Buying a Chalet in Verbier or Gstaad as a Non-Resident: What Lex Koller Actually Allows

Switzerland’s mountain resorts occupy a particular place in the imagination of the internationally mobile and represent a compelling investment opportunity. Verbier, Crans-Montana and Gstaad sit in that category of places where the aspiration to own property is almost reflexive – the clientele of these resorts tends, by definition, to be accustomed to acquiring things they want. Swiss real estate law introduces a structural constraint that often comes as a surprise: the federal statute governing foreign acquisition of Swiss residential property, known as Lex Koller.

Understanding what Lex Koller actually prohibits, and where the exceptions lie, is the necessary first step for any non-resident considering a property purchase in the Swiss Alps. The statute is less absolute than its reputation suggests – but its limits are specific, and the consequences of misunderstanding them are significant.

What Is Lex Koller?

The Federal Act on the Acquisition of Immovable Property by Persons Abroad (Loi fédérale sur l’acquisition d’immeubles par des personne à l’étranger) was introduced in 1983 and has been amended several times since. Its core purpose is to restrict foreign acquisition of Swiss residential property, on the basis that Swiss residential real estate should remain primarily accessible to residents of Switzerland. For the purposes of the Act, ‘persons abroad’ are defined as foreign nationals who are not resident in Switzerland, foreign legal entities, and certain Swiss entities controlled by foreign nationals.

The Tourist Zone Exception – Where Buying Is Possible

The principal exception relevant to buyers seeking a chalet in Verbier, Crans-Montana or Gstaad is the tourist zone designation. Certain Swiss municipalities in alpine and lakeside areas are designated as tourist zones under cantonal planning law. Within these designated areas, foreign non-residents may acquire residential property subject to cantonal quotas. Both Verbier (commune of Bagnes, Canton Valais) and Gstaad (commune of Saanen, Canton Bern) contain properties that fall within tourist zone designations, making foreign acquisition possible – in principle.

Annual Quotas and What They Mean in Practice

Each canton is allocated an annual quota of tourist zone acquisition permits for foreign non-residents. Switzerland as a whole has a national annual quota, divided among cantons that have tourist zones. The quotas are limited. Permit applications are made through the cantonal authority and processed on a first-come, first-served basis within the annual cycle.

The Permit Effect – How Your Residency Changes the Picture

The Lex Koller restrictions apply to non-residents. If you hold a Swiss B or C permit – meaning you are legally resident in Switzerland – the position may change materially. Permit B and C holders are treated as residents for the purposes of Lex Koller and may purchase residential property in Switzerland without restriction, including properties outside tourist zones and in the main residential market. For families considering a Swiss chalet alongside a Swiss residence, the sequencing question – permit first, then property – is worth examining carefully, since it can expand the choice of properties available.

Structuring and Common Errors

A structuring error appears with some regularity: the attempt to acquire property through a Swiss corporate vehicle – an SA or Sàrl – in the belief that the corporate form circumvents the Lex Koller regime. It does not. A Swiss company controlled by foreign non-residents is itself subject to Lex Koller restrictions governing the acquisition of residential property, and such acquisitions require the same authorisations. Frequently Asked Questions

Frequently Asked Questions:

Is there a minimum holding period before a Lex Koller permit property can be resold?

Yes. Resale of a tourist zone property acquired under a Lex Koller permit is typically subject to a condition requiring the property to be held for a minimum period, commonly around five years.

Do EU citizens need a Lex Koller permit?

EU citizens who are resident in Switzerland holding a B or C permit are not subject to Lex Koller restrictions as residents. EU citizens who are non-resident – living in an EU country and not holding a Swiss residence permit – are subject to the same restrictions as other foreign non-residents.

Buying a chalet in Verbier, Crans-Montana or Gstaad as a non-resident is possible. It requires navigating a quota system , understanding the conditions that attach to the permit, and avoiding the structural assumptions that regularly create problems for buyers whose advisers are more familiar with the purchase mechanics than with the regulatory framework. The legal due diligence here runs ahead of the commercial negotiation – not alongside it.

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Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Readers should not act on the basis of this content without first seeking professional advice specific to their circumstances. For guidance tailored to your situation, please contact David Kohler. Learn more about his practice here.