Swiss Alternative Investment Forum

Would you like to purchase real estate in Switzerland for residential or investment purposes? Since Switzerland restricts the acquisition of real estate by persons abroad, an acquisition must be carefully examined and prepared.

1. When is the acquisition of real estate subject to authorisation?

The “Lex Koller” or the “Federal Act on the Acquisition of Real Estate by Persons Abroad” applies throughout Switzerland. If the following conditions are met, the acquisition of real estate is subject to authorisation by the cantonal authorities:

• Purchaser is a “person abroad”
• Real Estate requires a permit
• Transaction is an acquisition of real estate

All other real estate transactions do not require authorisation and can be carried out without the restrictions of the Lex Koller.

2. Am I considered a “person abroad”?

A “person abroad” is defined as

• Nationals of foreign states resident abroad
• Nationals of EU/EFTA member states residing in Switzerland without a B residence permit, C settlement permit or L short-term residence permit.
• Nationals of other foreign countries resident in Switzerland without a C residence permit.

Conversely, this means that the following groups of persons are free to acquire real estate in Switzerland without restrictions:

• Swiss citizens/double citizens resident in Switzerland or abroad
• Nationals of EU/EFTA member states with legal and actual residence in Switzerland (B residence permit, C settlement permit or L short-term residence permit)

Nationals of other foreign countries with a C permanent residence permit and actual residence in Switzerland.

3. Can I purchase the property through my stock company instead?

Legal entities are also subject to the Lex Koller and thus to the permit requirement. A legal entity can only acquire a property without a permit if the company has its registered office in Switzerland and is directly or indirectly controlled by natural persons who are not persons abroad.

4. What is an “acquisition of real estate subject to authorisation”?

The acquisition of single-family or multi-family houses, owner-occupied apartments and building land intended for such buildings by persons abroad is subject to the authorisation requirement.

The acquisition is not only the transfer of the property in the land register, but also any legal transaction that gives a person abroad the actual power of disposal over a property subject to authorisation. For example, foreign financing or the acquisition of a usufruct can also trigger the authorisation requirement.

5. Are there exceptions to the authorisation requirement?

There are some important exceptions and possibilities for a person abroad to acquire real estate in Switzerland.

a) Main residence
The acquisition of a main dwelling is exempt from the permit requirement, provided that this dwelling serves as the legal residence of the person abroad and is actually occupied. This is closely dependent on the granting of a residence or settlement permit.

b) Second home
The acquisition of a second home by cross-border commuters in the region of the place of work is also exempt from the permit requirement.
The acquisition of a secondary residence by persons abroad who maintain an exceptionally close relationship with the place of the secondary residence that is worthy of protection is eligible for a permit.

c) Holiday homes
Some cantons allow the acquisition of holiday homes in certain communes in tourist areas: Appenzell Ausserrhoden, Bern, Fribourg, Glarus, Grisons, Jura, Lucerne, Neuchâtel, Nid- and Obwalden, St. Gallen, Schaffhausen, Schwyz, Ticino, Uri, Vaud and Valais.

d) Commercial real estate and business premises
The acquisition of real estate is exempt from authorisation if it serves as a permanent place of business of a commercial or manufacturing trade, another trade conducted in a commercial manner, a craft enterprise or a liberal profession. Examples include factory buildings, office buildings, hotels, restaurants, medical practices, etc. Flats in commercial real estate and business premises can only be acquired without a permit in exceptional cases, for example if they are necessary for the company’s operations.

e) Swiss real estate companies and investment funds
Indirect investments in real estate, such as the acquisition of shares in real estate investment funds and the participation in a real estate company, are exempt from authorisation if the funds are publicly traded or the company is listed on a Swiss stock exchange.

6. What happens if I do not comply with the authorisation requirement?

If you cannot rule out the possibility that the acquisition of the real estate is a transaction requiring authorisation, you must apply to the competent cantonal authority for authorisation or for a declaration that authorisation is not required. If no authorisation is available for a transaction requiring authorisation, the entry in the land register or the acquisition of ownership cannot be executed. Infringements of the provisions of the Lex Koller can have consequences under administrative law, civil law and criminal law.

