Switzerland: What Lex Koller Tightening Means for Investors

In brief

In response to the SVP initiative “No 10-million Switzerland”, the Federal Council is proposing various tightenings of the Lex Koller and has opened a consultation process until 15 July 2026. In future, persons abroad will be able to acquire real estate serving as permanent establishments without authorization only for their own use; renting out such premises is no longer permitted. In addition, the indirect acquisition of real estate shall be restricted much more severely: the acquisition of listed shares in real estate companies as well as the acquisition of units in real estate funds within the scope of Lex Koller persons abroad would de facto be banned. Under threat of criminal sanctions, exchange participants (see definition further below) would be required, before executing any order, to ensure that the acquirer of such shares or fund units is not a person abroad.

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