Rules for Foreigners Buying Property in Switzerland: Investment Opportunities

Switzerland has long been a sought-after destination for real estate investment, thanks to its economic stability and high quality of life. However, property purchases by foreigners are subject to specific regulations that vary depending on residency status, the type of property, and its intended use.

If you’re a foreign national interested in buying property in Switzerland, this guide will help you understand the main rules, limitations, and investment opportunities.

Who Can Buy Property in Switzerland?
The regulations governing property purchases by foreigners in Switzerland are defined by the Federal Act on the Acquisition of Real Estate by Persons Abroad (LFAIE), commonly known as the Lex Koller.

According to this law, foreign buyers fall into two main categories:

Residents in Switzerland with a B or C Permit

• If you hold a B residence permit (temporary residence), you can purchase a primary residence, with some limitations on secondary homes.
• If you have a C residence permit (permanent residence), you can buy property without restrictions, just like Swiss citizens.

Non-Residents in Switzerland

• If you don’t reside in Switzerland, property purchases are subject to restrictions and require cantonal authorization. However, there are exceptions—for example, the purchase of holiday homes or properties in tourist areas.

Types of Property Foreigners Can Purchase

Primary Residence

  • Available only to residents with a B or C permit

  • The property must be used exclusively by the owner as a personal residence

  • It cannot be rented to third parties

Holiday Homes and Properties in Tourist Areas

  • Available to non-residents, but only in designated areas

  • The Federal Council sets an annual quota for permits issued for this type of purchase

  • These properties can be rented short-term but not used as a primary residence

Commercial Real Estate

  • Foreigners may purchase offices, shops, hotels, and other commercial properties without restrictions

  • Ideal for those looking to start a business or invest in commercial operations in Switzerland

Restrictions and Rules for Foreign Property Purchases

If you’re a foreign investor planning to buy a holiday home or residential property, here are some key rules to be aware of:

Cantonal and Municipal Limits

• Each canton has its own regulations, and some impose stricter limitations on foreign ownership

• For example, tourist hotspots like Zermatt and St. Moritz have particularly tight restrictions

Maximum Property Size

• In general, a foreign national cannot purchase more than 1,000 square meters of land without special authorization

• Some cantons apply even stricter size limits

No Speculative Buying

• Foreigners are not allowed to purchase property for speculative purposes

• Reselling immediately for quick profit is not permitted

Mandatory Cantonal Permit

• Every purchase requires an acquisition permit issued by the canton where the property is located

• The number of permits granted each year is limited and based on demand

Real Estate Investment Opportunities for Foreigners in Switzerland

Despite the restrictions, Switzerland offers excellent investment opportunities for foreign nationals, especially in the following categories:

Luxury Properties on Lake Lugano and Lake Geneva

  • Some cantons, like Ticino, allow foreigners to buy exclusive lakeside villas and apartments

  • Perfect for those seeking a prestigious second home in an elegant setting

Chalets and Mountain Residences

  • Destinations like Verbier, Davos, and Engelberg offer investment opportunities in tourist-oriented chalets and apartments

  • These properties can be rented short-term, generating attractive returns

Commercial and Hotel Investments

  • Foreign investors can purchase commercial real estate without restrictions

  • Cities like Zurich, Lugano, and Geneva are top choices for commercial property investments

How to Buy Property in Switzerland as a Foreigner

If you’re a foreign citizen interested in purchasing real estate in Switzerland, here are the key steps to follow:

Check Eligibility

  • Make sure you fall under the categories permitted to buy property

Property Search

  • Find your ideal property with the help of an experienced real estate agency like Ebuyhouse

Obtain Cantonal Authorization

  • Submit a request for purchase authorization to the relevant canton

Sign the Sales Agreement

  • Once authorization is granted, the notarial sales contract is signed

Register the Property

  • The ownership transfer is finalized with the official land registry

Purchasing property in Switzerland as a foreigner is governed by clear rules, but offers excellent opportunities for those looking to invest in a stable and rewarding market.

If you’re considering buying property in Switzerland and would like expert guidance, contact Ebuyhouse. We’ll help you find the perfect solution for your real estate needs.

Contact us today to discover the best opportunities available.