Maintenance of existing regulations in effect for non-residents (i.e. non-citizens of EU/EFTA Member States)
The existing regulations of the Lex Koller and the formal procedures remain in force for non-residents. Non-residents are considered to be foreign nationals resident abroad and foreign nationals resident in Switzerland who are neither citizens of an EU or EFTA Member State nor hold a valid residence permit (Alien's Identity Card Type C).
a) Main residence
In the case of a main residence (property for own residential use), acquisition of land by non-resident foreign nationals with a residence permit (e.g. Alien's Identity Card Type B) need only be submitted to the Department of Economic Affairs if the parcel of land exceeds an area of 3,000 m2 (living area irrelevant). In this case no permit is required to purchase, but solely a decree ascertaining that no permit is required. Acquisition of land parcels larger than 3,000 m2 is permitted if the nature of the land parcel makes its division unreasonable or the need for a greater area (e.g. for representational purposes or the installation of security systems) appears to be justified. In the case of acquisition of land by individual non-residents, the person drawing up the title deeds must thus establish which type of Alien's Identity Card is held by the purchaser and whether he/she will use the land for his/her own residential purposes. In the case of building land, a corresponding declaration in the deeds must prove that the land will be built on for residential purposes within a reasonable period of time (maximum two years).
b) Commercial premises
Acquisition of land for commercial purposes (including land reserves) does not require a permit. Title deeds for an acquisition of this kind must include a clause stating that the parcel of land and any areas held in reserve are for commercial purposes. Legislation extends to allowing commercial premises not being used by the purchaser, but rented or leased to third parties, to be acquired without legal authorization. For undeveloped land or parts thereof (building land), a corresponding declaration in the deeds must prove that the land will be built on for commercial purposes within a reasonable period of time (maximum three years). Land acquired for commercial purposes may also include a certain allocation for residential purposes. Amounts of land officially allocated for residential purposes within trade and industrial zones or mixed zones with a predominance of commercial use may be acquired together with the land for commercial purposes. In zones for which no residential use is stipulated, the residential portion may as a rule not exceed 5% of the usable area. In exceptional cases the authorities may declare larger portions for residential purposes free from requiring a permit.
c) Investment in real estate companies
Non-residents may make any amount of investment in real estate companies, providing that the company assets are exclusively or predominantly concerned with land for commercial purposes (guideline 66% of assets). The Department of Economic Affairs will be pleased to provide information in case of uncertainty.
d) Procedure for establishing non-requirement of a permit
The procedure is kept to a minimum. For purchase of residential property by legal entities or business partnerships, title deeds must include a declaration that the purchaser involved is a real estate company in the true sense (i.e. a company whose sole or main purpose is to purchase, manage or act as agents for property). The procedure will continue as before. Companies which have already undergone review will be free of further review for a period of up to nine years in respect of purchase of more residential property, providing that no major changes in company structure have taken place. The enclosed yellow form must be completed and submitted to the Land Registry Office together with the title deeds in all cases of acquisition of residential property by legal entities or business partnerships.
e) Permits for foreign insurers, pension funds and banks
Foreign-controlled banks and insurance companies licensed to do business in Switzerland require permits for the acquisition of real estate as a capital investment by insurance institutions, for domestic company pension funds, as well as to cover secured claims (Lex Koller Art. 8, par. 1 subpar. b, c and d).