Switzerland's real estate market offers exceptional [stability and growth potential](https://swissfirma.com/switzerlands-rating-investments/) for international investors, but navigating its complex legal framework requires specialized expertise. From understanding the Federal Act on the Acquisition of Real Estate by Persons Abroad (Lex Koller) to structuring optimal investment vehicles and managing cross-border transactions, the right legal guidance transforms regulatory challenges into strategic advantages. Whether you're acquiring commercial property portfolios, developing [hospitality assets](https://swissfirma.com/open-hotel-switzerland/), or planning estate succession, professional legal representation ensures compliance, protects your interests, and maximizes returns in one of the world's most sophisticated property markets. > "Over two decades of practice in Swiss corporate and real estate law, I've guided international clients through hundreds of transactions—from CHF 2 million apartment acquisitions to CHF 500 million portfolio deals. The key insight: Swiss real estate investment success depends not on finding loopholes, but on understanding how federal and cantonal regulations interact, then designing structures that align legal compliance with commercial objectives. Every transaction presents unique challenges, yet the fundamentals remain constant—thorough due diligence, transparent documentation, and proactive risk management." — Markus Pritzker, Swiss Corporate Lawyer Need consultation on real estate in Switzerland? [Get free case evaluation](#contact-form) ## Our comprehensive legal services in real estate for investors International investors entering the Swiss real estate market face a multi-layered regulatory environment where federal laws intersect with cantonal ordinances, and where transaction structures significantly impact tax obligations and operational flexibility. Our legal services address the complete investment lifecycle—from initial market entry strategy through acquisition, financing, development, management, and eventual exit. ### Transaction support: from [due diligence to closing](https://swissfirma.com/escrow-service) (share & asset deals) Real estate transactions in Switzerland typically follow one of two structural paths: share deals (acquiring the company that owns the property) or asset deals (purchasing the property directly). Each structure carries distinct legal, tax, and operational implications that must be evaluated against your specific investment objectives. In share deals, the buyer acquires shares in a Swiss company (typically an [AG (Aktiengesellschaft)](https://swissfirma.com/opening-swiss-corporation-aktiengesellschaft/) or [GmbH](https://swissfirma.com/ag-vs-gmbh)) that holds the real estate asset. This structure preserves existing licenses, permits, and contractual relationships—critical for business continuity in operating properties like hotels or retail centers. However, the buyer inherits all company liabilities, including historical compliance obligations and potential anti-money laundering exposure. Asset deals involve direct transfer of property ownership from seller to buyer. This structure allows selective acquisition of specific assets while leaving unwanted liabilities with the seller. The buyer benefits from step-up in asset basis for depreciation purposes, reducing future tax burden. However, asset deals require individual transfer of each property component, third-party consents (from landlords, suppliers, lenders), and detailed asset valuations. Comparison: share deal vs. asset deal

Aspect	Share deal	Asset deal
Tax consequences for seller	Swiss tax-resident individuals benefit from capital gains tax exemption; cantonal transfer duties may apply	Seller taxed on realized profits; VAT applies to certain assets
Tax consequences for buyer	No step-up in asset basis; cannot use target's tax loss carryforwards	Acquirer can depreciate acquired assets at market value, reducing future tax burden through step-up in book value
Transfer of liabilities and debts	Buyer inherits all liabilities and debts automatically; no special formalities required	Buyer acquires only liabilities explicitly listed in purchase agreement; unwanted liabilities remain with seller
Process complexity and duration	Simpler: single transfer of shares; no individual asset transfers needed	More complex: detailed inventory of each asset, individual valuations, third-party consents required (landlord, suppliers, lenders)
Required permits and consents	Minimal formalities; registration in commercial register	Obtaining third-party consents mandatory; actual transfers of each asset required

Share Deal

Company

Acquiring shares of the AG/GmbH that holds the real estate.

Liabilities: Buyer inherits all historical debts and compliance risks.
Tax: No step-up in asset basis. Sellers often tax-exempt on gains.
Simplicity: Auto-transfer of permits and contracts.

Asset Deal

Property

Direct purchase of the property from the seller.

Liabilities: Clean break. Unwanted debts remain with seller.
Tax: Step-up in asset basis allows future depreciation.
Complexity: Requires detailed inventory and third-party consents.

