Lex Koller Law on Real Estate Investment for Foreigners in Switzerland Switzerland offers an attractive real estate Sunday for investors around the world with its stable economy, low inflation rates and reliable legal system. However, there are certain legal regulations for foreigners who want to buy property in Switzerland. One of the most important of these regulations is the law known as the Lex Koller Law, which restricts foreigners from buying real estate in Switzerland. What is Lex Koller's Law? The Lex Koller Law, officially called "Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland", binds the acquisition of property by foreigners living or wishing to invest in Switzerland to certain rules. The law aims to prevent foreigners from making speculative purchases in the housing market, while prioritizing the ownership of property by locals in Switzerland. The Basic Rules of the Lex Koller Law Restrictions on the Purchase of Housing Citizens of EU/EFTA member states can freely buy real estate in Switzerland if they have a type B or C residence permit. Foreigners who are not EU/EFTA members must obtain a special cantonal permit to purchase a residence in Switzerland. The purchase of housing for foreign investors who do not reside in Switzerland is largely restricted. Commercial Properties Are Free Foreign investors can buy commercial properties such as hotels, offices, shops, industrial facilities, logistics centers in Switzerland without any restrictions. Exceptions in Tourist Areas The tourist destinations of Switzerland, Zermatt, St. In certain regions such as Moritz, Verbier, Gstaad, foreigners may be granted the right to buy holiday homes. However, square meter limitations or resale restrictions may be applied to these purchases. Cantonal Powers In Switzerland, cantons can set their own rules for foreigners to acquire housing. Some cantons offer more flexible regulations for foreign investors, while others may ban them completely or impose quotas. Recommendations For Those Who Want to Invest in Real Estate in Switzerland A few critical recommendations for foreign investors who want to invest in real estate in Switzerland: Focusing on commercial real estate investments: Since Lex Koller does not impose any restrictions on commercial real estate, investments in this area offer an attractive alternative for foreigners. To evaluate opportunities in tourist areas: The residences that are allowed to foreigners in certain tourist areas may contain great opportunities in terms of investment. Researching cantonal laws: In Switzerland, each canton may have different regulations. Therefore, cantonal laws should be studied in detail before investing. Getting support from an expert advisor: Since the process of investing in real estate in Switzerland can be complicated, working with a professional advisor will make the transactions easier.