Swiss government wants to add restrictions to foreign property

The Swiss Federal Government intends to adapt the federal laws on the acquisition of real estate land by persons abroad, known as Lex Koller.
It focuses on the possibility that foreign investments – also by individuals immigrating to Switzerland – continue to drive up real estate prices in Switzerland. On March 10, 2017, the goverment opened the consultation process ending on June 30, 2017, by presenting the draft legislation.
The two most far reaching proposals have already been rejected by the parliament in 2014.

The Swiss Federal Government now, proposes that the acquisition of capital housing by nationals of countries other than the European Union (EU) or the European Free Trade Association (EFTA) be subject again to authorization. 

EU-national resident in Switzerland are treated like Swiss citizens under the current law and therefore are not subject to any restrictions when acquiring Swiss real estate. Nothing will change in this respect.

Nationals from third states, for example nationals form other countries than the EU or Switzerland, are only treated like Swiss citizens if they hold a Swiss resident permit C.

Prior to acquiring a resident permit C, however, such third state nationals may acquire an apartment or house at their place of domicile as their primary residence. Today, no permit is required for such an acquisition. The Federal Council now proposes to subject the acquisition of a primary residence again to a permit requirement, which complicates the acquisition process.

According to today's law, third state nationals without resident permit C may not acquire shares in housing cooperatives. Part of the Federal Council's proposal is to adjust this.

In addition, the Swiss Federal Council wants to clarify controversial practical questions as the conversion of commercial real estate into residential properties. 
Under the present law, foreigners may acquire mixed-use properties if the local zoning regulations require a minimum quote of residential use, in practice no more than a residential quota of 50% is accepted. Now, the Federal Council proposes to expressly limit the residential quota to one third.
And the Swiss Federal Goverment intends to shorten the procedures by abolishing double cantonal appeal bodies and to reduce administrative burdens.