In-depth article
Property acquisition · Lex Koller · German residenceBuying Swiss Property as a German National: What Are the Lex Koller Rules?
Anyone living in Germany who wants to buy property in Switzerland needs to consider more than financing and tax consequences. The first step is to establish whether the buyer qualifies as a “person abroad” under Lex Koller and whether the specific acquisition is exempt from approval, requires a permit or is not permitted. The key factors include residence, nationality, the use of the property and the nature of the proposed acquisition.
Overview
German buyers must first establish their eligibility to acquire property
Lex Koller is the Swiss federal legislation governing the acquisition of real estate by persons abroad. It restricts certain property acquisitions by persons who are classified as persons abroad under Swiss law.
A German national ordinarily resident in Germany generally falls within its personal scope. This does not, however, mean that every acquisition of Swiss real estate is prohibited.
The next step is to assess the type of property and its intended use. There are significant differences between residential properties, holiday homes, second homes, properties used as business premises and properties operated as part of a hotel business.
Lex Koller assessment
Three questions determine whether the acquisition can proceed
The assessment should take place before signing the purchase agreement, arranging financing and establishing the tax structure.
- Is the buyer a “person abroad”?
- Does the specific type of property require an acquisition permit?
- Does a statutory exemption apply, or can a permit be granted?
Who is covered?
Who qualifies as a person abroad?
For an individual who is a German national and actually resident in Germany, the starting point is generally clear: they qualify as a person abroad for Lex Koller purposes.
The assessment may differ if the person moves their actual residence to Switzerland. Significantly different rules apply to EU/EFTA nationals resident in Switzerland.
Residence in Germany
A German national resident in Germany generally qualifies as a person abroad.
Residence in Switzerland
Different acquisition requirements may apply to EU/EFTA nationals who are actually resident in Switzerland.
Cross-border commuters
EU/EFTA cross-border commuters resident abroad have a special option to acquire a second home in the region where they work.
Registration in Switzerland is not automatically sufficient
Where acquisition rules depend on Swiss residence, actual lawful residence is what matters. A merely formal address should not be equated with actual residence in Switzerland.
Type of property
Residential property and business premises are treated differently
| Property | Typical Lex Koller treatment | Key consideration |
|---|---|---|
| Apartment intended for long-term letting | Generally subject to restrictions or approval requirements for persons abroad | Residential letting does not qualify as use as business premises |
| Holiday home | Acquisition may be possible subject to conditions and a permit | The canton, holiday resort designation and quota are decisive |
| Primary home in Switzerland | Special exemptions apply where the relevant actual Swiss residence requirements are met | Actual residence and personal occupation are required |
| Second home for a cross-border commuter | A statutory exemption may apply to certain EU/EFTA cross-border commuters | Proximity to, or location within, the region of the workplace is relevant |
| Office / professional practice / shop | Use as business premises may generally qualify for exemption from approval | The property must actually be used for business purposes |
| Property operated as part of a hotel business | May be treated differently as business premises | The specific operating structure is decisive |
An investment apartment is not automatically a commercial property
Buying an apartment with the intention of letting it to third parties on a long-term basis does not, by itself, make it business premises exempt from approval.
Holiday homes
Holiday properties are subject to specific cantonal rules
A person living in Germany may, subject to certain conditions, acquire a Swiss holiday home or a residential unit operated as part of a hotel business. However, the fact that the property is located in a tourist region is not sufficient.
Relevant considerations include whether the canton has designated the location as an eligible holiday resort and whether a permit is available within the applicable quota.
Holiday resort
The location must meet the cantonal requirements for this type of acquisition.
Permit quota
Holiday home permits are subject to the applicable quota system.
Use
The property must remain available for its intended use as holiday accommodation.
Individual buyer
Holiday homes acquired under this permit regime are generally purchased by individuals.
Long-term letting of a holiday home can be problematic
A property approved as a holiday home under Lex Koller cannot simply be converted into a permanently let investment property. Restrictions on use and permit conditions must be reviewed before the purchase.
Tax consequences of owning a holiday home
The ongoing tax treatment of a Swiss holiday home owned by a German resident is covered separately in Swiss Holiday Home Owned by a German Resident .