LINDEMANNLAW advises private and business clients on all real estate related transactions including the analysis of the acquisition of real estate by persons abroad (“Lex Koller”) as well as on the change of residence/business domicile to Switzerland. Contact our lawyers, auditors, tax advisors or notaries – we look forward to hearing from you.

Switzerland has long been recognized as a highly attractive destination for real estate investment, particularly in the construction sector. With its stable economy, well-regulated building environment, and growing urbanization, the country – especially the Canton of Zurich – has witnessed a surge in property developments. However, obtaining a building permit in Zurich requires strict compliance with municipal and cantonal regulations. The legal framework governing building permits in Zurich is primarily derived from the Planning and Building Law (Planungs- und Baugesetz, PBG) and the Building Ordinance (Bauverfahrensverordnung, BVV).

What are the preliminary steps to obtain a building permit in Zurich?

To streamline the building permit process and avoid future legal disputes, it is advisable to:

1. Retain a lawyer with high degree of technical expertise at an early stage
   Engaging a lawyer with specialized expertise early in the process helps navigate complex regulations and procedural requirements, reducing the risk of delays or compliance issues. Legal professionals can also identify and mitigate potential disputes before they escalate, ensuring a smoother and more efficient process. Proactive legal guidance helps protect interests and prevent costly legal complications in the future.
2. Engage with the Local Building Authority
   It is advisable to consult the relevant municipal building authority early in the planning phase to obtain clear guidance on the applicable requirements and the necessary documentation for the permit application. The building authority can also provide insights into zoning laws, environmental regulations, and potential restrictions on the property.
3. Communicate with Adjacent Property Owners
   Proactively informing neighbors about planned construction projects helps mitigate objections, reduces the risk of formal complaints, and fosters a cooperative environment. Transparency in communication can prevent legal conflicts and speed up the approval process.
4. Submit Building Permit Applications Electronically
   Since April 1, 2024, all building permit applications must be submitted via the official eBaugesucheZH platform. This digitized system enhances transparency, facilitates document submission, and expedites processing times. Applicants should ensure that all required documents, including blueprints and environmental impact assessments, are uploaded correctly to avoid delays.

Which authorities need to be involved in the building permit process?

Depending on the project’s scale and location, additional authorities may be required to grant approvals before construction can commence. The most relevant approvals by authorities include among others:

​Environmental Protection Authority Approval
Large-scale projects, such as industrial developments, transportation infrastructure, or leisure facilities, must undergo an Environmental Impact Assessment (EIA) to ensure ecological sustainability. This assessment determines whether the project meets environmental protection standards.

Civil Engineering Office Approval
If a project involves heavy vehicle use that may impact road infrastructure, approval is required under Article 227 PBG in conjunction with Article 21 BVV. This ensures that roads and public transportation systems can accommodate increased traffic without excessive wear or safety risks.

What are the different types of construction procedures in Switzerland?

The PBG and BVV define three types of construction permit procedures in Switzerland, each depending on the nature and complexity of the project:

1. Ordinary Procedure (“Ordentliches Verfahren”)
   This is the default process for most construction projects, including new buildings and significant renovation work. The preliminary examination period is typically two months, extending to four months for larger developments (Articles 319-321 PBG). This process includes a comprehensive legal and technical assessment of the project.
2. Notification Procedure (“Anzeigeverfahren”)
   This expedited procedure applies to smaller construction projects that do not affect third-party interests. The processing time is approximately 30 days (Article 325 PBG in conjunction with Articles 13 et seqq. BVV). This applies mainly to minor modifications and interior renovations.
3. Reporting Procedure (“Meldeverfahren”)
   This process is reserved for specific installations such as solar energy systems, heat pumps, district heating connections, and electric vehicle charging stations. Applicants must notify the local building authority, and if no objections arise within 30 days, the project may proceed (Article 2 BVV). This facilitates the implementation of sustainable energy solutions.

