Switzerland clamps down on foreign property buyers
Overseas property investors face new restrictions on the purchase of property in Switzerland from the beginning of next year.
Current legislation, known as Lex Koller, exists to control the amount and size of residential property that an international real estate buyer can purchase in the country. The maximum size of a single property available to non-Swiss buyers is 200 square metres and a permit is required before purchase from the suitable state and federal departments. Restrictions apply to areas within selected Holiday Zones – mainly ski resorts.
While full details are yet to be confirmed the new regulations are designed to ensure that all villages countrywide will contain no more than 20 per cent of dwellings registered as secondary residences.
Experts agree that this will result in far fewer properties for sale in Switzerland available to overseas buyers which could help to push prices higher.