Who is considered a non-EU/EFTA citizen under the new law?

According to the source, non-EU/EFTA citizens include all individuals who are not members of the European Union or the European Free Trade Association (EFTA). This encompasses, for example, Italian citizens only if they reside in Italy and are not EU citizens, as well as citizens of countries such as the United Kingdom, the United States, Canada, Australia, and others. The new legislation applies regardless of whether the citizen resides in Italy or elsewhere.

What happens if I purchase a property in Ticino before the new law comes into force but sell it after its approval?

The source does not specify whether the new law will have retroactive effects. However, based on Swiss legislative practice, rules governing the purchase of real estate by foreign nationals are typically not retroactive. This means that properties acquired before the new law enters into force may be exempt from restrictions, but you will still need to comply with the regulations in force at the time of sale. It is advisable to consult a notary or the Federal Office of Justice to verify your specific case.

How can I determine if my commercial property falls under the new restrictions?

The source specifies that the new law prohibits non-EU/EFTA citizens from purchasing commercial properties for rental or investment purposes. If you are acquiring a commercial property to use directly for your business activities (e.g., an office or a shop), you are not subject to restrictions. However, if you intend to rent it out to third parties or use it as an investment, you must verify with the Ticino cantonal land registry office whether your situation falls under the new rules.

What are the penalties for violating the new rules?

The source does not specify the penalties, but under current law (LAFE), violations of regulations on real estate purchases by foreigners may result in the annulment of the transaction, administrative fines, and, in severe cases, criminal proceedings. It is strongly advised to strictly adhere to the new procedures to avoid legal consequences.

Where can I find the form to apply for federal authorization?

The form for applying for federal authorization has not yet been published in the source. However, once the new law is approved, it will be available on the website of the Federal Office of Justice (DFGP) and the Ticino cantonal land registry office. We recommend monitoring these sites to download the necessary documentation as soon as it is published.

Bern limits property purchases: what changes for Ticino cross-border workers

By Laura Bianchi (editorial byline of the newsroom, AI-generated text) · Published on 15 April 2026 · Updated on 19 October 2026

Bellinzona's Castel Grande at night with a Swiss road sign indicating federal authorization required for foreigners to buy real estate

The Federal Council has launched a consultation until 15 July 2026 to extend the federal permit requirement for purchasing residential and commercial real estate by non-EU/EFTA citizens.

Context

TL;DR

Switzerland to restrict foreign property purchases from 2027
Non-EU/EFTA citizens need federal approval for property buys
Holiday homes and commercial property purchases banned for foreigners
Public consultation ends July 15, 2026

Key facts

Legislation: LAFE (Lex Koller) amendment
Public consultation: April 15, 2026 to July 15, 2026
Restricted properties: Primary residences, holiday homes, commercial properties
Authorization required: Non-EU/EFTA citizens for all property types
Sale deadline: Within 2 years if moving abroad
Commercial property rule: Only for direct business use, no rentals
Stock market ban: Foreigners can't buy shares in residential real estate companies
Impacted region: Ticino, due to high demand and rising prices

On April 15, 2026, the Swiss Federal Council decided to launch a public consultation until July 15, 2026, to amend the law on the acquisition of real estate by persons abroad (LAFE, also known as the Lex Koller). The goal is to restrict the purchase of properties by citizens from third countries, meaning those not belonging to the European Union or the European Free Trade Association (EFTA).

Measures for residential properties

The new legislation introduces stricter restrictions on the purchase of primary residences by foreigners. Citizens from third countries will need to obtain prior federal authorization. In case of moving abroad, the property must be sold within two years. Additionally, the purchase of holiday homes and serviced apartment units by foreigners will be banned, along with a reduction in the annual quotas allocated to the cantons.

Currently, if a German citizen sells a holiday apartment to a French buyer, the canton’s quota remains unaffected. The new law aims to close this loophole.

New rules for commercial properties

The Federal Council is also proposing stricter regulations for commercial real estate. Citizens from third countries will no longer be allowed to purchase properties for rental or investment purposes; they will only be permitted to buy properties for direct use in their business activities. According to the government, this measure aims to curb speculative transactions that exacerbate Switzerland’s housing shortage.

Ban on stock market investments in residential real estate

Another key aspect of the revision is the introduction of a general ban on foreigners purchasing shares in residential real estate companies listed on the stock exchange, as well as shares in real estate funds and SICAVs (open-ended investment companies) regularly traded on the market. The rationale is to prevent foreign capital from being directed into purely financial real estate investments, thereby removing properties from the residential market.

Context: the law in brief

The LAFE, or Lex Koller, has regulated the purchase of real estate in Switzerland by foreigners for decades. The amendments proposed by the Federal Council come at a time of intense pressure on the Ticino real estate market, where demand far exceeds supply and prices continue to rise. The new rules also align with the measures accompanying the June vote on the UDC’s popular initiative 'No to a Switzerland of 10 million!', which attributes the housing crisis to uncontrolled immigration.

