Switzerland plans tighter foreign property purchase rules

The government of Switzerland announced on Wednesday its intention to implement stricter regulations on the acquisition of domestic real estate by foreign nationals. This move comes as the nation grapples with housing shortages and prepares for a high-stakes referendum regarding population limits.

The governing Federal Council has initiated a consultation period, set to run until mid-July, to amend the existing Lex Koller law. This legislation currently governs the extent to which foreign entities and individuals can own Swiss property. Under the new proposals, citizens from countries outside of the European Union or the European Free Trade Association would face more rigorous requirements. Specifically, these individuals would need to obtain permits to purchase primary residences and would be mandated to sell those properties within two years of departing the country.