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Business
Lex Koller: Hardening Proposal Emerges Significantly Weakened from Consultation
Herz — Business Desk · · 30s summary · 3 min read
The essentials
The consultation on hardening the Lex Koller — Switzerland's federal law limiting real estate purchases by foreign residents since 1985 — closed on July 15, 2026, with the proposed text emerging significantly weakened, according to Le Temps. Unveiled on April 15, 2026, by the Federal Council under Federal Councillor Beat Jans's initiative, the proposal targeted non-EU/EFTA citizens and foreign-domiciled investors. It faced strong opposition, with critics calling it "useless and counterproductive." The government's impact analysis warned of negative economic consequences and limited effects.
- The Lex Koller hardening consultation ended July 15, 2026.
- The reform proposal emerged significantly weakened after strong opposition.
- The proposal would restrict real estate purchases by non-EU/EFTA nationals.
- Government impact analysis flagged limited effects and economic risks.
- The proposal followed rejection of the UDC initiative in June 2026.
What we know
The consultation phase regarding the hardening of the Lex Koller — during which Swiss cantons, political parties, and stakeholders provide formal opinions on a legislative proposal — concluded on July 15, 2026. According to Le Temps, the proposed text emerged significantly weakened.
The Lex Koller, officially the Federal Law on the Acquisition of Real Estate by Foreign Persons, has restricted real estate purchases by foreign residents in Switzerland since 1985. The Federal Council unveiled a hardening proposal on April 15, 2026, at the initiative of Federal Councillor Beat Jans.
Proposed measures
The proposal would require authorization for nationals of countries outside the European Union or the European Free Trade Association (EFTA), a European free trade organization founded in 1960, wishing to purchase a primary residence. In cases of relocation, the property would need to be resold within two years.
The text would additionally prohibit foreign-domiciled persons from acquiring commercial real estate for rental purposes. It would also ban the acquisition of shares in residential real estate companies listed on stock exchanges and shares in real estate funds.
Political context
The proposal is part of a package of accompanying measures designed following the launch of the Swiss People's Party (UDC) initiative "No Switzerland at 10 Million!" Swiss voters rejected this initiative in June 2026.
The impact analysis commissioned by the Federal Council concludes that the hardening's effects would be limited and warns of negative economic consequences.
Strong opposition during consultation
The proposal faced significant opposition during the consultation, with opponents characterizing it as "useless and counterproductive."
useless and counterproductive
— Characterization by opponents during the federal consultation
Timeline
- April 15, 2026The Federal Council unveils the Lex Koller hardening proposal at the initiative of Federal Councillor Beat Jans.
- June 2026Swiss voters reject the UDC initiative "No Switzerland at 10 Million!"
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