Lex Koller Tightened: What the Federal Council’s 2026 Proposals Mean for Foreign Property Buyers

Switzerland’s rules on foreign acquisition of real estate have remained broadly stable for decades. Lex Koller, the federal statute that restricts foreign nationals from buying Swiss residential property, has been amended periodically; its core logic has stayed intact. That may be about to change. On 15 April 2026, the Swiss Federal Council opened a consultation on a significant tightening of the law. The proposals, if adopted, would reshape the conditions under which non-European nationals can buy Swiss property and would restrict access to holiday homes and real estate investment vehicles in ways that have not applied before.

The consultation runs until 15 July 2026. The proposals are not yet law; they are a draft. But they signal the direction the Federal Council intends to move, and the changes under discussion are material. For anyone currently considering a Swiss property purchase or holding Swiss real estate through a structure, understanding the proposals now is the appropriate starting point.

Why the Federal Council Is Acting

The stated driver is Switzerland’s housing shortage. Residential property in Switzerland has become significantly more expensive and less accessible for local residents; the Federal Council has identified foreign acquisition as one factor contributing to that pressure. The proposals are also linked to the federal government’s accompanying measures in response to the popular initiative ‘No Switzerland at 10 million’, which the Federal Council recommends rejecting. The Lex Koller tightening is presented as a proportionate measure to address housing concerns without endorsing the more restrictive outcomes the initiative would require.

The mandate to prepare a revised draft was given to the Federal Department of Justice and Police in January 2025. The draft that emerged reflects a consistent theme: Lex Koller should be refocused on its original purpose, which was to prevent foreign speculation in Swiss residential property rather than to restrict all foreign ownership.

Third-Country Nationals and Primary Residences

The Federal Council first intends to make the acquisition of primary residences subject to authorisation for third-country nationals, that is, nationals of states that are neither members of the EU nor EFTA.

A further condition is proposed for those who subsequently leave Switzerland. If a third-country national acquires a primary residence under the new authorisation regime and then relocates away from Switzerland, they would be required to resell the property within two years. The intention is to prevent primary residence acquisitions from becoming long-term investment holdings once the occupant has departed.

Commercial Properties: The End of the Investment Exemption

The Federal Council further proposes to tighten the conditions governing the acquisition of real estate intended for commercial use by persons abroad: only where the acquirer operates the establishment themselves will they continue to be exempt from the requirement to obtain authorisation. In order to prevent acquisitions made solely for investment purposes, persons abroad will no longer be permitted to acquire commercial properties for the purpose of subsequently renting or leasing them to third parties.

Holiday Homes: Quotas Reduced, Resales Restricted

Holiday homes and units in apartment hotels in Swiss tourist zones are already subject to Lex Koller restrictions; cantonal quotas limit how many can be acquired by foreign non-residents each year. The proposals would tighten this framework in two respects. First, the annual cantonal quotas would be reduced. Second, and more significantly, resales of holiday homes between foreign persons would once again require authorisation and would count against the cantonal quota.

Under the current regime, a sale from one foreign owner to another foreign buyer does not consume a quota unit; the quota is only triggered by initial acquisitions from the available stock. The reform would remove this distinction. Every acquisition by a foreign person, whether from a Swiss seller or from another foreign owner, would reduce the cantonal quota by one unit.

Listed Real Estate Funds and SICAVs

Finally, the Federal Council has decided to no longer generally permit the acquisition by persons abroad of shares in listed residential real estate companies and units in real estate funds and real estate SICAVs (investment companies with variable capital) that are regularly traded on the market.

What Remains Unchanged — and What the Consultation May Still Alter

The proposed changes do not affect the existing framework for EU and EFTA nationals, who continue to enjoy free movement rights and may acquire property in Switzerland without Lex Koller restrictions. The tourist zone quota system for holiday homes remains in place; the reform proposes to reduce the quotas and tighten resale rules within that system, not to abolish it. The Federal Council has also included a relaxation in the draft: hotel establishments would be given easier access to housing for their staff, responding to a parliamentary mandate. The full draft and explanatory report are available on the Federal Council website. The consultation closes on 15 July 2026; the final legislative text will reflect whatever adjustments emerge from that process. The timeline to formal entry into force is not yet confirmed.

Frequently Asked Questions

Do these proposals affect EU and EFTA nationals?

No. Citizens of EU and EFTA member states are not subject to Lex Koller restrictions; this flows from Switzerland’s bilateral agreements on free movement of persons. The proposed changes target third-country nationals and tighten the existing rules for foreign non-residents generally; EU and EFTA nationals are not affected.

If I currently hold a Swiss B or C permit, would the new rules apply to me?

For EU and EFTA permit holders, the answer is no. For third-country national permit holders, the proposal would introduce an authorisation requirement for primary residence acquisitions that does not currently exist. The detail of how existing permit holders would be treated under the new regime will depend on the final text adopted after the consultation.

Would the changes apply to properties already owned by foreign nationals?

The consultation document addresses the forward-looking obligations; it does not propose to require existing foreign owners to divest. The resale restriction for third-country nationals who subsequently leave Switzerland would apply to properties acquired under the new regime, not retrospectively to existing holdings.

How would the quota changes affect the holiday home market in Verbier or Gstaad?

The effect would be to reduce the number of transactions available each year in already constrained markets. Currently, resales between foreign owners do not consume the cantonal quota; under the proposals they would. Combined with a reduction in the quota itself, the total pool of available permit transactions would shrink. This would likely increase competition for the permits that do remain.

When would these changes take effect?

The proposals are at the consultation stage; no entry into force date has been announced. The consultation closes on 15 July 2026. Following that, the Federal Council would prepare a formal bill for parliamentary consideration. The timeline for entry into force will depend on the parliamentary process and on whether a referendum is initiated.

The Federal Council’s proposals represent the most substantial rethinking of Lex Koller in a generation. Whether they are adopted in their current form will depend on the consultation process and the eventual parliamentary debate. What is clear is that the direction of travel is toward greater restriction; the question is how far that restriction extends and over what timeline. For foreign buyers or holders of Swiss real estate, the period between now and the adoption of any revised law is the appropriate moment to review existing positions and take considered decisions about future acquisitions.

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.