Switzerland Moves to Tighten Restrictions on Foreign Property Buys

(MENAFN) The Swiss government announced Wednesday it is seeking to significantly tighten rules governing property purchases by foreign nationals, as the Alpine nation grapples with a worsening housing shortage.

Under proposals submitted for public consultation through July 15, nationals from countries outside the EU and EFTA would be required to obtain government authorization before purchasing a primary residence in Switzerland, the Federal Council said. Approved buyers would further be obligated to sell their properties within two years of relocating abroad.

The proposed reforms extend well beyond residential real estate. The government is pushing for stricter oversight of foreign acquisitions of commercial properties, limiting exemptions solely to buyers who directly operate the associated business. It also wants to curb foreign purchases of vacation homes and apartment hotels by cutting annual cantonal quotas and requiring authorization for transactions between foreign buyers.

Additionally, the measures would abolish the existing blanket permission allowing foreigners to acquire shares in listed residential real estate companies and select real estate funds.

The Federal Council framed the overhaul as an effort to restore the original intent of the Lex Koller law — the federal statute governing foreign property ownership since 1983 — which was designed to limit overseas ownership, curb speculation, and preserve housing affordability for Swiss residents. Current exemptions include commercial properties, primary residences for B and C permit holders, and certain EU and EFTA citizens.

The property crackdown forms part of a broader government package unveiled alongside Bern's rejection of the "No to ten million Switzerland" popular initiative — a measure seeking to cap immigration that is set to go to a nationwide vote on June 14.

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