Switzerland's Lex Koller in 2026: The 1,500-Apartment Cap, the April 2026 Tightening Proposal, and Where Foreigners Can Actually Still Buy

Published on: May 8, 2026

Quick answer: Lex Koller classifies buyers rather than properties, and for non-resident foreigners it restricts purchases to holiday homes in designated tourist communes within 17 quota cantons, capped at roughly 1,500 units per year nationally, with nine cantons (including Zurich, Geneva, Basel, and Zug) getting zero quota, so every major Swiss city is closed to non-resident buyers. Permitted holiday homes are capped at 200 m² of living area on 1,000 m² of land, require 35–50% cash down, and carry annual costs (Eigenmietwert, property tax, wealth tax) of roughly 1.5–2.5% of value. The Federal Council's April 14, 2026 proposal, in consultation until July 15, would tighten further by requiring authorization for primary residences, forcing a sale within two years of departure, counting foreigner-to-foreigner sales against quota, and banning foreign acquisition of Swiss residential real estate funds. Switzerland remains a wealth-preservation gate for specific buyer profiles, not a retail investment market.

Switzerland is the most legally restrictive property market in Western Europe for foreigners, and on April 14, 2026, the Swiss Federal Council announced plans to make it considerably more restrictive.

The proposed tightening, currently in public consultation until July 15, 2026, would require non-EU/EFTA nationals to obtain explicit authorization for primary residence purchases (not just holiday homes), force foreign owners to sell within two years of leaving Switzerland, reduce cantonal holiday home quotas, count sales between foreigners against cantonal quotas (currently they don't), and ban foreigners outright from buying shares in Swiss residential real estate funds and listed REITs.

If enacted, the changes are unlikely to come into force before 2027 or 2028. But the direction is unmistakable: Switzerland is closing what was already the narrowest legal channel for foreign property ownership in Europe.

This makes 2026 a structurally important year. The current Lex Koller framework, restrictive but workable, is being preserved temporarily. Buyers acting in 2026 still have access to mechanisms that may not exist in 2028. And the buyers who don't act will be looking at a fundamentally different market.

This is the 2026 framework: how Lex Koller actually works today, where foreigners can still buy, what changes in the proposed reform, and which buyer profiles still have a credible path.

Lex Koller: The Law and What It Actually Restricts

The Federal Act on the Acquisition of Immovable Property by Persons Abroad (Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland), commonly called Lex Koller, has restricted foreign property ownership in Switzerland since 1983. The original concern was speculative foreign capital driving Swiss housing out of reach for Swiss residents, particularly in Alpine resort communities.

The law operates by classifying buyers, not properties. Switzerland divides property purchasers into three categories:

Category 1: Persons not subject to Lex Koller (no authorization required)

• Swiss citizens
• EU/EFTA nationals with a valid B (residence) or C (settlement) permit who use the property as primary residence
• Foreign nationals with a Swiss C permit (settlement permit, typically after 5–10 years of residence)
• Cross-border G permit holders buying secondary residence in their canton of employment (workweek-only use)

Category 2: Persons abroad subject to Lex Koller (authorization required, restricted)

• Non-resident foreigners (the largest category, anyone not living in Switzerland)
• Non-EU/EFTA nationals living in Switzerland on a B permit (typically Americans, British post-Brexit, Asians)
• L permit (short-stay) holders
• Foreign-controlled companies, funds, and partnerships

Category 3: Foreign-controlled Swiss companies

• Swiss-incorporated entities with majority foreign ownership or foreign decision-making control are treated as Category 2 buyers under the "look-through" provisions.

For Category 1 buyers, Switzerland is fully open. An Italian citizen with a Swiss B permit can buy a primary residence in Geneva, Zug, or Zurich the same day they sign the offer. A British citizen with a C permit (typically requiring 10 years of continuous Swiss residence) has the same rights as a Swiss citizen for residential purchases.

For Category 2 buyers, the buyer profile most international "Switzerland property" articles target, the picture is fundamentally different.

What Persons Abroad Can and Cannot Buy

Non-resident foreigners and short-stay permit holders cannot freely buy property anywhere in Switzerland. They are restricted to a specific subset of properties in specific cantons, subject to permit and quota.

