures. EU/EFTA nationals who are genuinely resident in Switzerland and buying a primary home are likely to remain largely unaffected, though even they should monitor cantonal implementation for nuances.

Acquisition-Permit Workflow for Real Estate Lawyers in Switzerland, Step by Step

Where an acquisition permit is required under Lex Koller, whether under the current rules or the proposed 2026 amendments, the application must be filed with the competent cantonal authority before the property transfer can be recorded in the land register. According to the Federal Office of Justice, the permit process operates as a condition precedent: no entry in the land register may be made without a valid authorisation or a confirmed exemption.

The standard permit workflow follows these steps:

1. Preliminary assessment: determine whether the buyer qualifies as a “person abroad” under the Act. Verify residency status, nationality, and, for entities, beneficial-ownership structure.
2. Cantonal identification: identify which canton has jurisdiction. This is determined by the location of the property, not the buyer’s domicile.
3. Application preparation: assemble the full dossier, including the signed purchase agreement (typically conditional on permit approval), buyer identification, proof of residency or permit status, intended use declaration, and financing confirmation.
4. Submission to cantonal authority: file the application with the relevant cantonal office (e.g., the Grundbuchamt or the cantonal land registry authority). Fees vary by canton.
5. Review period: the cantonal authority assesses whether the proposed acquisition meets the statutory grounds for approval. Standard processing takes four to twelve weeks, though complex structures may take longer.
6. Decision and appeal: the authority issues a written decision. If refused, the buyer may appeal to the cantonal administrative court and, ultimately, to the Federal Supreme Court.
7. Land-register entry: upon approval, the notary submits the deed for registration. The transfer becomes legally effective only upon entry in the land register.

Company and Trust-Specific Documentation

For companies and trusts, the documentation burden is materially heavier. Real estate lawyers in Switzerland advising corporate or trust purchasers should prepare:

• Full corporate-ownership chart down to ultimate beneficial owners (individuals)
• Certified copies of articles of incorporation, trust deeds or foundation charters
• Identification documents for all beneficial owners holding 25% or more
• Board resolutions authorising the acquisition
• Evidence of Swiss nexus (e.g., Swiss-based management, operational premises, or genuine business activity)
• Declaration of intended use and confirmation that the acquisition is not for purely passive investment (if the proposed commercial-property ban is enacted)

Common Rejection Reasons and Mitigation

Permit applications are most frequently rejected for the following reasons:

• Insufficient residency proof: the buyer cannot demonstrate genuine Swiss domicile or holds an expired or incorrect permit category.
• Incomplete beneficial-owner disclosures: multi-layered structures where the ultimate beneficial owner is unclear or documentation is missing.
• Purchase for pure investment: where the proposed amendments are enacted, residential acquisitions that lack a genuine personal-use nexus may be denied.
• Exceeded cantonal quotas: certain cantons impose annual limits on the number of permits issued to foreign buyers, particularly for holiday apartments in tourist regions.
• Inadequate financing evidence: the buyer cannot demonstrate lawful source of funds or has provided insufficient mortgage-commitment documentation.

Mitigation starts early: assemble the full ownership chart and residency documentation before signing even a conditional purchase agreement. Engaging a local notary and a specialist real estate lawyer at the pre-contract stage substantially reduces the risk of rejection.

Due Diligence Checklist for Foreign Buyers of Swiss Property

Beyond the Lex Koller permit, every cross-border acquisition requires thorough legal and transactional due diligence. The stakes are high: title defects, undisclosed encumbrances or zoning restrictions can render a purchase uneconomic or legally unenforceable. The following checklist provides a framework, and should be adapted by real estate lawyers in Switzerland to the specific property type and canton involved.

Cross-Border Tax and Withholding Checks

Foreign buyers must consider both Swiss and home-country tax consequences. Swiss cantons levy a real-estate transfer tax (Handänderungssteuer) that ranges from 0% to over 3% depending on the canton. Property-gains tax (Grundstückgewinnsteuer) applies on resale and is calculated at cantonal rates. Non-resident owners of Swiss rental property are subject to source taxation on rental income. Early engagement with a cross-border tax adviser is essential to avoid unexpected liabilities.

Regulatory Checks, Cantonal Differences

Switzerland’s federalist system means that cantons retain significant discretion in applying Lex Koller and in setting supplementary rules. Tourist cantons such as Valais, Graubünden and Bern apply specific quotas for foreign holiday-property acquisitions under the existing framework. Other cantons, including Zurich and Geneva, have historically applied stricter interpretive standards even where federal law permits flexibility. Advisers must check the specific cantonal regulations and recent administrative practice in the relevant jurisdiction before filing any permit application. For broader context on international real estate transactions, GLE’s cross-border guide provides a useful comparative framework.

