Yes. Foreign investors can generally buy genuine commercial real estate in Switzerland without being Swiss residents and, in many cases, without Lex Koller authorisation. The rules are very different from those applying to residential and holiday property. This guide explains what qualifies as commercial property, when Lex Koller applies, whether a Swiss company is needed, how mixed-use buildings are treated and what international investors should check before buying.
A foreign investor does not necessarily need to live in Switzerland to buy commercial real estate in Switzerland.
This surprises many international buyers because Switzerland is well known for restricting property acquisitions by persons abroad.
The important point is that Swiss law distinguishes very clearly between residential property and real estate used for genuine commercial purposes.
Under the current Lex Koller rules, qualifying commercial property can generally be acquired by persons abroad without prior authorisation.
Can foreigners buy commercial property in Switzerland?
Yes.
According to the Swiss Federal Office of Justice, real estate used for an economic or commercial purpose as a permanent business establishment can generally be acquired by persons abroad without Lex Koller authorisation.
Examples given by the federal authorities include:
- offices
- manufacturing premises
- warehouses
- shopping centres
- retail premises
- hotels
- restaurants
- workshops
- doctors' surgeries
This exemption is based on Article 2 paragraph 2 letter a of the Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents, commonly known as Lex Koller.
Does the foreign investor have to operate the business personally?
No.
This is one of the most important points for international property investors.
A foreign investor does not necessarily have to use the commercial property for their own company.
The Federal Office of Justice expressly states that it does not matter whether the property is used by the buyer's own business or rented or leased to a third party carrying out a commercial activity.
This means that qualifying Swiss commercial real estate may also be purchased purely as an investment.
For example, a foreign investor may potentially acquire an office property and rent the offices to businesses.
That is fundamentally different from purchasing residential apartments for rental purposes.
What is the main difference between commercial and residential property?
The distinction is not simply whether the buyer considers the property an investment.
The decisive issue is the actual use of the property.
Swiss federal guidance specifically distinguishes commercial business activity from the construction, rental or trading of residential property.
Therefore, buying an apartment building and renting the apartments to tenants does not automatically become a commercial-property transaction merely because the investor considers it a business investment.
This distinction is one of the areas foreign investors most frequently misunderstand.
Does a foreign buyer need to be resident in Switzerland?
Not necessarily.
For qualifying commercial property, residence abroad does not in itself prevent an acquisition.
This differs significantly from many residential-property transactions, where nationality, residence status, permit type, intended use and location can be decisive.
There is also another important distinction:
Buying property in Switzerland does not give the buyer a Swiss residence permit.
Property ownership and immigration status are separate legal matters.
The Federal Office of Justice expressly confirms that ownership of Swiss real estate does not by itself create a right to residence in Switzerland.
Does a foreign investor need a Swiss company?
Not automatically.
Depending on the transaction, ownership may potentially be structured through:
- the investor personally
- a Swiss company
- a foreign company
- another appropriate investment structure
The correct structure depends on considerably more than the ability to purchase the property.
Before choosing the buyer entity, an investor should normally consider:
- taxation
- financing
- liability
- rental income
- distribution of profits
- future sale strategy
- succession planning
- source-of-funds requirements
- double-taxation implications
- asset deal versus share deal
The ownership structure should ideally be analysed before a binding purchase agreement is signed.
Can I establish a Swiss company and use it to buy residential property?
This is a common misconception.
Creating a Swiss company does not automatically remove Lex Koller restrictions.
A company incorporated in Switzerland can itself fall within Lex Koller if it is controlled by persons abroad.
More importantly, a residential property does not become qualifying commercial real estate simply because it is held by a company.
The actual use of the property remains relevant.
Using a Swiss GmbH or AG can therefore be an appropriate structure for some investments, but it is not a universal method of circumventing foreign-purchaser restrictions.
What about mixed-use buildings?
Mixed-use properties require particular attention.
Consider a building containing:
- shops on the ground floor
- offices on several floors
- residential apartments above them
The existence of commercial space does not mean that the entire property can automatically be treated as unrestricted commercial real estate.
The residential component, the allocation of the property and its actual and intended use need to be analysed.
Where the position is unclear, the competent authority in the canton where the property is located determines whether the transaction requires authorisation.
Can foreigners buy hotels in Switzerland?
Hotels are particularly interesting for international investors because genuine hotel operations are generally regarded as commercial establishments.
The Federal Office of Justice expressly lists hotels among the examples of commercial real estate that may qualify for the permanent-business-establishment exemption.
However, investors should distinguish a genuine hotel operation from projects involving:
- privately owned holiday apartments
- serviced residential units
- aparthotel ownership structures
- substantial residential components
Those structures can raise very different Lex Koller questions.
Can a foreign investor obtain a Swiss mortgage?
Potentially, yes.
But two separate questions must be distinguished:
- Is the investor legally permitted to acquire the property?
- Is a bank willing to finance the transaction?
A Swiss bank considering commercial real estate financing may examine factors including:
- identity and residence of the investor
- source of wealth
- source of funds
- ownership structure
- property valuation
- location
- rental income
- tenant quality
- lease duration
- vacancy rate
- debt-service capacity
- equity contribution
- the investor's wider banking relationship
For international investors, financing should therefore be considered at an early stage rather than only after a purchase property has been selected.