Our transaction support encompasses negotiation of purchase agreements, coordination with notaries for document authentication, management of regulatory approvals, and post-closing integration assistance. ### Structuring investments, financing and tax planning Optimal investment structuring balances legal compliance, tax efficiency, and operational flexibility. For commercial real estate investments, the choice between direct ownership, [Swiss and foreign corporations](https://swissfirma.com/company-formation-switzerland/) ([AG or GmbH](https://swissfirma.com/ag-vs-gmbh)), or fund structures depends on investor profile, holding period, financing requirements, and exit strategy. [AG (Aktiengesellschaft)](https://swissfirma.com/opening-swiss-corporation-aktiengesellschaft/) structures suit larger commercial projects requiring institutional financing or multiple investor participation. The minimum share capital of CHF 100,000 provides credibility with lenders and business partners. AG structures facilitate creation of subsidiaries and branches for multi-property portfolios, enabling separate legal entities for each asset to isolate risks. GmbH (Gesellschaft mit beschränkter Haftung) structures work well for mid-sized investments and family office holdings. The lower minimum capital requirement (CHF 20,000, fully paid before registration) reduces initial capital commitment. GmbH structures provide similar liability protection and tax benefits as AG, with simpler governance requirements—one [director resident in Switzerland](https://swissfirma.com/swiss-directors/) suffices for compliance. For institutional investors and funds, we structure Swiss real estate vehicles that comply with collective investment scheme regulations while optimizing tax treatment. This includes coordination with FINMA (Swiss Financial Market Supervisory Authority) for regulated fund structures, and design of holding company architectures that minimize withholding taxes on distributions to foreign investors under applicable tax treaties. ### Support for construction and development projects Development projects in Switzerland require navigation of federal building regulations, cantonal zoning laws, and municipal planning ordinances. Our legal support begins at project conception, evaluating site suitability against zoning maps (Zonenplan) and building regulations (Bauordnung) to confirm permitted uses, maximum building heights, floor area ratios, and setback requirements. The building permit process (Baubewilligung) involves submission of detailed architectural plans, structural engineering reports, and environmental impact assessments to cantonal authorities. Projects must demonstrate compliance with federal environmental legislation covering water protection, air quality, waste management, and noise control. Construction contracts with general contractors require careful drafting to allocate risks, define performance standards, establish payment schedules, and provide remedies for delays or defects. We negotiate contracts based on SIA (Swiss Society of Engineers and Architects) standard forms, adapting terms to project-specific requirements. ### Management of commercial real estate and lease relations Commercial property management involves ongoing legal obligations related to tenant relations, property maintenance, regulatory compliance, and financial reporting. Our services support property owners and managers in drafting lease agreements, resolving tenant disputes, and ensuring compliance with cantonal tenancy laws. Standard commercial lease agreements for offices, retail spaces, and warehouses typically run for five years or less, with renewal options negotiated at inception. Unlike residential leases (which enjoy strong tenant protections under Swiss law), commercial leases allow greater contractual freedom in defining rent adjustment mechanisms, maintenance responsibilities, and termination conditions. For international investors, we structure property management arrangements with Swiss-based management companies that handle day-to-day operations—tenant relations, maintenance coordination, insurance administration, and utility management. {{cta:cta-1}} ## Navigating Swiss legislation for foreign investors Disclaimer: Information provided is general in nature and does not replace consultation with a specialist. Switzerland's federal structure creates a complex regulatory landscape where national laws establish baseline requirements, while cantonal and municipal authorities implement additional rules and exercise discretionary approval powers. ### What is "Lex Koller" and how does it affect your investments? The Federal Act on the Acquisition of Real Estate by Persons Abroad (Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland), commonly known as Lex Koller, restricts foreign acquisition of Swiss residential real estate to protect the domestic housing market from speculative foreign demand. Enacted in 1983 and entering force January 1, 1985, the law replaced the earlier Lex Friedrich regime with a more structured authorization system administered by cantonal authorities. Lex Koller applies to "persons abroad"—defined as non-Swiss nationals residing outside Switzerland, and foreign legal entities regardless of where their shareholders reside. EU/EFTA nationals holding Swiss residence permits (B or C permits) are exempt when purchasing primary residences, enjoying the same property rights as Swiss citizens. The law prohibits foreign acquisition of residential property without cantonal authorization. Residential property includes single-family homes, apartments, vacation homes, and mixed-use buildings where residential space exceeds 50% of total area. Authorizations are granted only for properties in designated tourist zones, subject to cantonal quotas that limit the total number of foreign-owned units in each municipality.

