Can Foreigners Buy Property in Switzerland? Lex Koller, Permits, and the Practical Reality in 2026

Switzerland’s real estate market is widely coveted — stable, high-quality, legally secure, and denominated in one of the world’s most resilient currencies. Yet for foreign nationals, it is also governed by one of Europe’s most structured systems of acquisition restrictions. Understanding Lex Koller — the federal law at the centre of these restrictions — is non-negotiable for any non-Swiss buyer considering Swiss property.

This guide covers the complete picture: who can buy freely, who faces restrictions, the critical commercial property exception that many buyers overlook, the Crypto Valley incorporation strategy, and the step-by-step transaction process for eligible buyers.

The Core Legal Framework: Lex Koller in Plain Terms

Lex Koller is the informal name for the Federal Act on Acquisition of Real Estate by Persons Abroad (Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland — BewG). It is Switzerland’s federal law restricting residential property purchases by foreign nationals who do not qualify under defined exemptions.

The law does not restrict all foreign buyers. It creates a tiered system based on nationality and Swiss residence permit status. Understanding which tier you occupy determines your property rights.

The law also contains a major exception that is frequently underappreciated: commercial real estate is entirely outside Lex Koller’s scope. More on this below.

WHO CAN BUY: The Unrestricted Categories

Swiss Citizens

Swiss citizens are entirely unaffected by Lex Koller, regardless of where they reside. A Swiss national living in Singapore or New York can purchase residential property in Zug, Zurich, or anywhere in Switzerland without restriction or authorisation requirement.

EU and EFTA Nationals with Swiss Residence (B or C Permit)

This is the most important category for the international professional community in Switzerland.

EU and EFTA nationals who are legally resident in Switzerland — holding either a temporary residence permit (B permit, Aufenthaltsbewilligung) or a permanent residence permit (C permit, Niederlassungsbewilligung) — can purchase residential property freely, on the same terms as Swiss citizens. This reflects Switzerland’s bilateral agreements with the European Union on freedom of movement.

The key conditions are:

• You must hold a valid Swiss residence permit (B or C permit)
• You must use the property as your primary residence (not as a pure investment property or second home)
• You must actually be resident in Switzerland — a B permit alone held as a formality does not suffice if you are not genuinely resident

A German, French, Italian, Dutch, or other EU national who has relocated to Zug for work and holds a B permit can walk into any Swiss real estate agent, make an offer, and complete a purchase transaction without any additional procedure, authorisation, or permit. This is practically straightforward and extremely common.

EFTA nations covered include Norway, Iceland, and Liechtenstein. Crucially, the UK is no longer an EFTA member following Brexit in 2020. UK nationals are now treated as non-EU/EFTA nationals for Lex Koller purposes — a significant change that affects many Crypto Valley participants who arrived pre-Brexit assuming equivalence.

Non-EU/EFTA Nationals Holding a C Permit (Permanent Residence)

Any foreign national — from the United States, United Kingdom, Canada, India, China, Brazil, or anywhere else outside EU/EFTA — who holds a Swiss permanent residence permit (C permit, Niederlassungsbewilligung) can purchase residential property freely, with the same rights as Swiss citizens.

The C permit is Switzerland’s permanent residence authorisation. It is not granted automatically — it requires meeting residence duration and integration criteria:

• Generally 5 years of uninterrupted Swiss residence for nationals of certain countries with bilateral agreements
• 10 years of uninterrupted Swiss residence for nationals of most other countries without specific bilateral provisions
• Language proficiency, integration criteria, and lack of criminal record are standard requirements

For Crypto Valley entrepreneurs who arrived 2016-2018: if non-EU/EFTA, many will be approaching or have already reached C permit eligibility in 2024-2026. This represents a significant deferred buyer cohort entering the market.

