Key Elements of the LFAIE Law

Before embarking on the purchase of a property in Switzerland, a detailed understanding of the LFAIE (Federal Law on the Acquisition of Real Estate by Persons Abroad) is essential. This law, implemented to regulate the purchase of real estate by foreigners, aims to preserve the stability of the real estate market and protect national interests. It comprises several essential aspects that are important to master before making an investment.

Here are the key elements of the LFAIE law to guide you in your investment:

Preliminary Authorizations

As its name suggests, this federal law applies throughout the country. Before starting your transaction, it is imperative to consult an expert like Luxury Places to understand the specific requirements of the region where you wish to purchase.

Types of Properties Concerned 

The LFAIE primarily targets residential properties and buildable land.

Regional Restrictions – Lex Weber Law 

There is a second law, called the Federal Law on Secondary Residences (LRS) or "Lex Weber," which limits secondary residences to 20% per municipality, regardless of the nationality and primary residence of the buyer. Additionally, several cantons have implemented quotas on the number of properties that can be purchased by foreigners, in order to balance real estate development and protect the environment.