Lex Koller 2026: What the Proposed Changes Mean for Foreign Buyers of Swiss Property

The Federal Council has opened a consultation on the most significant tightening of Swiss foreign ownership rules in decades. Here is what internationally mobile buyers need to understand and what to do before the window narrows further

Lex Koller 2026 is the most consequential regulatory development in Swiss real estate for international buyers in a generation. On 15 April 2026, the Swiss Federal Council opened a formal consultation on a comprehensive revision to the Federal Act on the Acquisition of Real Estate by Persons Abroad — the law that has governed foreign property ownership in Switzerland since 1983. The consultation closed on 15 July 2026, revealing deep political divisions and setting the stage for a parliamentary process that is unlikely to conclude before 2028.
The proposals, if adopted, would reshape the conditions under which non-European nationals can acquire Swiss property. They would reduce holiday home quotas, close a longstanding resale loophole between foreign buyers, and restrict access to Swiss real estate investment vehicles that have historically operated outside the scope of Lex Koller entirely. For international buyers who have been considering Swiss property — whether a lakefront primary residence, an Alpine chalet, or a position in a Swiss real estate fund — the regulatory window is open today in a way it may not be tomorrow.
This article explains what is being proposed, who is affected, what is explicitly not changing, and what the broader Swiss luxury market looks like as this revision unfolds.

What Lex Koller Is — and Why It Is Being Revised Now

Lex Koller was first enacted in 1983 as a mechanism to prevent excessive foreign ownership of Swiss residential real estate. Its core logic has remained intact for over four decades: non-resident foreign nationals require a cantonal authorisation to purchase residential property in Switzerland, and those authorisations are subject to annual quotas, geographic restrictions, and conditions of use.
The current revision is being driven by two converging pressures. The first is a domestic housing shortage that has made Swiss politicians sensitive to the perception — and the reality — that foreign capital is competing with local residents for a constrained supply of homes. The second is the political context created by the rejection of the popular initiative known as No to Ten Million, which sought to cap immigration. The Federal Council has positioned the Lex Koller revision as one of a package of accompanying measures in response to that political moment.
The consultation draft, published in April 2026, does not represent final legislation. The consultation period closed on 15 July 2026 and revealed deep political divisions: the SP and SVP have broadly endorsed the tightening, while business associations and the real estate industry have warned of serious economic consequences. The Federal Council will now evaluate the submissions and prepare a revised message for parliament. An entry into force before 2028 is considered unlikely — but the direction of travel is clear, and buyers who understand it will be better positioned than those who do not.

Your path to Swiss property ownership

The Four Key Changes Being Proposed

1. Reduction of the Holiday Home Quota

The existing framework allocates approximately 1,500 holiday home permits annually to non-resident foreign buyers across Switzerland’s tourism cantons, including Valais, Graubünden, Vaud, and Ticino. The draft proposes a structural downward reduction of this quota. Fewer permits means more competition for what remains — and for the Alpine locations that are already quota-constrained, this would accelerate an existing trend toward extreme scarcity.

2. Closing the Inter-Foreigner Transfer Loophole

Since 2002, a transaction in which one foreign buyer sold a holiday home directly to another foreign buyer was able to bypass the cantonal quota system entirely. These transfers did not consume a quota slot. The proposed revision subjects all such transactions to full authorisation checks, meaning every sale from a foreign seller to a foreign buyer would count against the canton’s annual allocation. For resale markets in Verbier, Zermatt, and Ascona — where foreign-to-foreign transactions are common — this is a material change.

3. Restriction of Real Estate Investment Vehicles

Under the current rules, foreign investors could acquire shares in listed Swiss residential real estate companies and units in real estate funds and SICAVs (investment companies with variable capital) without triggering Lex Koller restrictions. The draft proposes to end this exemption. Non-resident foreign nationals would no longer be permitted to acquire such instruments — effectively closing a pathway through which international capital has accessed the Swiss residential market indirectly without the constraints that apply to direct ownership.

4. Tighter Conditions for B-Permit Holders

For internationally mobile professionals living in Switzerland under a standard B residence permit, the proposals introduce additional complexity. The current framework has allowed B-permit holders to acquire property under certain conditions; the revised draft introduces tighter criteria that may affect buyers in transit between permits or those whose residency status does not yet qualify as fully established under the proposed new rules.

