Buying property in Switzerland as a foreigner is possible, but not always freely. A federal law, known in daily use as Lex Koller (formally the LFAIE in French, the BewG in German), restricts the purchase of real estate by people abroad. Your employee's nationality, permit and plans for the property decide which rules apply.
This guide is written for the HR or mobility manager. It explains the rule, the main exceptions and the order in which to approach a purchase. It is general information, not advice on a single case.
What Lex Koller does in one paragraph
Lex Koller requires people who live abroad to obtain a cantonal authorisation before they acquire a property (immeuble in French, Grundstück in German). The federal supervisory authority is the Federal Office of Justice (FOJ). Each canton applies the law through its own office, so practice and timing differ from one canton to the next (Canton of Zurich; FOJ).
The law sits alongside, and is separate from, immigration law. A work permit lets your employee live and work in Switzerland. It does not by itself decide whether they may buy.
Who needs an authorisation and who does not
The exceptions matter more than the rule for most assignments.
| Buyer | Position under Lex Koller |
|---|---|
| Holder of a permit C (settlement permit), EU/EFTA or third-country | Treated like a Swiss buyer |
| EU/EFTA national living in Switzerland | Purchase without restriction |
| Third-country national living in Switzerland | Own main residence without authorisation |
| Any buyer, any nationality | Commercial premises for lasting business use are open to all |
| Person living abroad | Cantonal authorisation needed |
These categories come from the cantonal guidance (Canton of Zurich). The detailed conditions of each, and how the canton reads them, are for the specialist to confirm.
EU/EFTA and third-country nationals
Switzerland has two admission regimes for foreign workers. Citizens of EU and EFTA states come under the free movement agreement. Citizens of other states fall under the general foreign nationals law (State Secretariat for Migration, SEM). The detailed admission conditions for the second group are set by the SEM and are not repeated here.
For property, the split looks like this:
- EU/EFTA nationals living in Switzerland may buy without restriction.
- Third-country nationals living in Switzerland may buy their own main residence without authorisation.
- Both groups are treated like Swiss buyers once they hold a permit C.
Our guides on EU/EFTA hiring and transfers and on how to obtain a Swiss work permit cover the immigration side. The overview of Swiss work permits shows the permit types referred to above.
Why "living in Switzerland" is the key condition
Several exceptions depend on the buyer being domiciled in Switzerland. That is why timing matters. An employee who is still abroad is, for Lex Koller purposes, a person abroad. The same employee, once registered and settled, may fall under an exception.
Do not treat a signed employment contract or a permit application as the same thing as being resident. The canton looks at the facts at the time of purchase. Ask the specialist how the relevant canton treats the date of arrival.
Main residence versus other property
The third-country exception covers the buyer's own main residence. It does not cover an investment flat, a second home or a property bought to let. Those purchases fall back on the general rule, which means a cantonal authorisation, if it can be granted at all. The canton decides.
Policy owners should note the same point. A relocation policy that offers a "home purchase allowance" should say which kind of property it supports and for which nationalities.
A sensible order of steps
- Fix the assignment type. Decide whether the transfer is short or long term. A short stay rarely justifies a purchase, and renting in Switzerland is usually the first step.
- Identify the employee's category. Note nationality, permit type and expected permit changes.
- Check the property type. Main residence, commercial premises, holiday home or investment each follow different rules.
- Ask the canton early. Rules are applied cantonally. A specialist can ask the competent office before the employee signs anything.
- Complete arrival formalities. These affect the "living in Switzerland" question and your duty of care (see below).
- Only then negotiate the purchase. Make any contract conditional on the authorisation where one is needed.
Arrival formalities that sit next to a purchase
Two obligations apply to anyone who takes up residence, owner or tenant.
- Register with the commune. The usual deadline is 14 days after arrival. On site, your employee brings an identity document, the residence or work permit and proof of health insurance. The deadline can vary by commune or canton, so confirm it locally (ch.ch).
- Take out basic health insurance. Anyone living in Switzerland must be insured no later than three months after taking up residence. If that deadline is met, cover is retroactive to the date of arrival and premiums are due from then. If it is missed, cover starts at affiliation, a premium surcharge may apply for an unexcused delay, and the canton may assign an insurer (FOPH).
Neither step replaces the Lex Koller check. Both belong in the same checklist.
Documents to prepare from abroad
- Passport and, where held, the current residence permit
- Employment contract or assignment letter
- Proof of the employee's current address abroad
- Family details if a spouse or children will co-own or live in the property
- A written description of the intended use (main residence, business, other)
- Documents about the property that the seller or the agent provides
The canton and the notary decide what else they need. Ask them early, because requests differ.
