The Swiss government is preparing to clamp down on foreigners buying real estate in the country due to concerns over housing shortages.
The Federal Council plans to amend the Lex Koller law that limits foreign ownership of Swiss real estate, with consultations on the proposed changes set to run until mid-July, Reuters reports.
Under the proposals, citizens of countries that are not members of the European Union or the European Free Trade Association will need permits to buy main residences and must sell them within two years if they leave Switzerland.
The proposals will also aim to restrict foreigners from acquiring commercial real estate for rental or investment purposes while reductions in the cantonal permit quotas would limit foreigners’ purchase of holiday homes.
The consultation comes ahead of the upcoming Swiss referendum on a proposal that aims to stop the permanent resident population exceeding 10 million by 2050, which the Federal Council is urging voters to reject.
