For an international buyer, Switzerland can feel uniquely closed. The country combines an exceptionally stable lending environment with one of the most restrictive ownership regimes in Europe for non-residents, and the rules that govern who may buy what are the single most important thing to understand before any financing conversation begins. That regime is known as Lex Koller.

This is a practical guide for foreign investors and their advisers. It is not legal advice, and the position on any given asset must be confirmed with Swiss counsel, but it should make the shape of the constraint clear before you spend time on a transaction that the law will not allow.

What Lex Koller Is

Lex Koller is the Swiss federal law restricting the acquisition of real estate by persons abroad. In broad terms, a "person abroad" includes non-residents, and foreign-controlled companies or structures, wherever they sit in the ownership chain. Where the law applies, the acquisition requires authorisation, and in many cases authorisation simply is not available.

The crucial point is that Lex Koller is concerned primarily with residential real estate. It is the residential character of an asset, more than anything else, that triggers the restriction.

What It Restricts, and What It Does Not

As a working distinction, purely residential property acquired by a non-resident is the difficult case, and commercial property is generally the straightforward one.

Commercial real estate, offices, retail, logistics, and premises used for a genuine business operation, is generally outside the scope of Lex Koller, and a person abroad can usually acquire it without authorisation. This is why a great deal of cross-border Swiss investment is structured around commercial and mixed-use assets rather than apartments.

Residential property is where the restriction bites. A non-resident generally cannot freely acquire Swiss residential real estate as an investment, and a lender taking security over such an asset has to take the regime into account.

The Main Exemptions

Several exemptions matter in practice, and each should be checked with Swiss counsel against the specific asset and buyer:

Primary residence. A foreign national who holds a valid Swiss residence permit and actually lives in Switzerland can generally acquire their own main home without Lex Koller authorisation.

Commercial and business premises. Property serving a permanent business establishment is generally acquirable by a person abroad without authorisation.

Hospitality. Hotels and serviced-residence operations run as genuine commercial businesses are frequently treated as commercial rather than residential, which is why qualifying hospitality assets can often be financed for non-resident borrowers.

Holiday homes. In designated tourist areas, certain cantons permit the acquisition of holiday homes by non-residents, subject to quotas and conditions. This is a narrow and tightly controlled exemption.

Why It Matters Before You Finance

Financing follows ownership. If the law does not permit the acquisition, there is no facility to arrange, and a lender will not perfect security over an asset that the buyer cannot lawfully hold. That is why Lex Koller sits at the very front of any Swiss deal screening, ahead of pricing, leverage or term.

For Swiss-resident borrowers and Swiss-domiciled vehicles, the regime is far less of an obstacle, and the prime market, lakefront residential, alpine chalets and residential investment portfolios, is well served by private banks and specialist lenders. The complication is specific to the person abroad.

How We Handle It

We screen for Lex Koller at the outset of every Swiss enquiry, with the borrower's Swiss counsel, before issuing any indicative terms. Where a structure is genuinely incompatible with the regime, we say so plainly rather than run a process that cannot close. Where an exemption applies, commercial premises, qualifying hospitality, a permit-holder's main residence, or a Swiss-resident borrower, we move to the financing on its merits.

Bridge facilities we arrange in Switzerland are typically priced from around 8% per annum, with senior leverage up to around 70% of value, set by the chosen lender. But none of that is worth discussing until the Lex Koller position is settled. Get that right first, and the rest of a Swiss transaction is as orderly as the country's reputation suggests.