SWITZERLAND Law and Practice Contributed by: Francis Nordmann, Johannes Bürgi, Christian Eichenberger, André Kuhn and Sabrina Kunz, Walder Wyss Ltd
1. General 1.1 Main Sources of Law
2. Sale and Purchase 2.1 Categories of Property Rights The categories of property rights that can be acquired are: • freehold; • leasehold; • co-ownership; and • storey-ownership rights. 2.2 Laws Applicable to Transfer of Title Transfer of title is primarily regulated by the Swiss Civil Code and the Federal Ordinance of Land Registry. The transfer of residential real estate to any foreign person is generally restricted, according to the Federal Law on the Acquisition of Real Estate by Persons Abroad (the Lex Koller). Tax issues also have to be considered, although these differ from canton to canton. 2.3 Effecting Lawful and Proper Transfer of Title The transfer of real estate is registered at the compe - tent land registry. Any buyer of real estate acting in good faith is protected by the information contained in the land registry, so no title insurance is required in Switzerland. 2.4 Real Estate Due Diligence As registration is conclusive, legal due diligence involves analysing the land register extract and its supporting documents, which show all relevant prop - erty information. In addition, any existing leases must be examined, since these are transferred to the buyer as the new landlord upon the purchase of the prop - erty. Another aspect of due diligence relates to envi - ronmental law. In addition to legal due diligence, prudent buyers also perform tax, technical and financial due diligence. If a foreign person buys property that includes real estate that is not commercial property or provides for rel - evant land reserves, it must be verified that there is no infringement of the Lex Koller. This type of purchase can be deemed void, since the Lex Koller restricts foreign persons from buying residential and other non-commercial real estate in Switzerland. Financing
The main sources of real estate law in Switzerland are the Swiss Civil Code and the Swiss Code of Obliga - tions. 1.2 Main Market Trends and Deals Following a gradual decline in inflation and corre - sponding interest rate cuts, Switzerland’s real estate industry regained momentum throughout 2024 and 2025, with prices stabilising or increasing. As a result, transaction volumes significantly increased in the second half of 2024 and remained resilient into early 2026, supported by improved investor sentiment and increased liquidity. The purchase of Credit Suisse by UBS continues to shape the financing landscape. Lending conditions remain comparatively restrictive, with higher margins partly driven by Basel III capital requirements and ongoing regulatory scrutiny. This offered new oppor - tunities for mezzanine financing. AI is significantly accelerating data centre develop - ment in Switzerland, positioning them as a high-growth segment within real estate. Driven by hyperscalers like Microsoft and Google expanding AI infrastructure, new facilities are under construction to meet surging power demands. These assets offer attractive yields but face challenges from electricity constraints and regulatory hurdles, marking a shift toward specialised There are currently no major federal reforms enacted that fundamentally alter the real estate sector, though several key developments are progressing. The abo - lition of the imputed rental value ( Eigenmietwert ), approved by Swiss voters in September 2025, will become effective on 1 January 2029. Implementation details remain under development at cantonal level. Furthermore, the Federal Council has initiated a public consultation in April 2026 to tighten Lex Koller restric - tions on foreign property acquisitions. tech-enabled investments. 1.3 Proposals for Reform
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