Lex Koller Explained: How Your Swiss Residence Permit Affects Your Right to Buy Property

What Is Lex Koller?

Lex Koller is the informal name for Switzerland's federal law restricting the acquisition of real estate by "persons abroad" (the Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland, or BewG). It was introduced decades ago to prevent uncontrolled foreign buy-up of Swiss land, and it still shapes what many expats can and cannot buy today.

The key idea is this: the law does not simply ask "are you Swiss or foreign?" It asks whether you count as a "person abroad" under the law — and that depends heavily on your residence status, your permit type, and whether the property will be your actual home.

The Settlement Permit (C): Treated Like a Swiss National

If you hold a C permit (settlement permit), Lex Koller essentially does not apply to you. Regardless of your nationality — EU/EFTA or otherwise — you are treated the same as a Swiss citizen for property purposes. You can buy a primary residence, a second home, a holiday property, or an investment property without needing special authorization under this law. Other general rules (financing, cantonal taxes, notarial requirements) still apply as normal.

The Residence Permit (B): The Most Common but Nuanced Case

Most expats living and working in Switzerland long-term hold a B permit. Here the rule that matters most is the "main residence" exemption: if you are legally resident in Switzerland and the property will genuinely be your primary home — the place where you actually live, not a pied-à-terre — you can generally buy it without needing Lex Koller authorization. This applies to B permit holders from EU/EFTA countries and, in practice, is also commonly available to B permit holders from other countries, since the exemption is based on having your registered, actual domicile in Switzerland rather than on nationality alone.

Where it gets more restrictive is anything beyond your one primary home. A second home, a holiday apartment, or a buy-to-let investment property is treated much more cautiously if you are not a C permit holder — these typically require cantonal authorization, and in tourist regions such purchases may be limited by annual quotas, size restrictions, and rules against permanent rental as a business. In short: your first, genuinely lived-in home is usually straightforward; anything additional is not.

Short-Term Residence Permit (L)

L permit holders have a short-term residence authorization, often tied to a fixed-term employment contract. Because the permit is temporary by nature, it can be harder to demonstrate the kind of stable, ongoing domicile that the "main residence" exemption assumes. Whether an L permit holder can buy a primary residence without authorization depends on the specifics — the length and renewability of the permit, the canton, and how convincingly the property is shown to be an actual, ongoing home rather than a temporary or investment purchase. This is an area where practice varies, so it is worth checking directly with the cantonal authority responsible for Lex Koller decisions before making an offer.

Cross-Border Commuters (G Permit)

If you hold a G permit, you work in Switzerland but your legal domicile remains abroad — that is the whole point of the cross-border commuter status. Because you are not resident in Switzerland, you are generally treated as a "person abroad" for Lex Koller purposes, meaning residential property purchases in Switzerland are restricted in the same way as for any foreign buyer without Swiss residence. There can be narrow exceptions related to business premises, but a typical home purchase is not straightforward for G permit holders.

Swiss Citizens and Commercial Property

Swiss citizens are never considered "persons abroad," regardless of where they currently live, so Lex Koller never restricts their purchases. Separately, commercial and business real estate — offices, retail units, industrial premises — generally falls outside Lex Koller's residential restrictions and can be bought by foreign individuals and companies more freely, since the law is aimed at protecting residential and recreational property, not business investment.

Why Cantons and Individual Cases Still Matter

Even within these categories, application varies: cantons administer Lex Koller authorizations, and practices, interpretations, and quota systems for holiday-home cantons differ. Property type (apartment vs. house vs. land with development rights), intended use, and even how a mortgage lender assesses your situation can all affect the process. There is no single national checklist that covers every case identically.

Note

This article provides general information only and is not legal, tax, mortgage, or financial advice. Lex Koller rules and their application depend on your specific permit, nationality, canton, and personal circumstances. Before making any purchase decision, confirm your situation with a qualified lawyer, notary, or the cantonal authority responsible for Lex Koller matters.