How does the building permit process work from application to approval?

The building permit process involves several steps, ensuring compliance with municipal and cantonal regulations before approval is granted.

1. Preliminary Review (“Vorprüfung”)
   The municipal building authority examines the application for completeness. If any cantonal approvals are necessary, they will be requested at this stage. Applicants must ensure all required documents are included to prevent delays.
2. Setting Out (“Aussteckung”)
   The project site must be physically marked out before the public notice period begins. The markings must remain visible throughout the appeal period, ensuring transparency in the decision-making process. This helps third parties visualize the scope of the project before formal objections can be filed.
3. Public Announcement (“Veröffentlichung”)
   The municipality publishes the application in the cantonal official gazette and the municipality’s official publication. The documents are accessible for public review for 20 days, allowing third parties (e.g., neighbors) to file objections if necessary. If no objections are raised, the process moves to the next phase.
4. Building Permit (“Baubewilligung”)
   If all legal and procedural requirements are met, the municipality grants the building permit. Some permits may include conditions or specific compliance requirements, which must be met before construction begins. If no appeal is filed within 30 days, the permit becomes legally binding. If construction does not commence within three years, the permit expires, requiring a re-application.

What legal remedies are available if the building permit is rejected?

If a building permit is rejected, the applicant or affected third parties have the right to challenge the decision through an appeal (Rekurs) under Article 329 et seqq. PBG. The appeal process includes the following steps:

1. Request the Building Permit Decision
   Applicants must formally request the decision in writing from the local building authority within 20 days of the public notice period.
2. File an Appeal Against a Building Permit Denial
   If dissatisfied with the decision, an appeal must be lodged with the appropriate appeal authority within 30 days of receiving the rejection. The appeal must be substantiated with legal arguments and supporting documents.
3. Appeal Costs
   Appeals are subject to administrative fees, and the losing party is typically responsible for covering these expenses. Applicants should weigh the financial implications before proceeding with an appeal.

Successfully obtaining a building permit in Zurich requires meticulous planning, strict adherence to municipal and cantonal laws, and engagement with various regulatory authorities. Given the complexities of the process and the potential for disputes, seeking professional legal counsel ensures a smooth application process and mitigates risks associated with non-compliance.

If you require assistance with building permit applications, regulatory compliance, or appeals in Switzerland, our experienced legal team is prepared to provide expert guidance at every stage of the process.

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Whether buying, financing or developing a property: anyone dealing with real estate in Switzerland cannot avoid the land register. It is the central register for property rights and forms the basis for legal certainty and trust in real estate transactions. However, although the land register offers a high degree of reliability, it does not guarantee absolute security in every case. In this insight, we provide a compact overview of the most important issues relating to the land register – and show when legal assistance is essential.

What is in the land register and how is it structured?

The Swiss land register is based on the so-called real-folder system. A separate land register sheet is kept for each property, with a unique number. This ensures clarity and legal unambiguity. Only property rights such as ownership, easements, real burdens and mortgages in the form of mortgage contracts, mortgage certificate on paper or registered mortgage certificates are recorded in the land register. The system is supplemented by priority notices (e.g. for purchase or repurchase rights) and noting, e.g. for building prohibitions or restrictions on disposal.

However, purely compulsory rights, such as rental agreements, and family law relationships do not appear in the land register unless they are relevant under land register law. An exception to this is, for example, the noting on the participation in acquired property. The legal basis for the content and structure of the land register can be found in Art. 946 et seqq. Swiss Civil Code (“SCC”).

How do registration, priority notice and noting in the land register work and what role does the notary play?

The registration of a right in rem generally requires a publicly notarized legal transaction, which is usually carried out by a notary. Once the deed has been submitted to the land registry, it is checked for material defects and then entered in the land register. The absolute registration principle pursuant to Art. 971 para. 1 SCC is decisive here: Rights in rem to real estate only arise, change or expire upon entry in the land register.