Companies with Swiss Majority Ownership

A Swiss company (AG or GmbH) that is majority-owned by Swiss citizens or persons otherwise exempt from Lex Koller can purchase residential property. Lex Koller’s provisions on indirect acquisition mean that the ownership structure of the purchasing company is examined — a company structure does not automatically bypass the restriction.

However, the corporate pathway is significant for commercial property, as described below.

WHO CANNOT BUY Without Authorisation

Non-EU/EFTA Nationals Without a C Permit

This is the category most relevantly affected. US, UK (post-Brexit), Canadian, Australian, Indian, Chinese, and all other non-EU/EFTA nationals who do not yet hold a C permit — including those with a Swiss B permit — cannot purchase residential property without cantonal authorisation.

In practice, cantonal authorisation for standard residential purchases is not granted. The statutory grounds for authorisation are narrow: they relate primarily to primary residence for persons who will become resident, and in practice the authorisation route is not a viable pathway for most property-seeking foreign buyers. Attempting to navigate the authorisation process for a standard Zug city apartment purchase will, in the overwhelming majority of cases, result in refusal.

This restriction affects a large proportion of Crypto Valley’s international founding community. A US-citizen blockchain entrepreneur with a B permit who arrived in Zug in 2022 cannot purchase a residential apartment in Zug until achieving C permit eligibility — at the earliest in 2027 or later, depending on nationality and compliance with integration requirements.

Foreign Companies and Trusts

Foreign companies — incorporated outside Switzerland — cannot purchase Swiss residential property. Lex Koller also applies to indirect acquisition structures: purchasing shares in a Swiss company whose primary asset is Swiss residential real estate triggers Lex Koller analysis just as a direct residential purchase would.

Cayman Islands structures, BVI vehicles, Liechtenstein Anstalten, and similar offshore entities cannot hold Swiss residential real estate without falling within Lex Koller’s scope.

The Commercial Property Exception: The Critical Loophole

The most consequential and widely underappreciated aspect of Lex Koller is its explicit carve-out for commercial real estate.

Lex Koller does not apply to commercial property — offices, warehouses, industrial buildings, retail premises, and any property used for non-residential commercial purposes.

This is not a grey area or a creative interpretation. It is the explicit legislative scope of the law, which is expressly limited to residential property. The rationale is that Lex Koller’s purpose is protecting the housing market from foreign domination — commercial property is outside this concern entirely.

The practical implications for Canton of Zug are substantial:

A US citizen arriving in Zug with a B permit who cannot purchase a residential apartment can walk into any commercial property transaction and buy an office, a workshop, a retail space, or a mixed-use commercial building with no Lex Koller restriction whatsoever. Price ranges for commercial property in Zug are discussed in detail in our Zug commercial property market guide.

For crypto entrepreneurs whose foundations or companies need office space, purchase of commercial premises is entirely unrestricted regardless of the nationality or permit status of the company’s founders. The Ethereum Foundation, the Web3 Foundation, and dozens of other Zug-domiciled blockchain entities own or have owned commercial real estate in Zug without any Lex Koller issue.

The Crypto Valley Workaround: Swiss AG First, Then Commercial Property

For non-EU/EFTA nationals who want Swiss property exposure before C permit eligibility, the practical solution that operates entirely within the law is:

1. Incorporate a Swiss AG (Aktiengesellschaft)

A Swiss AG requires a minimum share capital of CHF 100,000, at least one director resident in Switzerland, and registration in the Swiss commercial register. Incorporation through a Swiss corporate service provider or law firm typically takes 2-4 weeks and costs CHF 2,000-5,000 in professional fees plus CHF 100,000 share capital.

2. The AG Purchases Commercial Property

The Swiss AG — regardless of whether its shareholder is a non-EU/EFTA national without a C permit — can purchase commercial real estate anywhere in Switzerland without Lex Koller restriction. The AG appears in the Grundbuch as the property owner. The foreign individual shareholder holds the AG shares.

