Investment property in Switzerland: what non-residents can actually buy

Switzerland has one of the most resilient real estate markets in Europe — and one of the most regulated. The framework that determines what non-residents can and cannot buy is called the Lex Koller, or more formally, the Federal Act on the Acquisition of Real Estate by Persons Abroad. It sounds restrictive. In practice, for investors who know how it works, it leaves more room than expected.

What the Lex Koller actually does

The law dates to 1983. Its purpose was — and remains — to protect Swiss soil from speculative foreign ownership of residential property. It does this by making certain residential acquisitions by non-residents subject to cantonal authorisation. Authorisation is granted only in narrowly defined cases. For most residential investments by non-residents, it is not granted at all.

What the law does not restrict is just as important: commercial property, operating businesses with real estate attached, and — within specific limits — owner-occupied housing for residents.

Commercial real estate: the open route

Office buildings, hotels, industrial premises, retail, logistics, healthcare facilities — none of these require Lex Koller authorisation, regardless of the buyer's nationality or residence. A non-resident investor can acquire a commercial property in Zurich, Geneva or Lugano on the same legal footing as a Swiss buyer.

This is where most serious foreign capital in Swiss real estate sits. The yields are tighter than in southern Europe, but the tenant covenants are strong, the legal framework is predictable, and the currency is the Swiss franc.

Residential investment property — the status board

The picture for residential and mixed-use property is more nuanced. Three categories matter:

The Swiss company route — when it works, when it doesn't

A frequent question: can I set up a Swiss company and buy residential property through it? The answer is not a clean yes or no. The law looks at the substance, not just the form. If a Swiss company is controlled by non-residents and acquires residential real estate, the Lex Koller still applies — the holding structure does not bypass it.

Where a Swiss company genuinely helps: structuring commercial real estate investments, ring-fencing assets, planning succession and managing tax efficiently across multiple holdings. For these purposes, a properly substantiated Swiss holding company is one of the most effective tools available.

Cantonal differences are real

The federal law sets the framework. The cantons apply it. The practical consequences differ:

• Zurich, Geneva, Vaud: Strict interpretation. Mixed-use cases tend to land on the residential side.
• Zug, Schwyz, Lucerne: Pragmatic interpretation. More room for commercial reclassification where the substance supports it.
• Tourist cantons (Valais, Grisons, Ticino): Have separate quotas for second homes in defined zones. These are tightly managed and almost always already allocated.

Local advice matters. The legal text is the same in every canton; the answer you get is not.

The structural mistakes to avoid

1. Underestimating the law's reach. Workarounds that look clever — nominee structures, layered holdings, retroactive reclassification — are exactly what the law is designed to catch. Acquisitions that violate the Lex Koller are voidable. The buyer loses the property and the money.
2. Choosing the wrong canton for the deal. A mixed-use building that works in Zug may not get registered in Zurich. This is a question to settle before signing, not after.
3. Treating the bank financing as a separate question. Swiss banks apply their own due diligence on top of the Lex Koller. A deal that is legally clean can still fail at the lending stage if the structure isn't built with both lenses in mind.