What is permitted (with cantonal authorization):

• Holiday homes in designated tourist communes within the 17 cantons that hold annual quota
• Primary residences for the buyer's own use, only if the buyer is moving to Switzerland and obtaining a residence permit (the property purchase typically follows or accompanies the permit application, not precedes it)
• Commercial property used by the buyer's own business operations (offices, manufacturing, hotel buildings as operating assets, restaurants, retail premises)

What is generally not permitted:

• Investment residential property for letting
• Property in non-tourist cantons (Zurich, Geneva, Basel, Bern, and several others, see quota table below)
• Land for residential development by foreign-controlled entities
• Acquisition through Swiss SPVs structured to disguise foreign control (Article 6 explicitly disregards artificial structures)
• Purely investment commercial property held for capital appreciation rather than business use

Penalties for Lex Koller violations are severe. Transactions can be declared void retroactively. Property can be ordered sold at the violator's risk and loss. Criminal sanctions apply to deliberate circumvention. The Federal Office of Justice publishes guidance and audits cantonal approvals.

The 1,500-Unit Cap: Cantonal Quotas in Detail

Switzerland's federal cap on holiday-home approvals to non-residents is fixed at approximately 1,500 units per year nationwide. The schedule was last set in December 2007 (Verordnung über den Erwerb von Grundstücken durch Personen im Ausland, BewV, Annex 1) and has not been updated since.

The 17 cantons with quota share the national total roughly as follows:

The 9 cantons that get zero quota and cannot sell holiday homes to non-residents at all:

• Zurich (financial capital, the largest economically but excluded)
• Geneva (international hub, also excluded)
• Basel-Stadt
• Basel-Landschaft
• Aargau
• Solothurn
• Thurgau
• Zug (despite its tax-haven status, residential off-limits to non-residents)
• Schaffhausen (and Appenzell Innerrhoden, Appenzell Ausserrhoden, Glarus, Jura, Nidwalden, Obwalden, Uri have very small quotas of around 20 units each)

In practical terms, this means non-resident foreigners cannot buy residential property in any major Swiss city. Zurich, Geneva, Basel, Bern, Lausanne, and Zug, the entire Swiss urban property market, is closed to non-resident foreign buyers. The only Swiss property a non-resident can purchase is a holiday home in an alpine or lakeside tourist commune within a quota canton, and only within that canton's annual allocation.

In recent years, most cantons have not exceeded their quotas, demand has cooled relative to the 2007 baseline. But popular tourist communes can still see quota exhaustion in peak years, and approval is at cantonal discretion even within quota.

Size and Use Restrictions on Holiday Homes

Even within quota, holiday homes purchased by non-residents are subject to strict size and use restrictions:

• Maximum land area: 1,000 m² per property (some cantons go up to 3,000 m² for justified cases)
• Maximum net living area: 200 m² (heated rooms, including saunas, swimming pools, hobby rooms; excluding balconies, staircases, cellars, attics)
• Use restriction: The property must be used by the buyer for holiday purposes. Year-round letting to third parties requires additional permits (often denied), and the property cannot be the buyer's principal residence (which would disqualify the buyer as a "person abroad").
• Resale restriction: Resale of the holiday home requires the seller (or in some cantonal interpretations, the buyer) to wait approximately 5 years after acquisition before resale to another foreigner is permitted. Transfers between Lex Koller-exempt persons are generally unrestricted.

Combined with Lex Weber, the constitutional cap of 20% second homes per Swiss commune (passed by referendum in 2012), the available stock of legally purchasable holiday homes for foreigners is structurally limited and shrinking.

For a foreign buyer in 2026, the practical universe of purchasable property is: a holiday apartment of less than 200 m² living area, on less than 1,000 m² of land, in one of approximately 100 designated tourist communes spread across 17 cantons, within that canton's annual quota, subject to Lex Weber commune-level second-home limits, with resale restrictions, and used by the owner for holiday purposes only.

This is a very narrow universe. It is also one of the most beautiful narrow universes in the world.

The Financing Reality: 35–50% Cash Down

Swiss mortgage lending to non-residents is conservative even by European private-banking standards. The typical 2026 framework for non-resident foreign buyers:

• Loan-to-value cap: 50–65% for most lenders, with private banking relationships occasionally extending to 65–70% on prime properties
• Cash down payment: 35–50% of purchase price expected from non-residents (versus 20–25% for Swiss residents under federal mortgage rules)
• Amortization rules: Mandatory amortization to 65% LTV within 15 years
• Interest rates (Q2 2026): 10-year fixed mortgages typically 1.5–2.2% for prime borrowers
• Affordability rule: Imputed costs (mortgage interest at 5%, plus 1% maintenance, plus amortization) cannot exceed 33% of gross income
• Closing costs: 2–5% of purchase price (notary fees, land registry, transfer tax, varies by canton)

A non-resident buyer of a CHF 3 million chalet in Verbier should plan for:

• CHF 1.05–1.5 million cash down payment (35–50%)
• CHF 60,000–150,000 closing costs
• CHF 1.5–1.95 million mortgage at ~1.8% over 25 years (≈ CHF 8,500/month)

Total cash required at closing: CHF 1.1–1.65 million. Plus annual carrying costs of property tax, Eigenmietwert taxation, wealth tax, insurance, and maintenance.