Lex Koller: Foreign Acquisition Rules

Eligibility based on investor status and property type

Swiss Nationals & Residents

Includes C-Permit Holders & EU/EFTA B-Permit (Main Home)

Commercial Allowed

Residential Allowed

Non-Residents (Business)

Foreign companies & individuals for business use

Commercial Allowed

Residential Restricted

Non-Residents (Private)

Holiday homes & non-business investment

Commercial Allowed

Residential Auth. Required*

*Subject to quotas in tourist zones only.

Commercial real estate—offices, retail spaces, hotels, industrial facilities, warehouses—is exempt from Lex Koller restrictions when acquired for business purposes. This exemption allows foreign investors to purchase income-producing commercial properties without authorization, provided the property is used for the investor's own business operations or rented to commercial tenants. Official publication of Lex Koller is available at the Swiss Federal Administration's legal database: [Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents](https://www.fedlex.admin.ch/eli/cc/1984/1148_1148_1148/en) (SR 211.412.41, Fedlex portal). ### Cantonal peculiarities and local nuances While Lex Koller establishes federal baseline restrictions, cantonal authorities exercise significant discretion in implementation, creating meaningful variations in foreign property acquisition rules across Switzerland's 26 cantons. Zurich and Geneva—Switzerland's two largest urban cantons—impose no quotas on foreign acquisition of vacation homes, as these cantons contain minimal designated tourist zones. Foreign non-residents can purchase residential property in these cantons only by obtaining Swiss residence permits (B or C permits) for primary residence purposes. Zug and Vaud maintain quota systems for vacation properties in designated tourist areas, following the federal Lex Koller framework. Authorized purchases are limited to maximum 200 square meters of living space and 1,000 square meters of land, with cantonal authorities reviewing applications based on property location, applicant profile, and remaining quota availability. Geneva and Vaud offer streamlined procedures for EU/EFTA nationals holding Swiss residence permits. These individuals acquire property without prior authorization or restrictions on principal residence, surface area, or location—enjoying the same rights as Swiss citizens. Tax treatment of real estate transactions also varies by canton. Property transfer taxes range from 0.5% to 3.3% of purchase price depending on canton. Annual property taxes range from 0.1% to 0.3% of cadastral or market value, with rates set by cantonal and municipal authorities.

Transfer Tax

0.5 - 3.3%

Varies by canton. Charged on purchase price at acquisition.

Annual Property Tax

0.1 - 0.3%

Based on cadastral or market value. Set by municipal authorities.

Wealth Tax

~0.02 - 1%

Levied on net assets including real estate (cantonal variations).

VAT Applicability

Asset Deals

Applies to certain asset transfers. Share deals generally exempt.