What should a foreign investor check before buying Swiss commercial property?
A commercial real estate acquisition should normally include legal, financial, tax and technical due diligence.
Land register
The Swiss land register provides important information about ownership and rights affecting the property.
These may include easements, mortgages and other registered rights.
Existing leases
For an income-producing property, the lease portfolio may be just as important as the building itself.
The investor should examine matters including:
- current rent
- lease duration
- termination rights
- rent indexation
- tenant guarantees
- outstanding rent
- vacancies
- concentration of rental income among major tenants
Zoning and permitted use
A property's current use does not necessarily guarantee that every future use will be permitted.
Planning and zoning should therefore be reviewed before acquisition.
Technical condition
The purchase price alone does not determine the investment return.
Future renovation requirements, energy upgrades and deferred maintenance can materially affect the economics of the investment.
Environmental risks
Former industrial and manufacturing properties may require additional environmental investigation.
Tax
Swiss real estate taxation is strongly influenced by the canton and municipality in which the property is located.
Transaction taxes, land-register costs, taxation of rental income and taxation on a later disposal can therefore differ significantly between locations.
Should I buy the property or the company that owns it?
International investors sometimes have a second possibility.
Instead of acquiring the property directly in an asset deal, they may consider acquiring shares in the company that owns the property.
These two transactions are not economically or legally identical.
A share deal may have different consequences regarding:
- taxes
- transaction costs
- financing
- historic liabilities
- corporate liabilities
- due diligence
- future disposal
A particularly important principle applies:
When you buy a company, you may also buy its history.
The property may be attractive while the company holding it has tax, contractual, financing or other historical exposures.
A share deal therefore requires due diligence on both the real estate and the company.
What is different about Switzerland compared with other countries?
Foreign investors frequently arrive with assumptions developed in markets such as the United Kingdom, the United States, Dubai or other European jurisdictions.
Switzerland has several characteristics that can be unexpected.
Commercial and residential property are treated very differently
A foreign investor may potentially acquire a substantial Swiss office property while facing significant restrictions on purchasing a comparatively small residential investment property.
A Swiss company does not automatically remove foreign-investment restrictions
The ownership and control of the company can matter.
The canton matters
Switzerland has federal real estate legislation, but taxation, procedures, competent authorities and transaction costs are also strongly influenced by the canton.
The same investment structure may therefore produce different economic results depending on whether the property is located in Zurich, Schwyz, Zug, Geneva, Vaud, Ticino or another canton.
Buying property does not buy residency
Unlike certain international investment-residence programmes, Switzerland does not grant residence simply because someone purchases real estate.
The advertised yield is not the complete investment return
International investors should distinguish headline rental yield from actual return after:
- financing
- taxes
- vacancies
- maintenance
- capital expenditure
- administration
- transaction costs
- eventual exit taxation
These factors should ideally be analysed before the investor commits to a property.
Is Lex Koller currently changing?
Potentially.
In April 2026, the Swiss Federal Council opened a consultation on proposals to further restrict certain acquisitions of Swiss property by persons abroad.
The proposed changes particularly concern residential and holiday-property areas.
A legislative proposal or consultation should not, however, be confused with current law.
For an acquisition taking place today, the transaction must be analysed under the rules currently in force, while material pending legislative developments should also be monitored.
How can Alpine Capital assist?
Alpine Capital and Alpine Properties work with international entrepreneurs, investors and families considering investments in Switzerland.
For a commercial real estate acquisition, our work can begin before a particular property has been selected.
We can assist with:
- defining the investment and acquisition profile
- identifying suitable Swiss commercial properties
- selected direct and off-market opportunities
- preliminary assessment of foreign-purchaser restrictions
- Swiss company formation where appropriate
- acquisition and ownership structuring
- coordination with legal and tax specialists
- Swiss banking and financing preparation
- due diligence coordination
- transaction coordination
- establishment of the Swiss corporate and administrative infrastructure required after acquisition
For a foreign investor, the first question should therefore not necessarily be:
"Which property should I buy?"
The better questions are:
"What am I legally able to acquire?"
"How should I own it?"
"How should it be financed?"
Only after these questions have been answered does the property search become properly defined.
Official sources and legal framework
Swiss Federal Office of Justice — Acquisition of property by foreign non-residents https://www.bj.admin.ch/en/acquisition-of-property-by-foreign-non-residents
Swiss Federal Office of Justice — Questions and answers on Lex Koller https://www.bj.admin.ch/en/questions-and-answers
Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents (ANRA / Lex Koller) SR 211.412.41
Ordinance on the Acquisition of Immovable Property by Persons Abroad SR 211.412.411
Swiss Federal Tax Administration https://www.estv.admin.ch/
Swiss Federal Office of Justice — Revision Lex Koller, 15 April 2026 https://www.bj.admin.ch/de/revision-lex-koller
The competent cantonal authority ultimately determines whether a specific acquisition by a person abroad requires authorisation. Each transaction should therefore be assessed on its individual facts.
Planning a commercial property acquisition in Switzerland?
If you are considering acquiring Swiss offices, retail property, logistics facilities, a hotel, mixed-use real estate or another commercial investment, Alpine Capital can assess the proposed structure before you commit to the transaction.
Contact Alpine Capital to discuss the intended acquisition, investment structure, financing requirements and next steps.