Swiss Government Proposes Stricter Controls on Foreign Real Estate Ownership

The Swiss government moves to overhaul the Lex Koller law, imposing stricter authorization and sale requirements on non-EU/EFTA property owners to curb housing shortages.

By: AXL Media

Published: Apr 16, 2026, 9:24 AM EDT

Source: SWI swissinfo.ch

New Authorization Mandates for Non-EU Nationals

The heart of the preliminary draft involves a shift in how principal residences are handled for nationals residing outside the European Union (EU) and the European Free Trade Association (EFTA). Under the new rules, these individuals must obtain explicit authorization before purchasing a home in Switzerland. Furthermore, a new "sell-on" clause would require these owners to divest their property within two years if they relocate or no longer use the dwelling as their primary residence, preventing the accumulation of Swiss real estate as secondary assets by non-residents.

Cracking Down on Investment Properties and Commercial Rentals

The federal government is also targeting the commercial sector to prevent real estate from being used purely as a vehicle for capital placement. The proposed changes would prohibit foreign owners from purchasing commercial properties specifically to rent them out. This measure is designed to decouple the Swiss rental market from foreign investment interests, ensuring that commercial spaces serve functional business purposes rather than acting as passive income streams for international speculators.

Strategic Context: The "No to Ten Million" Initiative

These legislative adjustments do not exist in a vacuum; they serve as accompanying measures to the upcoming "No to ten million" popular initiative, which seeks to cap the Swiss population at ten million through strict immigration controls. By tightening Lex Koller, the government is attempting to demonstrate a proactive stance on the side effects of migration—specifically the strain on the housing market—ahead of the nationwide vote scheduled for June 14. The government stated that these proposals are intended to "refocus" the law on its original 1983 objective of protecting the Swiss landscape and preventing price overheating.