## Personal estate, inheritance and asset protection in Switzerland Real estate ownership intersects with personal wealth planning, inheritance law, and asset protection strategies—particularly for international investors with cross-border family structures and multi-jurisdictional assets. ### Comprehensive estate planning and will preparation Swiss inheritance law follows a forced heirship system that guarantees minimum shares (compulsory portions) to direct descendants and spouses, limiting testamentary freedom. Under reforms effective January 1, 2023, compulsory portions for children were reduced from 75% to 50% of their statutory share, providing greater flexibility for testators to allocate assets according to their wishes. Wills (Testament) are the most common estate planning instrument in Switzerland. They allow testators to distribute assets subject to compulsory portion requirements, designate executors, establish conditions on bequests, and provide for charitable donations. Swiss law recognizes three will forms: public wills (drafted before a notary with two witnesses), holographic wills (entirely handwritten, dated, and signed by the testator), and oral wills (permitted only in emergency situations with witness attestation). Inheritance contracts (Erbvertrag) provide stronger legal certainty than wills, particularly for complex estates and cross-border situations. These binding agreements between testators and heirs must be notarized and require consent from all parties. Advance care directives (Vorsorgeauftrag) address decision-making capacity rather than asset distribution. These documents designate representatives to manage personal care, financial affairs, and legal representation if the principal becomes incapacitated. ### Inheritance law: supporting heirs in succession and estate distribution Inheritance opens at the deceased's last place of residence, with Swiss law applying to all assets located in Switzerland regardless of the deceased's nationality or domicile. Heirs are determined by statutory succession rules (if no will exists) or testamentary dispositions (subject to compulsory portions). Swiss law presumes silent acceptance of inheritance—heirs automatically accept both assets and liabilities three months after notification of death or will disclosure, unless they formally disclaim the inheritance. Notaries or cantonal judges issue certificates of inheritance (Erbschein) confirming heirs' legal status and ownership shares. These certificates are required to transfer real estate title from the deceased to heirs, with land registry offices refusing registration without proper documentation. ### Asset protection, guardianship and protective arrangements Swiss law provides several mechanisms for protecting real estate assets from creditor claims, family disputes, and succession conflicts. Family foundations (Stiftung) allow transfer of assets—including real estate—from the founder to a foundation governed by an independent board. Once transferred, assets exit the founder's personal estate, protecting them from personal creditors and excluding them from marital property or inheritance claims. Holding companies (AG or GmbH) provide asset protection by recording real estate ownership in the company's name rather than the individual's personal assets. The founder retains control as shareholder and director while removing direct ownership from public registries. Adult protection law (Erwachsenenschutzrecht) establishes guardianship and protective arrangements for individuals unable to manage their affairs due to age, illness, or disability. {{cta:cta-1}} ## Why leading investors and private clients choose us International real estate investment in Switzerland demands legal expertise that spans multiple disciplines—corporate law, tax law, real estate law, inheritance law, and regulatory compliance. ### Who we advise Our client base reflects the diversity of Switzerland's real estate market: - International investment funds acquiring commercial property portfolios in Swiss urban centers, requiring complex transaction structuring, regulatory compliance, and tax optimization across multiple jurisdictions. - Private investors (HNWI) establishing Swiss real estate holdings as part of broader wealth diversification strategies, seeking asset protection, succession planning, and residence permit pathways. - Real estate developers executing ground-up construction projects and adaptive reuse developments, navigating zoning regulations, building permits, and construction contracts. - Family offices managing multi-generational real estate portfolios, requiring integrated legal, tax, and succession planning to preserve wealth across generations. - Swiss and foreign corporations acquiring operational real estate (headquarters, manufacturing facilities, logistics centers) or investment properties, balancing commercial objectives with regulatory compliance and tax efficiency. ### Our experience in numbers and cases Two decades of practice in Swiss real estate law have produced measurable results for clients across transaction types and property sectors. Case 1: supporting purchase of commercial real estate portfolio by international fund A Luxembourg-based real estate fund sought to acquire a CHF 180 million portfolio of office buildings in Zurich and Geneva. The transaction involved share deal acquisition of two Swiss AG holding companies, each owning multiple properties. Our due diligence identified legacy environmental liabilities at one property (soil contamination from historical industrial use) and incomplete building permits for recent renovations at another. We negotiated seller indemnities for environmental remediation costs (capped at CHF 2.5 million) and obtained retroactive building permits from cantonal authorities before closing. > "The team's ability to identify and quantify hidden risks during due diligence saved us from significant post-closing liabilities. Their negotiation of seller indemnities and coordination with cantonal authorities to cure permit defects demonstrated both technical expertise and practical problem-solving." — Director, International Real Estate Fund Case 2: structuring deal for private foreign investor A non-EU investor sought to acquire a CHF 12 million lakefront villa in Vaud for personal use. Direct purchase was prohibited under Lex Koller (property exceeded 200 square meter authorization limit and was located outside designated tourist zones). We structured the acquisition through a Swiss GmbH established specifically for this purpose, with the investor as sole shareholder. The GmbH acquired the property for business purposes (corporate retreat and client entertainment), avoiding Lex Koller restrictions. > "Creative structuring within legal boundaries—that's what distinguished this firm. They found a compliant path to acquire the property when others said it was impossible." — Private Investor Case 3: legal support for major development project in Zurich A Swiss developer planned a mixed-use project in Zurich: 15,000 square meters of residential space, 5,000 square meters of retail, and underground parking for 200 vehicles. We coordinated the complete legal process from land acquisition through project completion. The project faced opposition from neighboring property owners concerned about increased traffic and building height. We represented the developer in administrative proceedings, successfully defending the building permit against appeals. > "From land assembly through permit defense to construction completion, the legal team anticipated issues and provided solutions that kept the project on track. Their experience with Zurich's planning authorities was invaluable." — Development Company CEO ### Related expertise: family law and business planning Real estate investment intersects with family law and business planning in multiple contexts. Marital property regimes determine ownership rights when spouses acquire real estate jointly or individually. Divorce proceedings require valuation and division of real estate assets, often involving complex negotiations over continued ownership, buyout terms, or forced sale. Business succession planning for family-owned real estate companies requires coordination between corporate governance, tax optimization, and family dynamics. ## Our process: from legal document preparation to final agreements Successful real estate transactions follow a structured process that manages legal, commercial, and regulatory requirements in parallel. Process of working with us Stage 1: initial consultation and investor goals analysis Every engagement begins with comprehensive understanding of client objectives, constraints, and risk tolerance. Initial consultations explore investment thesis (income generation, capital appreciation, operational use), target property types and locations, budget parameters, financing requirements, and timeline expectations. Stage 2: development of legal strategy and commercial proposal Based on initial analysis, we develop detailed legal strategies addressing transaction structure (share deal vs. asset deal), ownership vehicle (direct ownership, AG, GmbH, fund structure), financing arrangements, tax optimization opportunities, and regulatory compliance requirements. Stage 3: project implementation (due diligence, negotiations, documentation) Implementation begins with comprehensive due diligence—legal review of title documents, building permits, zoning compliance, environmental assessments, lease agreements, and corporate records (for share deals). We identify defects, encumbrances, and compliance gaps, then negotiate remedies through purchase agreement provisions, seller representations and warranties, indemnities, or price adjustments. Stage 4: successful completion and post-project support Closing involves simultaneous execution of all transaction documents, transfer of purchase price, delivery of title documents, and registration of ownership transfer in land registry. Post-closing support includes assistance with property management arrangements, lease negotiations, regulatory compliance (building inspections, environmental reporting), and ongoing corporate governance for Swiss holding companies.