Construction Contract Law 2026, Buyer Remedies and Drafting Checklist

Parallel to the Lex Koller proposals, the construction-contract reforms that took effect on 1 January 2026 have already changed the landscape for anyone acquiring new-build or renovation property in Switzerland. These reforms update the Swiss Code of Obligations provisions governing works contracts (Werkvertrag), with direct implications for developers, general contractors and buyers.

The key changes include:

• Extended defect-notification obligations: buyers must now provide detailed written notice of defects within a stricter timeframe from discovery. The reforms clarify that general complaints are insufficient, specific defect descriptions and documentary evidence are required.
• Revised limitation periods: the limitation period for claims relating to building defects has been adjusted, creating a clearer framework for latent-defect claims that emerge years after handover. Advisers should check whether projects governed by pre-2026 contracts enjoy transitional protection.
• Strengthened retention and escrow mechanisms: the reforms endorse the use of retention amounts and escrow accounts as standard tools for securing defect-remedy performance, replacing the informal arrangements previously common in Swiss construction practice.
• Improved step-in rights: buyers now have clearer contractual grounds to engage substitute contractors where the original contractor fails to remedy defects within the agreed timeframe, with costs recoverable from the defaulting party.

For additional background on construction-contract structures, see GLE’s guide on construction contracts, pros and cons and the construction law glossary.

Practical Sample Clause Guidance

Construction-contract and SPA drafting should now incorporate specific clauses addressing the 2026 reforms. Industry observers expect the following to become standard market practice:

• Defect-notice clause: specify the exact notice period (e.g., 14 business days from discovery), require written notice with photographic evidence, and name the recipient (contractor’s project manager, not a generic address).
• Remedy-window clause: define the contractor’s exclusive remedy period (e.g., 30 days) before the buyer may exercise step-in rights.
• Escrow/retention clause: require 5–10% of the contract price to be held in escrow or retained pending completion of a defect-free inspection, with clear release triggers.
• Step-in rights clause: expressly permit the buyer to appoint substitute contractors at the original contractor’s cost if the remedy window expires without cure.

For related guidance on defect-period exposures, see GLE’s article on developers’ liability for latent defects.

Practical Foreign Buyer Compliance Checklist, 10 Urgent Actions

The following compliance checklist is designed for buyers, sellers, advisers and real estate lawyers in Switzerland who need to act now, regardless of whether the proposed Lex Koller amendments are enacted in their current form:

1. Verify buyer residency and permit status, confirm the exact permit type (B, C, L, G) and its validity period. (Responsibility: buyer / immigration adviser. Timing: before any LOI.)
2. Map beneficial ownership, for corporate or trust buyers, prepare a complete ownership chart to ultimate individuals. (Responsibility: legal adviser. Timing: pre-contract.)
3. Classify the acquisition, determine whether the property is residential, commercial or mixed-use, and whether the intended purpose triggers Lex Koller. (Responsibility: real estate lawyer. Timing: pre-contract.)
4. Check cantonal quotas and local restrictions, contact the relevant cantonal authority to confirm available quota and any local supplementary rules. (Responsibility: local notary / legal adviser. Timing: pre-contract.)
5. Include a Lex Koller condition precedent in the SPA, ensure the purchase agreement is expressly conditional on obtaining the required permit. (Responsibility: drafting lawyer. Timing: at SPA negotiation.)
6. Prepare full permit documentation, assemble all identification, corporate and financing documents required by the cantonal authority. (Responsibility: legal adviser / buyer. Timing: at SPA signing.)
7. File the acquisition-permit application promptly, submit to the competent canton immediately after SPA execution. (Responsibility: notary / legal adviser. Timing: within days of signing.)
8. Review construction contracts for 2026 compliance, update all defect-notice, retention and step-in clauses to reflect the new requirements. (Responsibility: construction lawyer. Timing: ongoing for all new contracts.)
9. Assess cross-border tax exposure, obtain a tax opinion covering transfer tax, property-gains tax and home-country treaty implications. (Responsibility: tax adviser. Timing: before completion.)
10. Monitor the legislative process, track parliamentary deliberation of the Lex Koller amendments and prepare to adjust structuring advice. (Responsibility: legal adviser. Timing: ongoing through 2026–2027.)