Deadlines and next steps

The public consultation will conclude on July 15, 2026. Following this, the Federal Council will evaluate the feedback and present the final draft legislation to Parliament. If approved, the new rules could come into force as early as 2027, with immediate effects on all ongoing transactions.

Impact on Ticino cross-border workers: what to know now

Cross-border workers residing in Italy but purchasing properties in Ticino fall under the scope of these new rules. In particular, if they are citizens from non-EU/EFTA countries, they will need to check whether prior authorization is required and comply with the new restrictions on residential and commercial properties. For those who already own properties, the legislation does not apply retroactively, but it will be crucial to monitor the law’s evolution for any future obligations.

Operational details

Before vs after: what concretely changes for frontier workers

The revision of the LAFE introduces a radical break with respect to the current regime, which already provides for limitations for foreigners in the purchase of real estate in Switzerland. Here are the main changes that will directly impact Ticino border workers:

1. Obligation to authorize the purchase of homes

Currently, EU/EFTA citizens can purchase real estate in Ticino without federal authorization, while non-EU citizens must already apply for it. The new law extends the obligation to all third-country nationals, including for the purchase of a first home. This means that an Italian border worker residing in Lombardy, but a citizen of a non-EU country, must obtain an authorization before proceeding with the purchase of a home in Ticino.

2. Assignment within two years in case of transfer

If the foreign owner decides to leave Switzerland, the property must be sold within two years. This rule aims to prevent properties purchased by foreigners from remaining empty or being used only occasionally, thus contributing to housing shortages.

3. Stop buying real estate for investment purposes

For border crossers who intend to purchase commercial or residential property for speculative purposes, the new law introduces an explicit prohibition. It will be possible to purchase real estate only for personal use or for direct business activity. For example, a frontier entrepreneur who wants to open an office in Ticino will be able to buy a commercial premises, but will no longer be able to buy an apartment to rent to third parties.

4. Reduction of quotas for holiday homes

Border workers who already own a holiday home in Ticino may have their transfer rights reduced to another foreigner. Current legislation allows sales between foreigners without affecting the cantonal quota. The new law reintroduces the obligation of authorization also in these cases, further limiting the circulation of properties of this type.

5. Ban on listed real estate investments

Border workers who invest in securities of real estate companies or listed funds will have to be careful: the new law prohibits the purchase of shares of SICAVs and real estate funds by foreigners. This could discourage some investment strategies that, until now, were also accessible to non-residents.

Comparison table: current regime vs new rules

Table 1: Appearance
Appearance	Current regime (2026)	New rules (2027)
Purchase of main residence	Obligation of authorisation for non-EU nationals only	Obligation of authorisation for all third-country nationals
Holiday home	Sale between foreigners without affecting the quota	Obligation to authorize the sale between foreigners
Commercial properties for investment	Possible purchase by lease	Purchase by investment prohibited
Listed real estate securities	Possible purchase	Total prohibition for foreigners
Assignment in case of transfer	No expiry	Sale within 2 years

Practical scenarios for border workers

Case 1: Italian non-EU border worker who wants to buy a house in Lugano Today: You can buy without authorisation if you are an EU citizen, otherwise you need to apply for it. After the new law: You will need to obtain prior federal authorization, even if you are an EU citizen. If you move abroad, you will need to sell the property within two years.

Case 2: Frontier entrepreneur who wants to open a business in Mendrisio Today: You can buy a business premises freely. After the new law: You can only buy if you use it directly for your business. You will no longer be able to purchase properties to rent to third parties.

Case 3: Border worker who owns a holiday home in Locarno Today: You can sell it to another foreigner without problems. After the new law: You will need to apply for a federal authorization for the sale, with reduced quota risk.

Reactions and perspectives

The Federal Council justifies these measures with the need to tackle the housing shortage in Switzerland, a problem that also involves Ticino, where property prices are among the highest in Europe. However, the LAFE review is not without criticism. Some observers fear that the new restrictions could reduce the liquidity of the real estate market, making it more difficult to sell properties already owned by foreigners. In addition, the two-year rule for the transfer in the event of a transfer could discourage the purchase of property by border workers living in Italy but working in Ticino, with possible repercussions on the border labour market.

For Ticino border workers, the priority now is to inform themselves promptly about the new procedures and check if their situations fall within the new restrictions. The public consultation will end in July 2026, but final decisions may only come in the following months.

Useful tools to maximize net

To reduce the gear loss, compare the CHF-EUR exchange options and the banks for cross-border workers.

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

What to do now: step-by-step guide for cross-border workers

If you are a cross-border worker residing in Italy and are considering purchasing a property in Ticino, or if you already own a property and want to understand how the new rules apply, follow this practical guide.

1. Check your citizenship and the property’s status

The first step is to verify your citizenship. If you are a non-EU/EFTA citizen, the new rules will directly affect you. If you are an EU/EFTA citizen, restrictions will be less severe but still apply to certain types of properties.