Typical pitfalls for HR and mobility teams
- Assuming a work permit equals the right to buy. It does not.
- Promising a purchase in a mobility offer. The authorities decide, not the employer or the intermediary.
- Ignoring the property type. A buyer who qualifies for a main residence may not qualify for a second property.
- Starting too late. An authorisation, where needed, is a condition of the sale. Plan for it in the timeline.
- Forgetting the exit. Leaving Switzerland later can change the buyer's status. Ask the specialist what the rules say if your employee moves away.
- Mixing up buying and renting rules. Our pages on temporary and furnished housing and the glossary of Swiss relocation terms help separate the two.
Where the specialist helps
This site does not buy, sell or advise on property. It connects you with relocation companies in Switzerland. Depending on the request, we put you in touch with the one that fits the need. A specialist can review the permit category, the property type and the canton, and can explain the next steps. The home search service, the immigration support service and the wider relocation services in Switzerland describe what such providers typically cover. The request at the foot of the page starts the referral.
Frequently asked questions
Can a foreigner buy property in Switzerland?
Yes, subject to Lex Koller. The rules depend on nationality, permit, residence and the type of property. Some buyers need a cantonal authorisation and others do not.
What is Lex Koller?
It is the common name of the federal law on the acquisition of real estate by persons abroad. It requires an authorisation from the canton for people who live abroad. The FOJ is the federal supervisory authority.
Does a permit C holder face restrictions?
No. A permit C holder, from the EU/EFTA or from a third country, is treated like a Swiss buyer.
Can an EU/EFTA citizen buy freely?
An EU/EFTA national who lives in Switzerland may buy without restriction. An EU/EFTA national who lives abroad is a person abroad for this purpose.
Can a third-country national buy a home?
A third-country national may buy their own main residence without authorisation. Other property generally needs a cantonal authorisation, if one can be granted.
What counts as a main residence?
It is the home where the buyer actually lives. The canton applies its own criteria, so a specialist should confirm how the relevant office reads the term.
Can my employee buy a holiday home?
This is outside the main residence exception. The canton decides, and the outcome depends on the buyer and the property. A specialist reviews the case.
Can my employee buy an investment property?
Investment property is not covered by the main residence exception. Ask a specialist before any commitment is made.
Can my employee buy commercial premises?
Premises for lasting commercial use are open to all buyers, whatever the nationality. The use must be genuine and lasting.
Does being employed in Switzerland remove the restriction?
Not by itself. Employment affects the permit, while Lex Koller looks at nationality, residence and property type.
When does the restriction stop applying?
It stops when the buyer falls under an exception, for example by holding a permit C or, for an EU/EFTA national, by living in Switzerland. The canton confirms the position.
Who grants the authorisation?
The cantonal authority. The FOJ supervises the system at federal level, but the application goes to the canton.
Does every canton apply the law in the same way?
The law is federal, but each canton runs its own procedure. Practice and timing can differ, so ask the relevant office early.
Should the purchase wait until the employee has arrived?
Often the exceptions rely on residence in Switzerland, so timing matters. The specialist can say how the canton treats the arrival date.
Is a work permit enough to buy?
No. A work permit covers living and working in Switzerland. Buying property follows its own rules.
What happens if an authorisation is needed and is refused?
The sale cannot go ahead on those terms. This is why a purchase contract should be conditional on the authorisation.
Do EU/EFTA and third-country nationals follow the same immigration rules?
No. Switzerland applies two regimes. EU/EFTA citizens come under the free movement agreement and others under the general foreign nationals law (SEM).
Do we still need to register with the commune?
Yes. The usual deadline is 14 days after arrival, and it can vary by commune or canton. Your employee brings an identity document, a permit and proof of health insurance (ch.ch).
When must health insurance start?
Basic cover must be taken out no later than three months after taking up residence. If the deadline is met, cover is retroactive to the date of arrival (FOPH).
Can an employer pay for the property?
Whether a policy supports a purchase is a policy decision. Lex Koller still applies to the buyer, whoever finances the purchase. Tax and legal treatment need specialist review.
Is renting a better first step?
For many assignments, yes. It leaves time to settle and to clarify status. See renting in Switzerland for the basics.
Can this site arrange the purchase?
No. We connect you with relocation companies in Switzerland. The request at the foot of the page starts that referral.
Where can we check the official position?
The cantonal guidance and the FOJ are the official sources. They are listed below.