Buying property in Switzerland: what Lex Koller lets Brits buy, and what it costs
Switzerland is a nation of renters, and the law makes buying harder still for foreigners. For Brits, what you can buy now depends on your permit and on whether you arrived before or after Brexit.
The short version
- Lex Koller (the federal law on the acquisition of real estate by persons abroad) decides whether you need permission to buy [1].
- C permit holders buy on the same terms as Swiss citizens. Brits covered by the UK–Swiss Citizens' Rights Agreement (living here before 1 January 2021) don't need authorisation either [1].
- Newer arrivals on a B permit can buy the home they live in without authorisation, but not a second home or holiday flat [1].
- Banks want about 20% of the price from your own funds, and at least 10% must come from sources other than your pension fund [2].
- The tax on imputed rent (Eigenmietwert) goes from the 2029 tax year, along with most deductions for owner-occupiers [6].
Who needs authorisation under Lex Koller
The aim of Lex Koller, in the government's own words, is to prevent Swiss land "from falling into foreign hands" [1]. Whether it bites depends on your nationality and residence status. Since Brexit, Brits fall into two groups.
| Your situation | Main home | Second home / holiday home | Business premises |
|---|---|---|---|
| UK national covered by the Citizens' Rights Agreement, living in Switzerland | No authorisation needed | No authorisation needed while resident | No authorisation needed |
| UK national on a B permit, arrived from 2021 | No authorisation, if you live in it yourself | Authorisation needed | No authorisation needed |
| UK national with a C permit | Same rights as Swiss citizens | Same rights as Swiss citizens | Same rights as Swiss citizens |
| UK national living abroad (even if covered by the Agreement) | Authorisation needed | Authorisation needed, and very limited | No authorisation needed |
Source: ch.ch, "Purchasing property in Switzerland as a foreign national" [1].
Citizens' Rights Agreement. If you were living legally in Switzerland before 1 January 2021, you don't need authorisation to buy a house or land [1]. If you already owned Swiss property, the FCDO confirms your property rights are protected under the agreement [7]. If you're unsure about your status, ask the competent authority in the canton where the property is [1].
B permit holders who arrived later are treated like other non-EU/EFTA residents. You can buy your main residence without authorisation as long as you have a valid residence permit and live in the home yourself rather than letting it out; you can also buy building land if you'll start building your home within a year [1]. A holiday home, a unit in a serviced residence (an aparthotel) or a second home needs authorisation [1].
C permit holders have the same rights as Swiss citizens [1]. Once you've been here long enough for a C permit, Lex Koller stops being your problem. See our guide to L, B and C permits.
Business premises don't need authorisation for anyone, unless the property is really for residential letting, trading or building [1].
Holiday homes: not in Zurich
Holiday homes for foreigners are rationed by a national quota of 1,500 units a year, shared out between the cantons [1]. Some cantons, Zurich and Geneva among them, don't sell this type of property to foreign nationals at all [1]. If you want a chalet, it'll be in a tourist area of another canton, and the rules are strict [1]:
- the living area can't exceed 200 m², and the plot is limited to 1,000 m²
- a holiday home can only be let out temporarily; a second home can't be let at all
- you can own only one holiday or second home in Switzerland.
Everyone, Swiss included, also runs into the second-homes law: you can't build a new second home in a commune where more than 20% of properties are already second homes [1]. If you live abroad, buying a second home is only possible where you have exceptionally close ties, and cantons interpret that differently [1]. Authorisation, where granted, is usually valid for three years [1].
Mortgages and your deposit
Swiss banks lend on cautious terms, and the rules differ from what you know back home in the UK.
- Find about 20% yourself. Banks expect roughly 20% of the price from your own capital [2]. That can be savings, securities, gifts or an early inheritance, Pillar 3a savings and pension fund money.
- At least 10% must be "hard" equity. If you need a mortgage, at least 10% of the price must come from sources other than your pension fund [2].
- First and second mortgage. A first mortgage usually covers about 65% of the price, and a second mortgage takes you to 80%, usually at a higher rate [2]. The second mortgage is normally paid down over time.
- Affordability. Banks test whether you could afford the home at a much higher notional interest rate than today's, including running costs. Ask each bank how it calculates this, as it decides how much you can borrow.
On a CHF 1,000,000 flat (about £911,100), that means about CHF 200,000 (about £182,200) of your own money, with at least CHF 100,000 (about £91,100) not from your pension fund.
Using your Swiss pensions
You can use Pillar 2 money to buy your own main home or pay down its mortgage. Up to age 50 you can withdraw it in full; after that only part; you can do this once every five years; your spouse must agree; and you'll usually have to pay it back if you sell [4]. Pillar 3a savings can also be withdrawn early to buy a home you'll live in [5]. Both are taxed on withdrawal and shrink your retirement savings, so weigh it carefully. Our guide to Pillar 2 and Pillar 3a explains both.
The costs of buying, and owning, in Zurich
Budget for more than the deposit [2][3]:
- Notary and land registry fees for the deed and transfer. In the canton of Zurich these are modest by UK standards, and the canton doesn't charge a separate property transfer tax.
- Mortgage set-up and valuation costs, which vary by bank.
- Wealth tax each year on the property's tax value, less the mortgage [3].
- Property gains tax when you sell, which falls the longer you've owned the home [3].
- Maintenance and the condominium fund for a flat.
Imputed rent is on its way out. Today owner-occupiers pay income tax on the Eigenmietwert, a notional rent, and deduct mortgage interest and maintenance [3]. After the yes vote of September 2025, the Federal Council decided on 1 April 2026 that the change will apply from the 2029 tax year. The tax on imputed rent goes, and so does the deduction for maintenance on your own home; mortgage interest stays deductible only in proportion to let property, with a limited deduction for first-time buyers [6]. That changes the sums on a big mortgage, so model both regimes if you're buying now.
UK property while you're in Switzerland
If you keep a UK home, the UK can still tax the rent and any gain under the UK–Swiss convention [8], with Switzerland exempting it but taking it into account for your rate. You'll need the Non-Resident Landlord Scheme for the rent and a 60-day return if you sell. Our comparison of buying property in Zurich vs back in the UK covers stamp duty surcharges and the UK side.
Never rely on a seller's or agent's word on Lex Koller: the cantonal authority decides, and the FCDO suggests an English-speaking lawyer before buying [7]. For first-hand stories of Swiss mortgage interviews, our community group for Brits in Switzerland has plenty.
Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = CHF 1.0976). This is general information, not legal or tax advice.
Sources
- ch.ch: Purchasing property in Switzerland as a foreign national
- ch.ch: Financing homeownership
- ch.ch: Checklist for buying a home
- ch.ch: The 2nd pillar
- Federal Social Insurance Office: Die dritte Säule (10 February 2026)
- Swiss Federal Council: Bundesrat setzt Abschaffung des Eigenmietwerts auf 2029 in Kraft (1 April 2026)
- GOV.UK (FCDO): Living in Switzerland (updated 24 December 2025)
- GOV.UK (HMRC): 1977 UK–Switzerland Double Taxation Convention as amended by the 2017 Protocol