Priority notices, on the other hand, concern personal rights, for example an agreed right of first refusal, and have a special effect compared to rights registered at a later date, provided the legal requirements are met (see Art. 959 et seqq. SCC). Noting, on the other hand, do not create independent rights, but refer to legally significant circumstances (see Art. 962 SCC). Their function is to provide information and disclosure, for example in the case of building prohibitions under public law or restrictions on disposal under private law.

The duration of a registration depends on the canton and the complexity of the process. It can range from a few days to several weeks. Early notarial preparation is therefore not only recommended, but in many cases crucial.

Why is the land register so important and what does legal force mean?

The land register forms the backbone of legal certainty in real estate transactions. It creates transparency for purchasers, investors and banks – in particular through the so-called positive and negative legal force. Positive legal force means that someone who relies in good faith on an entry in the land register is protected by this entry (see Art. 973 para. 1 SCC). For example, anyone who acquires a property and relies on the current entry becomes the owner, even if it later transpires that the entry was materially incorrect.

Negative legal force in turn allows third parties to trust that the land register is complete (see Art. 971 para. 1 SCC). If an entry is missing, it can generally be assumed that the corresponding right does not exist. But be careful: both protection mechanisms only apply under certain conditions. Anyone who knows the true facts or could have recognized them with reasonable care does not enjoy this protection of confidence. The land register is therefore a powerful but not an infallible instrument.

Who is allowed to obtain information or consult the land register and what is the difference?

The Swiss Civil Code makes a clear distinction between information and consultation. Anyone can obtain simple information about the data entered in the main register, such as ownership relationships or easements, without having to prove a particular legitimate interest (Art. 970 para. 2 SCC). For a comprehensive consultation, however, which also includes receipts, plans, journal and other supporting documents and implementing ordinances, a legitimate interest is required (see Art. 970 Para. 1 SCC).

Such an interest may be of an economic, scientific, personal or family nature – for example in the context of a purchase intention, debt enforcement or in the context of legal advice. In many cantons, it is also possible for lawyers to gain access electronically, subject to approval. It is always crucial that access to sensitive information remains proportionate and objectively justified.

When can the land register be misleading and when is there no protection of legitimate expectations?

Despite its systematic nature, the land register is not always a true reflection of legal reality. For example, there are cases in which the registered amount of a mortgage certificate is higher than the actual mortgage debt, which can lead to incorrect assumptions about the encumbrance of a property. In addition, the law permits a change of creditor for mortgage certificate on paper and mortgage contracts even without an entry in the land register, which is based on the so-called relative registration principle.

The situation is completely different with the registered mortgage certificate: The absolute registration principle applies here, and a change of creditor is only valid with an entry. Caution is also required with condominium set of rules: These documents may be outdated or no longer correspond to the actual circumstances, but remain legally binding as long as they have not been amended. In all these cases, the protection of legitimate expectations does not apply if the purchaser was aware of the true legal situation or should have been aware of it. It is therefore worth taking a close look and seeking professional advice.

Conclusion: Check the land register, don’t just read it

The land register is a fundamental element of Swiss property law, but it is no substitute for careful legal examination. Entries must not only be read, but also understood and evaluated in context. Legal know-how is essential, especially when checking land register extracts, real estate transactions or financing issues. After all, what appears clear at first glance may be quite different in legal depth.

LINDEMANNLAW offers you sound advice in the entire field of land register and real estate law – from the careful analysis of existing entries to the legally compliant drafting of contracts and the representation of your interests vis-à-vis authorities, land registries or third parties. We combine professional precision with strategic thinking – and consistently enforce your rights.

Talk to us for legal clarity in real estate transactions.

Disclaimer: This publication is for general information purposes only and does not constitute legal advice. For legal advice on your specific situation, please contact us directly.