Switzerland Plans to Restrict Foreign Property Purchases
The Swiss government has announced plans to tighten rules governing foreign property purchases, aimed at addressing housing shortages and population growth concerns.
Key Changes
- Main Residences: Non-EU/EFTA citizens will require permits to buy main residences, and must sell these homes if they leave Switzerland within two years.
- Commercial Property: Nationals from non-EU/EFTA countries will be barred from acquiring commercial real estate for rental or investment purposes.
- Holiday Homes: Purchase of holiday homes will be limited by reduced cantonal permit quotas and tightened resale rules.
Background
The Swiss government's move comes amid concerns over housing shortages and an upcoming referendum on limiting the country's population. The governing Federal Council has urged voters to reject the proposal to stop the permanent resident population exceeding 10 million by 2050.
Reasons Behind the Move
Switzerland's higher living standards, strong corporate landscape, and job creation have contributed to immigration, putting pressure on public infrastructure. The government aims to balance economic growth with the need to maintain a sustainable and inclusive society.
Next Steps
The Federal Council will hold consultations on the proposed changes until mid-July, with the goal of amending the "Lex Koller" law to implement the new restrictions.