Lex Koller Explained · Foreign Property Buying in Switzerland

Quick answer

Yes, foreigners can buy property in Switzerland, but Lex Koller restricts non-residents. Without a Swiss residence permit you need authorisation, can buy only a holiday home in a designated tourist zone within the cantonal quota, and in most cases cannot buy a detached chalet. EU/EFTA B-permit holders can buy their primary residence, and C-permit holders buy freely, like Swiss citizens.

Yes, foreigners can buy property in Switzerland, but with significant restrictions. The Lex Koller (formally the Federal Act on the Acquisition of Real Estate by Persons Abroad, ANAG) controls when and how non-Swiss nationals can purchase residential property. Whether you need authorisation depends on your nationality, your residence permit, and the type of property you want to buy.

This is the most important piece of legislation for any international buyer considering property in Gstaad or anywhere else in Switzerland. We explain it to nearly every new client.

Who the Lex Koller Applies To

The law draws sharp lines based on nationality and residence status:

Buyers Who Do NOT Need Lex Koller Authorisation

Swiss nationals buying anywhere in Switzerland
EU/EFTA nationals with a B permit (temporary residence) buying a primary residence they will live in
EU/EFTA nationals with a C permit (permanent residence) buying any property, treated identically to Swiss citizens
Third-country nationals with a C permit buying any property, treated identically to Swiss citizens
Any buyer purchasing commercial real estate for genuine business use (not pure investment)

Buyers Who DO Need Lex Koller Authorisation

Non-resident foreigners (no Swiss residence permit) buying any residential property
EU/EFTA B-permit holders buying a second home or investment property (not their primary residence)
Third-country B-permit holders buying anything other than a primary residence they will live in
Foreign-controlled companies buying residential real estate

The Practical Impact for Gstaad Buyers

Most international buyers interested in Gstaad fall into one of two categories:

Non-residents wanting a holiday home: You need Lex Koller authorisation. You are limited to buying in designated tourist zones, subject to cantonal quotas, and restricted in what type of property you can buy (no detached chalets in most cases).
Residents with a B or C permit: If you have a C permit, you can buy freely. If you have a B permit, you can buy a primary residence without authorisation. A second home still requires authorisation.

The Quota System

Switzerland operates a national quota of approximately 1,500 authorisations per year for vacation-home purchases by foreigners. This quota is divided among the cantons. Each canton distributes its share to qualifying municipalities, and each municipality manages its own allocation.

Canton Bern, where Gstaad (Saanen municipality) is located, receives a portion of this national quota. The cantonal authority in Bern reviews and approves applications.

Key points about the quota:

The quota has remained largely unchanged for years and is significantly oversubscribed
Authorisations are granted per property, not per buyer
Processing time varies but typically takes 4-8 weeks
An authorisation lapses if the purchase is not completed within a set period
There is no guarantee of receiving an authorisation, even if you meet all criteria

What Foreigners Cannot Buy

The restrictions go beyond just needing authorisation. Even with authorisation, non-resident foreign buyers face specific prohibitions:

Detached Chalets

In most of Switzerland, including Gstaad, non-resident foreigners cannot buy freestanding (detached) chalets. This is the single most impactful restriction for buyers looking in the Saanenland, where much of the prime stock is detached.

The alternatives: apartments, duplex apartments, and attached chalets (part of a multi-unit building) are generally available to foreign buyers with the proper authorisation.

Size Limits

Authorised purchases for vacation homes are typically capped at a net living area of 200 m² and a plot size of 1,000 m². These limits can vary by canton and may be waived in specific circumstances.

Foreign Ownership Caps

In apartment buildings, a maximum of 50% of units can be owned by foreign-controlled buyers in many cantons. This means not every available apartment in a desirable building will be purchasable by a non-resident foreigner.

Resale Timing

In several cantons (notably Valais), foreign buyers must hold a property for a minimum period before reselling. Canton Bern is more flexible on this point, with no mandatory holding period for resale. This is one advantage of buying in Gstaad over Verbier.

Exemptions and Workarounds

There are legitimate paths around some restrictions:

Obtain a C Permit

With a C permit (permanent residence), you are treated identically to a Swiss citizen. For EU/EFTA nationals, this typically becomes available after 5 years of continuous residence (or 3 years for spouses of Swiss nationals). For third-country nationals, the timeline is usually 10 years.

