3 June 2026 | Publication
Lex Koller & Holiday Homes - Overview of
current legislation, jurisprudential
developments concerning trusts, and
possible reforms of Lex Koller
3 June 2026 | Publication
Lex Koller & Holiday Homes - Overview of
current legislation, jurisprudential
developments concerning trusts, and
possible reforms of Lex Koller
Ticino Management, Edition June/July 2026 Journal
This article provides an overview of the Swiss Federal Act on the Acquisition of Real Estate by Persons Abroad (LAFE, also known as Lex Koller), with a specific focus on the rules for foreigners wishing to acquire vacation homes in Switzerland. Generally, foreigners not residing in Switzerland are prohibited from purchasing residential property, except under limited conditions—most notably, the purchase of vacation homes in certain cantons and designated tourist areas, subject to strict size and ownership restrictions. Each canton can set its own rules, and only specific regions allow such acquisitions, with annual quotas imposed by the federal government.
The article also highlights additional limitations, such as a five-year ban on resale and the prohibition against indirect ownership via entities like trusts or companies. Recent Swiss Federal Court jurisprudence has confirmed that vacation homes acquired under LAFE cannot be transferred to a trust, ensuring that only direct ownership by individuals is permitted. Furthermore, buyers must also consider other relevant laws, such as the Federal Act on Second Homes (LASec) and local municipal regulations.
This article provides an overview of the Swiss Federal Act on the Acquisition of Real Estate by Persons Abroad (LAFE, also known as Lex Koller), with a specific focus on the rules for foreigners wishing to acquire vacation homes in Switzerland. Generally, foreigners not residing in Switzerland are prohibited from purchasing residential property, except under limited conditions—most notably, the purchase of vacation homes in certain cantons and designated tourist areas, subject to strict size and ownership restrictions. Each canton can set its own rules, and only specific regions allow such acquisitions, with annual quotas imposed by the federal government.
The article also highlights additional limitations, such as a five-year ban on resale and the prohibition against indirect ownership via entities like trusts or companies. Recent Swiss Federal Court jurisprudence has confirmed that vacation homes acquired under LAFE cannot be transferred to a trust, ensuring that only direct ownership by individuals is permitted. Furthermore, buyers must also consider other relevant laws, such as the Federal Act on Second Homes (LASec) and local municipal regulations.
