Bern: The Swiss government announced its intention to impose stricter regulations on property acquisitions by foreigners, amidst a growing housing shortage in the country. The proposed measures, currently under consultation until July 15, aim to limit property purchases by nationals from outside the European Union (EU) and the European Free Trade Association (EFTA), requiring them to obtain authorization for buying a primary residence in Switzerland.

According to Anadolu Agency, the Federal Council specified that foreign owners must sell their properties within two years if they relocate from Switzerland. Additionally, the government plans to implement more stringent rules for foreign acquisitions of commercial real estate, with exceptions granted only if the foreign buyer directly operates the business.

The proposed regulations also include reducing annual quotas for vacation home and apartment hotel purchases in Swiss cantons, along with mandating authorization for transactions between foreign buyers. Furthermore, the government intends to revoke the general permission for foreigners to acquire shares in listed residential real estate companies and specific real estate funds.

These changes are meant to realign the Lex Koller law with its original objectives. Introduced in 1983, the Lex Koller law governs foreign property ownership in Switzerland, aiming to prevent excessive foreign control, curb speculation, and maintain affordable housing for Swiss residents. The government's initiative is part of a broader effort to reject the "No to ten million Switzerland" popular initiative, which seeks to limit immigration and is slated for a nationwide vote on June 14.