1) Conditions of sale

If a Swiss person or a person domiciled abroad wishes to sell a property to a Swiss purchaser, the transaction can be carried out without delay and without requiring any authorisation.

On the other hand, the sale of (non commercial) property owned by a Swiss or a foreigner, whether resident or not, to persons domiciled abroad is subject to various laws and edicts. The Federal law for the acquisition of freehold property by non-residents, commonly known as “Lex Koller” stipulates sales to foreigners on the basis of annual quotas per tourist region (according to Canton). If these quotas are filled during the course of the year it is necessary to wait for the provision of additional quota or for the release of the following year’s quota.

This law came into effect on the 1st January 1985 and followed different legislations, in particular the Lex Furgler. Its goal is to limit the acquisition of apartments and other non commercial properties in Switzerland by non-resident foreigners.

2) Conditions of purchase

Firstly, it must be pointed out that a legal entity such as a limited company or any other legal form cannot acquire a holiday home. The purchase must be made in one’s own name.

Also, those with a C permit are treated as Swiss nationals for the purchase of buildings and can therefore acquire any apartment, chalet, building, land or villa in Switzerland.

European nationals from an EU country (or EFTA) benefiting from a B permit can acquire properties as a Swiss, including for pure investment. Holders of B permits coming from any other country can also buy property freely as long as it is their main residence. If they purchase as a second home, they must also request an authorisation.

3) Legal restrictions

a) Non-Swiss may only own ONE property per family in Switzerland: family defined as husband and wife and/or under-age children (up to 18 years). After the age of 18, the son or daughter of an owner may purchase one property in his/her own name, provided he/she can prove his/her financial independence.

b) The foreign purchaser may buy an apartment with up to 200 m2 of living area. The purchase of an individual chalet is also possible if the land does not exceed about 1,000 m2 (to date the limit has reached plots up to 1,750 m2). Special authorisations may be obtained if the owner can prove the necessity (large family, grand style of life) or, for land, if it is sloping or the topology justifies it.

c) The non residents owners that have bought a holiday property after January 1st 2008 cannot resell during 5 years, neither to a non resident, nor to a Swiss, except imperious reasons (force majeure).

d. Dans certains cas, si l’appartement n’est pas occupé durant une longue période, le logement doit être revendu dans un délai de deux ans. (Après le délai de 5 ans pour ceux qui ont acheté après le 1er janvier 2008).

d) In certain cases, if the apartment is not occupied for a long period, the property must be resold within a time limit of two years. (After the delay of 5 years for those who have bought after January 1st 2008).

e) The owner, or his family, must occupy his apartment as a holiday home, in principle every year, but for not more than six months as per the law for stays of foreigners in Switzerland.

f) The property can be rented out for up to 11 months per annum. Annual rentals are not allowed.

If the vendor is of Swiss nationality (or a limited company) and the purchaser is a foreigner, a request for authorisation must be addressed to the relevant authorities (see below).

If the vendor and the purchaser are both foreigners, the notary must also request an authorisation. In this case, the authorisation will not be deducted from the quota and the process will follow its normal course even if the quota has been filled.

Sale of a property to a Swiss national does not require any particular authorisation from the authorities, whatever the nationality of the vendor.