Switzerland’s long-running debate over how far foreign nationals should be allowed to invest in domestic real estate reached a new crescendo on 15 July 2026, when the Federal Department of Justice published feedback from a three-month consultation on tightening the so-called Lex Koller law. The draft revision would bar persons resident abroad from purchasing shares in listed residential-property companies—closing a loophole that, according to the government, fuels price inflation in cities such as Zurich and Lausanne. Left-wing parties and the right-wing Swiss People’s Party, normally poles apart on immigration matters, both applauded the proposal, arguing that unrestricted foreign capital is distorting the housing market and undermining social cohesion. Business lobbies and estate-agent associations, by contrast, warned of “serious disadvantages for Switzerland as a business location,” with several REITs threatening to delist if the measure passes. From a global-mobility perspective, the revision would have tangible effects on expatriates posted to Switzerland on medium- to long-term assignments. While foreign residents with valid Swiss permits could still buy primary residences, investment in second homes or indirect stakes via property funds could become markedly harder. Employers may therefore face higher housing costs when relocating executives, especially in hotspot cantons where supply is already tight. The consultation, which closed on 15 July, coincides with a popular initiative to cap Switzerland’s population at ten million—another illustration of how housing and migration anxieties are interlinked in political discourse. The Federal Council will now draft a final bill for parliament; insiders expect compromise clauses exempting EU/EFTA citizens with permanent residence and multinationals running staff hostels, but the core restriction on non-resident investors is likely to stand. If enacted in 2027, global-mobility teams will need to review their long-term housing allowances and consider leasing rather than purchase agreements for inbound staff. Real-estate advisors also recommend locking in any planned acquisitions before the transitional period expires, as grandfathering rights may be limited.
Source: SWI swissinfo.ch