Buy as a Primary Residence with a B Permit

EU/EFTA B-permit holders can buy a primary residence without Lex Koller authorisation. This means moving to Gstaad full-time opens up the full market, including detached chalets.

Purchase Through a Swiss-Resident Spouse

If one spouse holds a C permit or is Swiss, the couple can buy without Lex Koller restrictions, as the property is acquired by or jointly with a person not subject to the law.

Commercial Property

Genuine commercial real estate, such as a hotel or business premises, falls outside Lex Koller entirely. However, the purchase must be for genuine commercial use, not a residential property disguised as commercial.

Proposed Tightening (2026)

The Federal Council has proposed significant changes to Lex Koller, with a consultation period that closed in July 2026. The key proposals include:

Extending restrictions to third-country nationals buying primary residences: Currently, third-country B-permit holders can buy a primary residence. The proposal would require authorisation even for this.
Mandatory sale requirement: Buyers from outside the EU/EFTA who leave Switzerland would need to sell their property within two years.
Commercial property restrictions: Pure investment purchases of commercial property by foreigners would require authorisation.
Listed real estate companies: Shares in listed real estate companies could be brought under the authorisation regime.

These proposals are not yet law. They require parliamentary approval and could be modified or rejected. We are monitoring the process and will update this page as developments occur. For the current status, check the Federal Council's official communications.

If you are considering a purchase, the current rules still apply. However, it is worth understanding that the direction of travel is toward tighter restrictions, not looser ones.

The Lex Koller Process in Practice

For a non-resident foreigner buying a holiday home in Gstaad, the practical steps are:

Find a property that qualifies (apartment or attached property, within size limits)
Check the foreign ownership cap in the building (your notary or advisor does this)
Submit a Lex Koller application to the canton Bern authorisation authority, through the notary
Wait for approval (typically 4-8 weeks)
Complete the purchase at the notary once authorised

The application requires documentation of the buyer's identity, financial resources, and the property details. The notary handles the paperwork, but your advisor should be involved in structuring the application correctly.

We have guided many international clients through this process. The critical step is choosing the right property in the first place: one that qualifies under Lex Koller, sits within an available quota, and meets your needs. A poor choice of property can mean a rejected application and months of lost time.

Lex Koller and Gstaad Specifically

Gstaad's market has some specific Lex Koller characteristics:

High demand, limited quota: The Saanen municipality's quota allocation is small relative to demand, so timing matters
Detached chalet restriction bites hard: Much of Gstaad's most desirable stock is detached, and off-limits to non-resident foreigners
Apartment stock is competitive: Because apartments are accessible to foreign buyers, competition for the best units is intense
Off-market advantage: Properties sold through private networks may be more likely to have quota availability, because the transaction can be timed to the quota cycle

Frequently Asked Questions

Can I buy a chalet in Gstaad as a non-resident foreigner? You can buy an apartment or attached chalet with Lex Koller authorisation. You cannot buy a detached (freestanding) chalet as a non-resident. To access detached chalets, you would need to become a Swiss resident (B or C permit).

How long does Lex Koller authorisation take? Typically 4-8 weeks from application to decision, though it can take longer if the quota is fully allocated for the current period.

Is Lex Koller being abolished? No. The current direction is toward tightening, not loosening. The Federal Council's 2026 proposals would extend restrictions further. Abolition is not under consideration.

Does Lex Koller apply to all Swiss cantons equally? The federal law applies nationally, but cantons administer the quota and can impose additional conditions. Canton Bern's rules differ from Valais (where Verbier is) in several respects, notably that Bern does not impose a mandatory holding period for resale.

What happens if I buy without authorisation? The transaction would be void. The notary is responsible for ensuring Lex Koller compliance, so in practice this should not happen. An unauthorised purchase can be unwound by the authorities.

Can I use a Swiss company to buy property and avoid Lex Koller? No. Companies controlled by persons subject to Lex Koller are themselves subject to the law. This is specifically designed to prevent circumvention.

For a confidential conversation about your search or sale, contact The Gstaad Collection.

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