The Annual Cost: Eigenmietwert, Property Tax, and Wealth Tax

Switzerland's annual property holding costs are unusual by international standards, particularly for foreign owners:

Eigenmietwert (imputed rental value). Even owner-occupied property is taxed as if it generated rental income. The federal and cantonal authorities calculate a notional rental value (typically 60–70% of theoretical market rent) and add it to the owner's taxable income. For a CHF 3M chalet, Eigenmietwert can add CHF 60,000–80,000 to taxable income annually. Note: a federal reform abolishing Eigenmietwert for primary residences was approved in principle in 2024 but full implementation remains pending; foreign-owned holiday homes are unlikely to benefit.

Property tax (Liegenschaftssteuer). Cantonal, varies widely. Range: 0.05–0.3% of cadastral value annually. Vaud and Geneva are mid-range; some smaller cantons have no property tax at all.

Wealth tax (Vermögenssteuer). Unique to Switzerland. Annual tax on net wealth (assets minus liabilities), levied by canton and commune. Property is included at its tax value (typically 60–80% of market value). Rates range from 0.05% in low-tax cantons (Nidwalden, Obwalden, Schwyz) to over 1% in high-tax cantons (Geneva, Vaud, Basel-Stadt). For a CHF 3M property in Vaud held by a non-resident, wealth tax on the Swiss situs asset alone can run CHF 8,000–25,000 annually depending on the buyer's overall net worth allocation.

Maintenance and condominium fees. Alpine ski-resort condominiums typically charge CHF 25–50/m²/year in maintenance. A 150 m² chalet apartment can incur CHF 4,500–9,000 annually.

Combined annual carrying cost on a CHF 3M Swiss holiday home for a non-resident foreign owner: roughly 1.5–2.5% of property value per year before mortgage interest. Higher than France, Spain, Italy, or Portugal, but the trade is jurisdictional stability, currency hardness, and asset preservation rather than yield.

The April 2026 Tightening Proposal: What Changes If Enacted

The Federal Council's April 14, 2026 proposal contains five major tightening measures, currently under public consultation through July 15, 2026:

1. Permit requirement for primary residences by non-EU/EFTA nationals. Currently, a non-EU national with a B permit can purchase a primary residence without Lex Koller approval. The proposal would introduce a new authorization requirement for these purchases. The threshold of "primary residence" would be defined and enforced more strictly.
2. Two-year forced-sale rule on departure. If a non-EU/EFTA primary-residence buyer subsequently leaves Switzerland (loses or relinquishes their Swiss residence permit), they would be required to sell the property within two years. This eliminates the current ability to retain Swiss residential property as a long-term investment after relocating away.
3. Reduced cantonal holiday-home quotas. The 1,500-unit national cap would be reduced (specific reductions to be negotiated during the consultation), tightening already-narrow availability in popular cantons.
4. Sales between foreigners count against quota. Currently, when one foreigner sells a Swiss holiday home to another foreigner, the transaction does not consume cantonal quota. Under the proposal, every foreigner-to-foreigner transaction would count, reducing the effective inventory available to new foreign buyers and reducing secondary-market liquidity for existing foreign-owned properties.
5. Ban on foreign acquisition of listed Swiss residential real estate funds and SICAVs. Currently, foreigners can gain residential Swiss real estate exposure through publicly traded shares in Swiss residential REITs and funds (UBS Sima, Swiss Prime Site, PSP Swiss Property residential portfolios). The proposal would prohibit foreigners from acquiring new shares, closing what has been the only liquid foreign-investor channel into Swiss residential real estate.

The proposal links to the broader "No to ten million" referendum on June 14, 2026, which proposes a constitutional cap on Swiss population. Even if the referendum is rejected, the Federal Council intends to introduce the Lex Koller tightening as accompanying measures.

Timeline if approved:

• July 15, 2026: Consultation closes
• Late 2026: Federal Council reviews submissions, prepares legislative bill
• 2027: Parliamentary debate and possible referendum
• 2027–2028 earliest: New rules in force

For 2026 buyers, the practical implication is asymmetric: the existing rules continue to apply, but the optionality (ability to sell to another foreigner without quota consumption, ability to retain property after leaving Switzerland) is being explicitly removed for future transactions. Buyers acting in 2026 lock in the current rules for their own purchase but face uncertain conditions for resale.