Why this works: Lex Koller’s indirect acquisition provisions are targeted at structures designed to hold residential property through a Swiss corporate vehicle. Commercial property purchases by Swiss companies — even foreign-owned Swiss companies — are outside the law’s scope. SECO guidance and cantonal practice confirm this.

Important caveats: This structure is commercially rational and legally sound for genuine commercial use. It should not be used to circumvent residential restrictions — for example, purchasing a building and then using part of it as a private residence without proper commercial use of the remaining floors could attract regulatory scrutiny. The structure is appropriate for genuine commercial real estate ownership.

The AG also attracts Zug corporate tax — though for a property-holding entity, this is primarily relevant to rental income if the property is let.

The Lex Koller Authorisation Process (For Those Who Pursue It)

Where an authorisation is theoretically available — primarily for vacation home purchases in cantons with available quotas — the process runs as follows:

Cantonal application: The application is made to the cantonal authority responsible for Lex Koller oversight — in Zug, this is the Direktionsbüro des Baudepartements (cantonal construction department). The applicant must demonstrate that a statutory ground for authorisation applies.

Timeline: 30-60 days for cantonal review, with the possibility of escalation to the State Secretariat for Economic Affairs (SECO) for cases with national significance or complexity.

Quota system for vacation homes: Canton of Zug receives an annual federal allocation of authorisations for foreign vacation home purchases. As Zug is not a traditional Alpine ski resort canton, its quota is modest — though vacation home purchases near Lake Zug can in principle qualify where a genuine vacation use case is demonstrated.

Practical reality: For the vast majority of Canton of Zug’s international community, the authorisation route is not a practical pathway for standard residential purchases. EU/EFTA B permit holders simply buy freely; non-EU/EFTA nationals without C permits generally wait for C permit eligibility or focus on commercial property in the interim.

EU Nationals’ Practical Position: B Permit as the Gateway

For EU and EFTA nationals, the practical property buying position is often better than people assume at first encounter with Swiss property law.

A B permit holder from any EU member state can purchase their primary residence in Switzerland immediately, subject to the genuine primary residence condition. The process is identical to that for a Swiss citizen — no special procedure, no waiting period, no authorisation requirement.

The B permit primary residence condition means the property must be genuinely used as the buyer’s principal home. It cannot be purchased as an investment let or a vacation property. If the EU national leaves Switzerland and the property ceases to be their primary residence, they may need to sell — though this is rarely enforced in practice for established long-term residents.

For EU nationals considering Swiss property investment (rather than owner-occupation), the position is more restrictive: without the primary residence condition being met, the purchase falls into the general Lex Koller analysis. Investment residential property by non-resident EU nationals requires authorisation.

Step-by-Step Buying Process for Eligible Foreigners

For buyers who are eligible — whether EU/EFTA B or C permit holders, C permit holders of any nationality, or buyers of commercial property — the transaction process follows these steps:

Step 1: Property identification and offer

Once a property is identified, a binding offer (or preliminary agreement, Vorvertrag) is typically signed. Swiss real estate transactions commonly use a notarially certified preliminary contract. Ensure you have banking capacity to demonstrate funds — Swiss banks and notaries will conduct due diligence on the origin of purchase funds under AMLA requirements.

Step 2: Notarial deed (Öffentliche Beurkundung)

The sale and purchase agreement in Switzerland must be executed as a formal notarial deed by a cantonal notary. The notary in the canton where the property is located prepares and authenticates the document. The notary also conducts Lex Koller compliance checks and confirms the buyer’s eligibility.

Notary fees are typically 0.5-1.0% of the transaction value in both Zug and Zurich cantons.

Step 3: Grundbuch registration

Following notarial execution, the transfer is registered in the cantonal land registry (Grundbuch). Legal title passes at the moment of registration, not at contract signing. The Grundbuchamt processes the registration based on the notarial deed. See our Swiss land registry guide for a full explanation of how Grundbuch title works.