Investment Process Workflow

Analysis

Define goals (yield vs. appreciation), location, budget, and timeline.

Strategy

Select structure (AG, GmbH, Direct), financing, and tax entry strategy.

Implementation

Due diligence, contract drafting, seller negotiations, and financing.

Closing & Post

Notarization, title transfer, integration, and property management setup.

## Your real estate law experts in Switzerland Our team combines academic credentials, professional certifications, and practical experience across Swiss real estate, corporate, and tax law. Markus Pritzker, partner, real estate and corporate law Markus leads our real estate practice, specializing in complex commercial transactions, development projects, and cross-border investments. His background includes regulatory work at FINMA, international M&A practice in New York, and two decades advising Swiss and foreign clients on corporate structuring and real estate law. {{cta:cta-1}} ## Schedule consultation for expert legal guidance Navigating Swiss real estate law requires specialized expertise that balances regulatory compliance with commercial objectives. Whether you're acquiring your first Swiss property or managing a multi-asset portfolio, professional legal representation protects your interests, optimizes tax treatment, and ensures smooth transaction execution. Contact us today to discuss your real estate objectives and receive tailored legal advice addressing your specific situation. Our initial consultations provide clear assessment of legal requirements, regulatory constraints, and optimal structuring approaches—giving you the foundation for informed investment decisions in Switzerland's dynamic real estate market. Disclaimer: This article provides general information about Swiss real estate law and does not constitute legal advice. Real estate transactions involve complex legal, tax, and regulatory considerations that vary based on specific circumstances. Readers should consult qualified legal and tax professionals before making investment decisions or entering into real estate transactions in Switzerland.

Real estate lawyers in Switzerland: expert support for your transactions and investments