Where Swiss Property Still Earns Its Place

After Lex Koller, the cantonal quota system, the 200 m² size cap, the 35–50% cash-down requirement, and the impending tightening, Switzerland still attracts and retains foreign capital for specific reasons:

Currency preservation. The Swiss franc has been the world's most stable major currency for the past 50 years. For investors with depreciation-prone home currencies (Argentine peso, Turkish lira, Russian ruble, increasingly the British pound), Swiss real estate offers a CHF-denominated hard asset class.

Legal certainty. Swiss courts are predictable, contract enforcement is reliable, and property registration in the Grundbuch is functionally instant and unimpeachable.

Trophy alpine inventory. Verbier, Crans-Montana, Zermatt, St. Moritz, Klosters, Gstaad, the global supply of trophy ski-resort property is structurally constrained, and Switzerland holds a disproportionate share of it. For ultra-high-net-worth buyers, scarcity premium is the entire investment thesis.

Tax arbitrage with Lex Weber and lump-sum taxation. Cantons offering forfait fiscal (lump-sum taxation), Valais, Vaud, Ticino, Graubünden, and others, combined with Swiss residency through cantonal lump-sum agreements remain compelling for ultra-high-net-worth non-EU nationals. Property purchase often follows residency, not the other way around.

Banking and family office access. Swiss residency through property-supported permit applications (when paired with lump-sum taxation or other qualifying paths) unlocks Swiss private banking, family office services, and the country's tax treaty network.

For these buyers, measured in single thousands per year globally, Switzerland's property restrictions are less obstacles than gates, separating committed wealth-preservation buyers from speculative ones. The 2026 tightening, if enacted, will narrow the gate further but is unlikely to close it entirely.

For everyone else, yield investors, second-home buyers without HNW context, families seeking primary residences without a Swiss employment or business anchor, Switzerland in 2026 is effectively closed, and the proposed reforms would make it more so.

The Verdict

Lex Koller is not, and was never intended to be, a workable framework for retail international property investment. It is a structural filter that admits very specific buyer profiles, Swiss-resident permit holders, ultra-high-net-worth families building Alpine asset bases, business operators acquiring commercial property for active use, and excludes everyone else.

The April 2026 tightening proposal narrows the filter further. Investment-only commercial property would be prohibited. Listed residential funds would close to foreigners. Primary residence purchases by non-EU nationals would require explicit authorization. Departure would trigger forced sale.

For the right buyer in the right canton with the right structuring, Switzerland still works in 2026. For anyone else, it is one of several Western European jurisdictions worth admiring rather than pursuing.

The structural appeal, currency, courts, scarcity, secrecy, has not changed in 40 years. What has changed is that the Swiss government has decided, through the April 2026 reforms, that even these narrow channels are now politically untenable. The 2026 buyer should assume the 2028 buyer will face fewer options, not more.

Frequently asked questions

Can a non-resident foreigner buy property in a Swiss city?
No. Non-resident foreigners cannot buy residential property in any major Swiss city, Zurich, Geneva, Basel, Bern, Lausanne, and Zug are all in cantons with zero quota. The only property a non-resident can purchase is a holiday home in a designated tourist commune within one of the 17 quota cantons.

How many holiday homes can foreigners buy each year?
Switzerland's federal cap on holiday-home approvals to non-residents is fixed at roughly 1,500 units per year nationwide, shared among the 17 quota cantons. Valais (330) and Graubünden (290) hold the largest allocations, and approval is at cantonal discretion even within quota.

What size and use limits apply to a foreign-owned holiday home?
Holiday homes are capped at about 200 m² of net living area on up to 1,000 m² of land, must be used by the buyer for holiday purposes (not as a principal residence), generally cannot be let year-round, and face a roughly five-year wait before resale to another foreigner. The Lex Weber 20% second-home cap further limits available stock.

What would the April 2026 proposal change?
If enacted, it would require authorization for primary-residence purchases by non-EU/EFTA nationals, force a sale within two years of leaving Switzerland, reduce cantonal quotas, count foreigner-to-foreigner sales against quota, and ban foreigners from buying shares in Swiss residential real estate funds and listed REITs. The changes are unlikely to come into force before 2027 or 2028.

JanusHermes provides cross-border real estate intelligence across Switzerland and 50+ countries, including the cantonal quota system, Lex Koller eligibility frameworks, lump-sum-taxation context, and country-by-country tax frameworks for international investors. Explore the Country Intelligence tool for Switzerland or browse current listings.

This article is for informational purposes only and does not constitute legal, tax, or investment advice. Lex Koller, cantonal quotas, BewV Annex 1 allocations, and the proposed April 2026 amendments are subject to change. The tightening proposal under consultation through July 15, 2026 may be modified, delayed, or withdrawn during the legislative process. Buyers should obtain current legal advice from a qualified Swiss notary and from cantonal authorities before any acquisition.

A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.