ARTICLE
14 March 2017

Swiss Federal Government Plans To Tighten Foreign Investors' Rights To Acquire Swiss Real Estate

RA
Rihm Attorneys

Contributor

Rihm Attorneys logo
Rihm Attorneys at law is a Swiss law practice with an international outlook and counseling focus around all aspects of entrepreneurship. For more than 30 years, the firm has advised and represented companies and entrepreneurs in complex transactions and restructurings, including technology transfer as well as in state court, arbitration and insolvency proceedings including mediation proceedings. Based in the centre of Zurich nearby Paradeplatz, Rihm Attorneys at law can draw upon a well-established global network of correspondent law firms in all major business centers. Through one of its partners, Prof. Dr. Karl Pilny, the firm has recently acquired a longstanding Asian practise. Our working languages are German, English, French, Italian, Japanese, Turkish, Serbo-Croatian and Albanian. According to Chambers, Best Lawyers and Who's Who Legal, Rihm Attorneys at law is leading in the fields of M&A, insolvency and employment & compensation benefits laws.
On March 10, 2017, the goverment opened the consultation process ending on June 30, 2017, by presenting the draft legislation.
Switzerland Real Estate and Construction

The Swiss Federal Government intends to adapt the federal laws on the acquisition of real estate land by persons abroad (Lex Koller) in order to address widespread concerns that foreign investments - also by individuals immigrating to Switzerland - continue to drive up real estate prices in Switzerland. On March 10, 2017, the goverment opened the consultation process ending on June 30, 2017, by presenting the draft legislation.

With a view to reverting to the purpose of the law, the Swiss Federal Government proposes that the acquisition of capital housing by nationals of countries other than the European Union (EU) or the European Free Trade Association (EFTA) be subject again to authorization, this authorization to be combined with an obligation to sell the residential property again as soon as the place of residence in Switzerland is abandoned (what led in the past to cases of obvious abuse, also with respect to owners acquiring under the EU/EFTA-safe haven).

In addition, the Swiss Federal Council wants to clarify controversial practical questions, for example, the conversion of commercial real estate into residential properties. And the Swiss Federal Goverment intends to shorten the procedures by abolishing double cantonal appeal bodies and to reduce administrative burdens.

The Swiss Federal Government also uses the consultation process to obtain feedback on potential revisions regarding the purchase of commercial real estate in combination with a business operation in Switzerland (in other words to reintroduce the authorization procedures required until 1997), whereby the cantons would be given the possibility of loosening the rule in cases of considerable investment importance or their local community for reasons of tourism. And even more importantly, the Swiss Federal Goverment wants to debate whether the purchase of shares in residential property investment companies by foreigners should be again subject to stricter rules (after this basic ban had been lifted in 2004).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More