How Advisers Should Draft Acquisition and Financing Documents in 2026

Every share purchase agreement, asset purchase agreement or property transfer deed involving a foreign buyer must now be drafted with the proposed Lex Koller amendments in mind. Even before the amendments take effect, prudent advisers are already incorporating protective provisions that will survive any tightening of the rules.

Key drafting elements include:

• Lex Koller condition precedent: the SPA should state that completion is conditional upon the buyer obtaining a valid acquisition permit (or a written confirmation that no permit is required) from the competent canton. The clause should specify a long-stop date and termination consequences if the permit is refused.
• Seller warranties on regulatory status: the seller should warrant that no undisclosed foreign-ownership restrictions, pre-emption rights or cantonal conditions attach to the property.
• Beneficial-ownership representations: the buyer should represent and warrant the accuracy of the disclosed ownership structure and undertake to notify the seller and canton of any changes.
• Escrow and deposit protections: deposits should be held in a notarial escrow account, with clear release triggers tied to permit approval and land-register entry.
• Lender protections: mortgage lenders financing foreign-buyer acquisitions should require covenant compliance with Lex Koller as a condition of drawdown, with cross-default provisions if the permit is subsequently revoked.

Sample SPA Clause, Lex Koller Condition Precedent

“This Agreement is conditional upon the Buyer obtaining a valid authorisation from [Canton] pursuant to the Federal Act on the Acquisition of Real Estate by Persons Abroad (SR 211.412.41) within [90] days of the date hereof. If such authorisation is not obtained or is refused by the Long-Stop Date, either party may terminate this Agreement by written notice, and the Deposit shall be returned to the Buyer in full.”

Next Steps, Dispute Risk and Enforcement

Where a permit application is refused, the buyer faces a clear decision: appeal or withdraw. Appeals follow the cantonal administrative-court route and may ultimately reach the Federal Supreme Court. Early indications suggest that courts will apply a strict standard to the new disclosure requirements, making thorough documentation at the application stage the single most important protective measure.

Additional enforcement risks to manage include:

• Void transactions: an acquisition completed without a valid permit (where one was required) is void ab initio. The land-register entry may be cancelled, and both parties face administrative sanctions.
• Criminal and administrative fines: deliberate circumvention of Lex Koller can result in criminal penalties, including fines and, in extreme cases, imprisonment.
• SPA breach claims: if a seller fails to disclose a known Lex Koller restriction, the buyer may claim damages for breach of warranty or misrepresentation.
• Deposit recovery: ensure that escrow clauses provide for automatic refund of deposits where a permit is refused through no fault of the buyer.

Conclusion

The Federal Council’s 15 April 2026 proposals mark the most significant potential change to Swiss foreign-ownership rules in nearly three decades. While parliamentary debate and a potential referendum still lie ahead, the direction of travel is clear: stricter controls, broader scope and heavier documentation burdens for every category of foreign buyer. Combined with the construction-contract reforms already in force since 1 January 2026, the compliance landscape for real estate lawyers in Switzerland, and the foreign clients they serve, has fundamentally shifted.

Buyers, sellers and advisers should not wait for the final legislation. Proactive steps taken now, mapping beneficial ownership, securing residency documentation, updating SPA drafting and reviewing construction-contract clauses, will determine whether transactions proceed smoothly or stall at the permit stage. For jurisdiction-specific guidance tailored to individual transactions, GLE’s Switzerland lawyer directory connects clients with experienced real estate lawyers across Swiss cantons.

This article was last reviewed on 6 May 2026. It reflects the Lex Koller amendments as proposed by the Federal Council on 15 April 2026. The proposals remain subject to parliamentary deliberation, potential amendment and referendum. Readers should seek independent legal advice before relying on this guide for specific transactions.

Sources

1. Federal Office of Justice, Acquisition of Property by Foreign Non-Residents
2. SWI swissinfo.ch, Swiss Government to Tighten Foreign Property Ownership
3. Deloitte Switzerland, Switzerland Plans Tightening Restrictions on Property Acquisition
4. Eversheds Sutherland, Legal Compass Switzerland: Real Estate (May 2026)
5. EY, How to Navigate Switzerland’s Real Estate Laws as a Foreign Buyer
6. CMS, Real Estate Law in Switzerland
7. Le News, Swiss Government Wants to Make It Harder for Foreigners to Buy Homes
8. Taxolution, Can Foreigners Buy Property in Switzerland?