New restrictions for foreign real estate investors in Switzerland
The Federal Council proposes amendments to the Lex Koller to limit property purchases by non-resident foreigners
Contesto
The Swiss Federal Council has decided to review the historic law that regulates the purchase of real estate by non-resident foreigners, known as Lex Koller. The revision, currently in the consultation phase until October 15, 2023, provides for a significant tightening of existing regulations. Among the proposed measures are the ban on speculative investments, stricter rules on vacation homes, and the obligation to sell for those leaving the country. ## Concrete Changes The changes proposed by the Government are far-reaching. First, the project aims to ban the purchase of commercial real estate purely as an investment. People residing abroad will only be able to proceed with the purchase if they use the property directly for their economic activity. The sale aimed at leasing would, in fact, be prohibited again. > "This measure aims to prevent real estate speculation and to ensure that commercial properties are used for productive purposes," declared the Federal Council. An even stricter tightening is planned for indirect investments. The purchase of shares in listed real estate companies and participations in real estate funds and SICAVs would again be subject to authorization, effectively creating a generalized ban. For example, a foreign investor who currently owns shares in a real estate company listed in Zurich will need to obtain authorization to maintain such investments. ### Operational Checklist for Investors - Residence Verification: Ensure you are residents in Switzerland for at least 183 days a year. - Purchase Authorization: Request authorization for the purchase of commercial real estate if not resident. - Direct Use: Demonstrate that the commercial property will be used directly for economic activity. - Mandatory Resale: Plan to resell the property wi...
Dettagli operativi
Holiday homes A particularly sensitive chapter concerns holiday homes. The Federal Council, with the amendment of January 1, 2024, proposes to halve the annual national quota of authorizations for purchase, reducing it from 1,500 to 750 units, and to reintroduce the counting of property transfers between people residing abroad within these quotas. According to the Government's assessments, this measure would help limit the proliferation of second homes and free up housing in regions under greater pressure, notably in tourist areas. For example, in Ticino, municipalities such as Ascona, Locarno, and Lugano have seen a significant increase in second homes, with a direct impact on the local real estate market. The new regulation could reduce the number of annual transactions from around 300 to 150 in the canton, directly influencing demand and property prices. ## Implications for cross-border workers The new restrictions could have a significant impact on cross-border workers who wish to purchase a property in Switzerland. In particular, the reduction in the quota for holiday homes could make it more difficult to buy a second home in tourist resorts. Furthermore, the obligation to sell the property for those leaving the country could deter some cross-border workers from investing in real estate in Switzerland. 📊 Practical scenario: An Italian cross-border worker who works in Lugano and wants to buy a holiday home in Locarno will now have to compete with a reduced quota, increasing the difficulty of finding an available property. Moreover, if they decide to leave Switzerland, they will be obliged to sell the property within a maximum period of two years, as established by the new regulation. 💡 Operational checklist: - Check if the desired property falls within the r...
Punti chiave
What to Do Now If you are considering buying a property in Switzerland, it is crucial to act promptly. New regulations, expected to come into effect at the beginning of 2025, will introduce stricter restrictions for foreign investors. For example, in Lugano, the average price of a residential property is around 7,500 CHF per square meter, but with the new rules, you may need to obtain prior authorization, especially for non-resident buyers. It is advisable to start the purchasing process by the end of 2024 to avoid complications. ### Operational Checklist: - Residence Verification: Ensure you have a valid residence permit or are compliant with the regulations for cross-border workers. - Legal Consultation: Consult a lawyer specializing in Swiss real estate law to understand the implications of the new regulations. - Financing: Obtain pre-approval for a mortgage, keeping in mind that Swiss banks typically require a down payment of 20-30% of the property value. - Documentation: Prepare all necessary documents, including income and residence certificates. ## Useful Tools For a more accurate assessment, you can use the salary calculator to estimate your net income in Switzerland. For example, a gross salary of 100,000 CHF in Ticino translates to a net income of approximately 78,000 CHF, considering cantonal and federal taxes. Additionally, the guide to buying property in Switzerland provides details on the purchasing process, including registration and notary costs, which vary between 0.5% and 2.5% of the property value. ### Practical Comparisons: - Scenario 1: An Italian cross-border worker buying an apartment in Bellinzona (average price 6,800 CHF/sqm) will have to pay approximately 15,000 CHF in registration taxes. - Scenario 2: A non-resident buyer purchasing a vil...
Punti chiave
[{"q":"What are the main proposed changes to the Lex Koller?","a":"The main proposed changes to the Lex Koller include a ban on speculative investments, stricter rules on vacation homes, and an obligation to sell for those leaving the country. Additionally, there is a planned tightening of rules for indirect investments and for the purchase of principal residences by citizens of third countries."},{"q":"How will vacation homes be affected?","a":"Vacation homes will be affected by the proposal to halve the annual national quota of purchase authorizations, reducing it from 1,500 to 750 units, and to reintroduce the counting of property transfers between people residing abroad within these quotas."},{"q":"What happens if you already own a property in Switzerland?","a":"If you already own a property in Switzerland, it is important to monitor the evolution of the situation and consult a legal expert to understand how the new rules might affect your specific situation. In particular, it is crucial to understand whether the property in question is considered a principal residence or a vacation home, and if there are any obligations to sell."}]
Frequently Asked Questions
- What are the main proposed changes to the Lex Koller?
- The main proposed changes to the Lex Koller include a ban on speculative investments, stricter rules on vacation homes, and an obligation to sell for those leaving the country. Additionally, there is a planned tightening of rules for indirect investments and for the purchase of principal residences by citizens of third countries.
- How will vacation homes be affected?
- Vacation homes will be affected by the proposal to halve the annual national quota of purchase authorizations, reducing it from 1,500 to 750 units, and to reintroduce the counting of property transfers between people residing abroad within these quotas.
- What happens if you already own a property in Switzerland?
- If you already own a property in Switzerland, it is important to monitor the evolution of the situation and consult a legal expert to understand how the new rules might affect your specific situation. In particular, it is crucial to understand whether the property in question is considered a principal residence or a vacation home, and if there are any obligations to sell.