EU/EFTA citizens: You will still be able to purchase residential properties without prior authorization, but you must comply with the new rules on commercial properties and holiday homes.
Non-EU/EFTA citizens: You will need to obtain federal authorization to purchase any type of property, whether residential or commercial.

2. Apply for federal authorization (if required)

For non-EU/EFTA citizens, the authorization process is already in place, but the new rules will make it stricter. Here’s what you need to do:

Documentation: Passport, cross-border worker employment contract, proof of residence in Italy, property documentation (for future purchases).
Application form: To be submitted to the Federal Office of Justice (DFGP) via the Ticino Canton authorities.
Costs: The fees for authorization have not yet been specified in the source, but they are estimated to range between 500 and 1,500 CHF, depending on the complexity of the case.
Timeline: The process may take between 2 and 4 months, with possible delays if there is a high volume of applications during the transition period.

3. Plan for selling in case of relocation

If you are a non-EU/EFTA citizen and purchase a property in Ticino, remember that you must sell it within two years if you relocate abroad. This means:

📊 Assess your liquidity: Ensure you have sufficient funds to cover any sale costs or taxes.

💡 Monitor the market: If sale times lengthen, you may face additional expenses for property maintenance.

⚠️ Consult a notary: A professional can help you plan the sale to comply with the legal deadlines.

4. Avoid speculative purchases of commercial properties

If you are interested in commercial properties, the new law prohibits purchases for rental or investment purposes. You may only buy if:

The property will be used directly for your professional activities.
You have no intention of renting it out to third parties.

Violating this rule may result in administrative penalties and revocation of your authorization.

5. Keep track of legal developments

The public consultation will conclude on 15 July 2026. Until then, further details on procedures and exceptions may emerge. We recommend that you:

Follow updates on the Federal Council or DFGP websites.
Consult a legal expert specializing in Swiss real estate law.
Contact Ticino Canton offices for the latest information on authorization practices.

Key deadlines to remember

15 July 2026: End of the public consultation.
Late 2026/early 2027: Possible final approval of the law.
2027: Entry into force of the new rules (date not yet specified).

Useful tools for cross-border workers

To help with your planning, we suggest using these tools available on Frontaliere Ticino:

Ticino real estate cost calculator: To estimate purchase costs, taxes, and ancillary expenses.
Guide to legal requirements for cross-border workers: To understand which documents are needed for federal authorization.
Compare Ticino banks for mortgages: To evaluate the best financing conditions.

Helpful contacts

Federal Office of Justice (DFGP): For information on authorizations and the LAFE (Lex Acquisition Foreigners).
Ticino Canton Land Office: For local procedures and updates on quotas.
Ticino notary firms: For assistance in completing applications and managing transactions.

In summary: act now to avoid surprises

The new rules on property purchases by foreigners will likely come into force in 2027, but the first effects will be felt during the public consultation. If you are a cross-border worker interested in buying a property in Ticino, don’t wait: find out about the procedures now, check your situation, and if necessary, submit your authorization application before the rules become stricter. Caution is essential, especially in a real estate market as pressured as Ticino’s.

Source: tio.ch

Frequently Asked Questions

Who is considered a non-EU/EFTA citizen under the new law?: According to the source, non-EU/EFTA citizens include all individuals who are not members of the European Union or the European Free Trade Association (EFTA). This encompasses, for example, Italian citizens only if they reside in Italy and are not EU citizens, as well as citizens of countries such as the United Kingdom, the United States, Canada, Australia, and others. The new legislation applies regardless of whether the citizen resides in Italy or elsewhere.
What happens if I purchase a property in Ticino before the new law comes into force but sell it after its approval?: The source does not specify whether the new law will have retroactive effects. However, based on Swiss legislative practice, rules governing the purchase of real estate by foreign nationals are typically not retroactive. This means that properties acquired before the new law enters into force may be exempt from restrictions, but you will still need to comply with the regulations in force at the time of sale. It is advisable to consult a notary or the Federal Office of Justice to verify your specific case.
How can I determine if my commercial property falls under the new restrictions?: The source specifies that the new law prohibits non-EU/EFTA citizens from purchasing commercial properties for rental or investment purposes. If you are acquiring a commercial property to use directly for your business activities (e.g., an office or a shop), you are not subject to restrictions. However, if you intend to rent it out to third parties or use it as an investment, you must verify with the Ticino cantonal land registry office whether your situation falls under the new rules.
What are the penalties for violating the new rules?: The source does not specify the penalties, but under current law (LAFE), violations of regulations on real estate purchases by foreigners may result in the annulment of the transaction, administrative fines, and, in severe cases, criminal proceedings. It is strongly advised to strictly adhere to the new procedures to avoid legal consequences.
Where can I find the form to apply for federal authorization?: The form for applying for federal authorization has not yet been published in the source. However, once the new law is approved, it will be available on the website of the Federal Office of Justice (DFGP) and the Ticino cantonal land registry office. We recommend monitoring these sites to download the necessary documentation as soon as it is published.