Non-EU expats will soon need a permit to buy a house in Switzerland

Expats from outside the EU and EFTA who live in Switzerland will soon need a permit to buy a house. The Swiss government has proposed changes to the Lex Koller housing law. 

Swiss gov’t making it harder for expats to buy houses 

Against the backdrop of a worsening housing shortage in Switzerland, the government has announced that it wants to make it harder for certain expats to buy property.

In a recent press release, the Federal Council outlined proposed amendments to the Federal Act on Acquisition of Real Estate by Persons Abroad, also known as Lex Koller. 

Changes include requiring expats living in Switzerland who are from a country outside of the European Union (EU) or the European Free Trade Association (EFTA), also known as third countries, to get approval to buy property. Expats will need to apply for a permit to buy a home and will also need to sell their property within two years if they leave Switzerland.

Currently, expats from third countries do not need approval to buy Swiss property if it will be their main residence. In the future, any property bought by expats from outside the EU/EFTA will need approval. 

Restrictions on holiday home purchases in Switzerland

The government also wants to further restrict people who live abroad from buying a holiday home in Switzerland. Fewer property purchase permit quotes will be allocated to cantons going forward.

The proposed amendments to the Lex Koller law are now out for public consultation, which will close on July 15. The measures form part of the government’s response to the SVP’s “No 10 million Switzerland!” initiative, which Swiss voters will decide on in a referendum on June 14.