What is the Lex Koller?
The Lex Koller - officially the Federal Act on the Acquisition of Real Estate by Persons Abroad (ANRA) - is an important law in Swiss real estate policy. It regulates how foreign individuals and companies can acquire real estate in Switzerland.
Background of the Lex Koller
The Lex Koller has its origins in the 1960s. It arose from two earlier laws: the Lex von Moos (1961) and the subsequent Lex Friedrich (1983). The name "Koller" refers to Arnold Koller, a former Federal Councillor who made important amendments to the law in 1997.
The objectives of the Lex Koller
The main objective of the law is to prevent excessive "over-foreignization of domestic soil" and thus to protect the Swiss real estate market. This means that the law aims to prevent too many foreign buyers from acquiring property in Switzerland, thereby losing control over the real estate market.
The legal restrictions
In Switzerland, special rules apply to certain groups of people when acquiring real estate. In particular, so-called "persons abroad" are affected, for whom special restrictions exist. These include:
Foreign nationals residing outside of Switzerland
Citizens from EU or EFTA states who live in Switzerland but do not hold a residence permit B, C, or L
Nationals of other countries residing in Switzerland, provided they do not hold a permanent residence permit C
In contrast, the following persons may acquire real estate in Switzerland without restrictions:
Swiss nationals, even if they additionally hold another citizenship or live abroad
Persons from EU or EFTA states with lawful and actual residence in Switzerland and a valid residence permit (B, C or in certain cases L)
Third-country nationals with a C permit and actual residence in Switzerland
Real estate purchases via legal entities are also subject to certain requirements: The company must have its registered office in Switzerland and must not be controlled by persons abroad; such control is already presumed if they hold more than one third of the capital or votes. Using a domestic corporation therefore does not help foreign buyers to avoid the authorization requirement. However, even companies controlled from abroad can acquire property used as a permanent business establishment without authorization. The decisive factor for the authorization requirement is the natural person who is the beneficial owner.
The legal exceptions
Despite the restrictions for foreign buyers, there are various exceptions where an acquisition of real estate in Switzerland is possible:
Commercial use
Residence and permit
Listed real estate companies
Holiday apartments in tourist regions
Lex Koller declaration when incorporating a company
Also in the context of incorporating a company (e.g. stock corporation or LLC), whose purpose includes the acquisition or ownership of real estate, the submission of a so-called Lex Koller declaration is required. In doing so, the founding participants confirm that either no foreign persons within the meaning of the ANRA are involved or – if they are – that no acquisition of real estate subject to authorization is planned. This declaration is part of the incorporation documents and is required as part of the registration in the commercial register.
The aim of this regulation is to prevent circumvention, whereby foreign persons could indirectly acquire real estate through corporate structures without having to undergo an authorization procedure.
Legal advice
Due to the high legal risks and the complex regulations in connection with the acquisition of real estate by persons abroad, individual legal advice by a qualified professional is strongly recommended. Only in this way can it be ensured that all requirements are met and legal pitfalls are avoided.
Conclusion and outlook on future developments in Swiss real estate law
The Lex Koller remains a central instrument for regulating foreign real estate investments in Switzerland. The future of the Lex Koller will be shaped by continuous adaptations to changing economic conditions. Currently, the trend is rather towards tightening: in April 2026, the Federal Council opened a consultation on a revision that would further restrict the acquisition of real estate by persons abroad. Whether and when changes will enter into force is still open. Foreign investors will continue to have to plan carefully in order to meet the legal requirements.
