The Lex Koller law shapes what, where, and how foreign nationals can buy property across French-speaking Switzerland. Whether you’re an expat with roots in Geneva, a cross-border professional eyeing a local investment, or simply exploring second home options, understanding these rules is not just about compliance—it’s about setting your expectations and finding real opportunities. Let’s unlock the complexities, decode the cantonal differences, and help you determine where your ambitions fit into Switzerland’s property landscape. For a deeper understanding of the differing local markets, see our in-depth Suisse romande property landscape guide.
Understanding Lex Koller: The Basics for Foreign Buyers
The Lex Koller law is the foundation regulating foreign ownership of Swiss real estate. At its core, it aims to limit the number of residential properties in foreign hands, while still supporting economic activity—especially in tourism through carefully allocated holiday home quotas.
Not all foreigners are treated equally under the law. The level of restriction depends on your nationality, residency status, and—crucially—your permit type. EU and EFTA nationals with Swiss residence permits (B or C permits) can access more property options than non-resident foreigners. Permit C holders, regardless of passport, enjoy rights similar to Swiss citizens; for others, the rules are more nuanced and, often, stricter.
Who Can Buy What? Key Scenarios for Foreign Nationals
The rules under Lex Koller segment buyers into clear categories. If you’re hoping to buy a house in Switzerland as a foreigner in Suisse romande, here’s how eligibility breaks down:
Foreigners living abroad—those without a Swiss residence permit—are the most restricted. They generally cannot purchase property for personal residence. Their opportunities are limited to certain designated holiday homes, subject to national and cantonal quotas.
Foreign nationals who hold a B or C permit and live in Switzerland (whether they’re EU/EFTA or from further afield) have more leeway. Those with a C permit are almost on par with Swiss buyers. B permit holders can usually buy a primary residence if it will be their main home, but investment and second home purchases are still restricted. Cross-border workers without Swiss residency are treated as non-resident, with almost no access to residential property in this region.
Property Types and Use: Primary, Holiday, and Investment
Your intended use for the property is crucial. For eligible resident foreigners, buying a primary home is possible. In contrast, holiday home purchases in Switzerland are tightly controlled. Designated only for non-resident foreigners, these properties must be in specific tourist zones and adhere to size limits (max 200 m² living space, 1000 m² plot). Within Suisse romande, true opportunities to buy such homes are rare—the largest quotas are in tourism-heavy cantons like Valais, with Vaud offering some possibilities, and Geneva being almost entirely closed to this category.
Commercial properties (shops, offices) stand apart: Lex Koller does not apply to most business purchases, regardless of your nationality or residence status. However, buying property for pure investment or buy-to-let—such as apartments you don’t plan to live in—is virtually never permitted for non-resident foreigners.
Permit Status: B, C, and the Impact on Buying Rights
Permit status is central to your ability to buy. Here’s how it affects your options:
Permit C (permanent residence) holders, regardless of their nationality, are treated like Swiss citizens for property purchases. Whether you’re from the EU, US, or elsewhere, as long as you live in Switzerland with permit C, you can buy a primary residence, and often a holiday home, with few restrictions.
Permit B holders (both EU/EFTA and non-EU/EFTA) can buy a home to live in, provided it’s their primary address. However, regulations tighten for second homes or investment properties. With short-term (L) permits, rights are very limited and vary by canton—check before making any plans.
Cantonal Differences: Vaud vs. Geneva
Federal law sets the framework, but cantonal interpretation is critical—especially in the property-hungry regions of Vaud and Geneva. cantonal differences Vaud/Geneva often make or break foreign buying opportunities.
Geneva applies the strictest interpretation of Lex Koller; very few authorizations are granted to foreigners, even for holiday homes. Unless you live in the canton with the right permit, gaining access is nearly impossible. In practice, Geneva rarely issues new holiday home quotas.
By contrast, Vaud offers slightly more options. Resident foreigners (with B or C permits) may buy a primary home. Holiday home quotas are higher than Geneva’s, but still modest compared to tourist cantons like Valais. Procedures and local enforcement can shift, so always seek clarity from cantonal authorities before you house-hunt.
Cross-Border Buyers: Living in France, Working in Geneva
Cross-border buyers—those who reside in France or another nearby country while working in Switzerland—are generally treated as non-residents under Swiss law. This means that, barring a move to Switzerland and a qualifying permit, they cannot buy residential property for personal use in Suisse romande. Opportunities are effectively limited to quota-controlled holiday homes, which are extremely difficult to access in core cities like Geneva.