Step 4: Transfer tax (Handänderungssteuer)

Switzerland does not have a federal property transfer tax, but all cantons levy a cantonal transfer tax. Rates vary:

• Canton of Zug: 1.5% of transaction value
• Canton of Zurich: approximately 1.5% (with some municipal variation)
• Geneva: 3.0%
• Valais: 2.0-3.0%

Transfer tax is typically shared between buyer and seller by negotiation, though market practice varies. In Zug, the buyer commonly bears the full transfer tax.

Step 5: Mortgage registration (if applicable)

If the purchase is financed with a Swiss bank mortgage, the mortgage security (Schuldbrief) is registered in the Grundbuch simultaneously with the ownership transfer. For guidance on Swiss mortgage financing, including how banks assess foreign buyers, see our Swiss mortgage guide.

Total Transaction Costs for Eligible Foreign Buyers

Planning a budget for a Swiss property purchase should include the following transaction costs:

For mortgage-financed purchases, add bank arrangement fees (typically 0.5-1% of loan value) and the cost of a property valuation (CHF 2,000-5,000 for an independent expert assessment).

The 2026 Reform Landscape

Lex Koller reform has been a periodic topic in Swiss parliamentary debate. As of early 2026, no statutory amendment specifically expanding access for technology entrepreneurs or qualified investors had been enacted. The Swiss Federal Council and parliament have considered proposals in both directions — some advocating tighter restrictions on commercial property, others proposing facilitations for established tech-sector residents.

Within Crypto Valley, there is ongoing informal advocacy for streamlined pathways for established technology entrepreneurs. The economic argument — that Switzerland’s competitiveness as a blockchain hub is marginally constrained by rules that channel successful founders away from residential ownership — has found some sympathetic parliamentary hearings without producing legislative change.

For buyers in 2026, the operative law is as described above: the EU/EFTA bilateral framework, the C permit threshold, the commercial property exception, and the authorisation system for limited vacation home categories.

For a detailed legal analysis of Lex Koller provisions, see our regulation guide to Lex Koller and the encyclopedia definition.

This article provides general informational guidance on Swiss real estate purchase rules as of early 2026. Lex Koller application is complex, fact-specific, and subject to change. This content does not constitute legal advice. Buyers should consult a qualified Swiss lawyer before proceeding with any Swiss property acquisition. See our Disclaimer.

Author: Donovan Vanderbilt | The Vanderbilt Portfolio AG, Zurich

Related Coverage

• Lex Koller: Switzerland’s Foreign Real Estate Acquisition Restrictions Explained
• Zurich vs. Zug Property: Where to Buy in Switzerland’s Most Expensive Real Estate Market
• Swiss Land Registry (Grundbuch): How Property Title Works in Switzerland
• Zug Real Estate Market: Property Prices, Crypto Valley Effect, and 2025 Outlook
• Swiss Real Estate Investment: Funds, Listed Companies, and Institutional Vehicles

Frequently Asked Questions

Can a US citizen on a B permit buy an apartment in Zug?

No. US citizens are non-EU/EFTA nationals, and a B permit does not grant them the residential purchase rights that a B permit grants to EU/EFTA nationals. A US citizen on a B permit cannot purchase residential property without cantonal authorisation, which is not granted for standard residential purchases. The US citizen must wait for C permit eligibility (generally 10 years of residence) or focus on commercial property in the interim.

Can a German citizen with a Swiss B permit buy property?

Yes, freely. Germany is an EU member state, so a German national holding a valid Swiss residence permit (B or C permit) can purchase residential property in Switzerland on the same terms as a Swiss citizen, provided the property is used as their primary residence. No additional authorisation or special procedure is required.

Is commercial property in Switzerland truly unrestricted for foreigners?

Yes. Lex Koller explicitly does not apply to commercial real estate including offices, warehouses, industrial buildings, and retail premises. A non-EU/EFTA national with a B permit, or even a non-resident foreigner with no Swiss permit at all, can purchase commercial property in Switzerland without any Lex Koller restriction or authorisation requirement.