Cross-border commuters
A special acquisition exemption applies to EU/EFTA cross-border commuters
Someone who retains their residence in Germany but works in Switzerland generally remains a person abroad. However, Lex Koller provides a special exemption for EU/EFTA nationals.
Subject to the statutory conditions, a cross-border commuter may acquire a second home in the region of their Swiss workplace without needing the Lex Koller permit that would otherwise be required.
Tax law and Lex Koller are separate systems
Whether someone qualifies as a cross-border commuter for tax purposes under Article 15a of the Germany–Switzerland double taxation agreement and whether they meet the Lex Koller property acquisition exemption are separate legal questions.
A company as the buyer
A Swiss AG does not automatically avoid Lex Koller restrictions
If the property is to be acquired through a company rather than personally, the ownership and control structure must also be analysed.
A German GmbH generally qualifies as a person abroad because it is a foreign company. However, a company with its registered office in Switzerland may also fall within Lex Koller if it is controlled by persons abroad.
Direct acquisition
A German GmbH’s status as a foreign entity is generally clear.
Swiss subsidiary
A Swiss registered office is not sufficient if the company is actually controlled from abroad.
A Swiss AG is not a simple workaround for Lex Koller
Incorporating a Swiss AG before purchasing property does not automatically remove an existing acquisition restriction. Control of the company must be examined, particularly where residential property is involved.
Compare company structures separately
For a comparison between a German GmbH and a Swiss property-holding company, see German GmbH or Swiss AG for Swiss Property?
Before the purchase
Establish acquisition eligibility before finalising the structure
Identify the buyer
An individual, a German company or a Swiss company?
Determine the use
A primary home, holiday home, rental property or business premises?
Assess Lex Koller
Establish whether approval is unnecessary, a statutory exemption applies or a permit is required.
Then finalise the structure
Align financing, the tax structure, the purchase agreement and subsequent use with the findings.
Do not plan the purchase agreement solely from a tax perspective
A tax-efficient structure is of little benefit if Swiss acquisition law prevents the intended buyer from acquiring the property or requires a permit. The Lex Koller assessment and tax structure should therefore be coordinated before the acquisition is completed.
German tax perspective
The acquisition is only the beginning of cross-border tax planning
Once the Swiss property acquisition is permissible, further questions arise from a German perspective. These depend primarily on whether the property is used personally, let to others or held through a company.
Personal use
A personally used home may raise residence and tax residency questions alongside Swiss property taxes.
Letting
Swiss rental income must be coordinated with German income tax and the tax treaty.
Financing
Swiss mortgages, German financing and loan interest may have different consequences.
Sale
The tax consequences of a future exit should already be considered at the time of purchase.
Common questions
Frequently asked questions from German buyers
Can a German national buy property in Switzerland?
Yes, but if the buyer lives in Germany, the acquisition depends on the type and use of the property and any applicable Lex Koller exemptions or permits.
Can I buy an ordinary Swiss apartment and let it on a long-term basis?
Significant Lex Koller restrictions apply to persons abroad, particularly for residential investment properties. The business premises exemption does not apply to ordinary residential letting.
Can I buy a holiday home?
Yes, subject to certain conditions. Relevant requirements include cantonal approval, an eligible holiday resort location and, where applicable, availability within the permit quota.
Can I buy through a Swiss AG?
A Swiss company does not automatically resolve the Lex Koller issue if it is controlled by persons abroad.
Can I buy an office or commercial building?
Properties actually used as premises for business activities may generally be exempt from the permit requirement.
Can I buy an apartment as a cross-border commuter?
Subject to certain conditions, EU/EFTA cross-border commuters benefit from a special acquisition exemption for a second home in the region of their Swiss workplace.
Further guidance
From acquisition eligibility to ongoing ownership and taxation
This article addresses eligibility to acquire property. Ongoing taxation, property use, financing and company structures are covered in the related guidance below.
Swiss Property Owned by a German Resident
Personal use, holiday homes, letting, financing and sale.
Explore this situationGerman GmbH or Swiss AG?
Company structures for Swiss property investments from a German perspective.
Compare structuresGermany–Switzerland Real Estate
Comprehensive guidance on cross-border property investments.
Explore real estate topicsGermany–Switzerland advisory services
Are you a German buyer planning to acquire property in Switzerland?
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