If you relocate to Switzerland and secure a B or C permit, your rights expand dramatically. Until then, expect to encounter significant Lex Koller roadblocks.
Buying Through Companies and Legal Entities
Trying to bypass the Lex Koller restrictions by buying property through a Swiss-registered company is no easy loophole. The law requires any such company to be domiciled, operated, and majority-controlled by Swiss residents for the purchase to be eligible. Using corporate structures to circumvent the law is not permitted.
For commercial property, different rules apply; such investments are generally open to foreign-held entities, provided the property is genuinely used for business activities rather than as a workaround for residential access.
Financing in Suisse Romande: What Foreign Buyers Should Expect
Swiss banks do provide bank financing for foreigners, but expect far stricter criteria than Swiss residents face. Non-residents typically need a minimum of 40% down payment, face conservative lending ratios (maximum 60% loan-to-value), and undergo rigorous income checks. Each bank has its own requirements, and eligibility can tighten rapidly if you’re not resident in Switzerland.
Resident foreigners—especially those with B or C permits—will find terms closer to Swiss standards, with more competitive loan-to-value ratios and potentially lower rates. As always, local market knowledge and pre-qualification are important assets in a competitive environment.
Summary Table: Foreign Buyers Under Lex Koller in Suisse Romande
| Buyer Type | Primary Residence | Holiday Home | Investment Property | Commercial Property | Financing |
|---|---|---|---|---|---|
| Foreign (non-resident) | Not allowed | Possible, quota/area limits | Not allowed | Allowed (mostly) | Max 60% LTV, strict |
| EU/EFTA resident (B/C permit, domiciled) | Allowed | Restricted | Not allowed | Allowed | Standard terms (case-by-case) |
| Non-EU/EFTA resident (C permit, domiciled) | Allowed | Restricted | Not allowed | Allowed | Standard terms (case-by-case) |
| Permit B holder (EU/EFTA or others) | Allowed (if main home) | Restricted | Not allowed | Allowed | Standard terms |
| Switzerland-based legal entity | Only if managed/owned by Swiss residents | Rare, case by case | Not allowed | Allowed if for business | Entity financing possible |
Key Takeaways for Foreign Buyers in Suisse Romande
- Lex Koller foreigners buying property sharply limits foreign property ownership, especially for non-residents and cross-border buyers.
- EU/EFTA citizens with B or C permits are best positioned to buy homes—primary residence is usually possible.
- Holiday home purchases are subject to strict quotas, with Geneva being nearly impossible and Vaud offering limited opportunities.
- Investment property (without residency) is generally prohibited; commercial real estate is largely exempt from Lex Koller.
- Financing is available but on tougher terms for non-residents; local bank relationships and sizable down payments are essential.
People Also Ask: Mini-FAQ
Can non-resident foreigners buy any property in Geneva?
Almost never. Geneva enforces some of Switzerland’s strictest regulations, rarely granting Lex Koller permits for non-residents, except under exceptional circumstances or for certain commercial properties.
Is it easier for EU citizens to buy property in Suisse romande?
If they hold a B or C permit and reside in Switzerland, yes—they can purchase a primary home. Without residency, they face the same restrictions as non-EU nationals.
What are the rules for buying holiday homes as a foreigner?
Holiday home purchases are possible for non-resident foreigners, but only in quota-limited tourist areas and within tight space and land requirements. For most of Suisse romande, especially Geneva, opportunities are rare.
Can I get a mortgage in Switzerland as a foreigner?
Yes, but banks set stricter benchmarks: higher down payments (often 40%), proof of income, and loan-to-value maximums of around 60% for non-residents. Resident permit holders benefit from better terms.
Do joint purchases with a Swiss spouse change my eligibility?
Absolutely. Buying with a Swiss or C permit-holding spouse often unlocks broader rights under Lex Koller, including for primary residency.
Know Before You Buy: Final Guidance and Compliance Notes
With so much variation—not just nationally but at the cantonal and even communal level—attempting to navigate Lex Koller regulations without professional advice can put your plans at risk. Always consult a local attorney or notary before making any commitments. Rules may change, quotas may fill rapidly, and enforcement is strict.
While Swiss property remains a uniquely stable investment, your journey as a foreign or cross-border buyer starts with clarity—and compliance. Explore more guides on buying and living in Switzerland, or connect with a local specialist for advice tailored to your situation.