What Is Explicitly Not Changing

The proposed revision is significant — but it is also specific. Understanding what is not in scope is as important as understanding what is.The framework for EU and EFTA nationals remains entirely unchanged. Citizens of European Union and European Free Trade Association member states continue to enjoy free movement rights in Switzerland and may acquire property without Lex Koller restrictions. For buyers from Germany, Austria, France, Italy, the Netherlands, the Scandinavian countries, and the other EU and EFTA member states, the proposed revision does not alter the acquisition framework at all.
The tourist zone quota system for holiday homes is not being abolished — it is being tightened. The pathway for non-EU nationals to acquire permitted holiday properties in designated tourism zones continues to exist; there will simply be fewer permits available within it.
Primary residence acquisition for non-EU nationals who hold a valid Swiss residence permit remains possible under the existing framework and is not the target of the current revision. The focus of the reform is on non-resident foreign buyers and on indirect investment vehicles — not on individuals who have established legal residence in Switzerland.

Can Foreigners Buy Property in Switzerland?

What This Means for Prices and Availability

The proposed changes do not exist in isolation. They land in a Swiss luxury market that has already been tightening for years — and the combination of quota reduction with the closure of the inter-foreigner transfer loophole is likely to accelerate existing price dynamics in the most sought-after Alpine and lakefront locations.
The UBS Luxury Property Focus 2026, published in May 2026, provides the most authoritative current picture of where the market stands. Across 31 top Swiss locations analysed, luxury property prices rose by an average of more than 3 percent in 2025. In the mountain regions, the figure was 6 percent — driven primarily by affluent international buyers. Swiss luxury real estate is now on average around 40 percent more expensive than it was five years ago, with no other region in the country having recorded comparable gains.

Source: UBS Luxury Property Focus 2026 (May 2026); Wüest Partner; Global Property Guide. Figures reflect average prices in the luxury segment and are subject to variation by micro-location and property type.

Luxury Real Estate in Switzerland: Lake Zurich, Central Switzerland or Ticino

The structural drivers behind these numbers are not going away. Switzerland today has approximately 50 percent more taxpayers with assets exceeding CHF 10 million than it did in 2019 — an increase of nearly 10,000 individuals. The strong performance of financial markets over recent years has expanded the pool of buyers who can and will pay for Swiss luxury real estate. Geopolitical instability globally continues to direct capital toward politically stable, legally robust jurisdictions — of which Switzerland remains the pre-eminent example.
The proposed Lex Koller revision adds a new layer to this picture: by reducing the available supply of legally acquirable properties for non-EU buyers while demand remains strong, it creates a structural scarcity premium for those properties that do remain within reach. For buyers who qualify and act within the current framework, the existing window may represent a materially better entry point than what the market will look like once the revision is enacted.

The Weber Law: A Parallel Constraint Worth Understanding

The Lex Koller revision does not operate in isolation from Switzerland’s other major supply constraint: the Weber Law, which came into force in 2012 and prohibits the construction of new secondary residences in any municipality where such properties already exceed 20 percent of the total housing stock.
In the Alpine resorts where international demand is highest — Verbier, Zermatt, Crans-Montana, and others — the 20 percent threshold has long since been reached. No new second homes may be built in these locations. The supply of legally transactable properties is therefore fixed, and the only way to acquire one is through resale. The proposed closure of the inter-foreigner transfer loophole directly intersects with this reality: in markets where every unit of supply is a resale transaction, and many sellers are foreign nationals, the new authorisation requirement for foreign-to-foreign transfers is not a minor administrative adjustment — it is a significant structural change to how the resale market functions.

What International Buyers Should Do Now

The consultation closes on 15 July 2026. The legislative process that follows will take time — but the direction is set, and sophisticated buyers do not wait for legislation to pass before adjusting their approach. The practical implications for buyers at different stages are clear.

Buyers Who Are Ready to Proceed

The current framework remains in force. For non-EU nationals who have identified a property, established their Lex Koller eligibility, and have the financial and legal structure in place, acting within the existing rules is the most straightforward path. There is no certainty about the shape or timing of the final legislation, but there is certainty that the proposed direction makes the current framework more permissive than the future one.
Buyers Who Are in the Search Phase