There are several restrictions and barriers to consider before you buy property as a foreigner in Switzerland.
If you are a foreign buyer and you do not currently have a residence permit and no other links to Switzerland, you will only be able to buy property in certain cantons and under certain conditions. Generally speaking, foreigners can buy holiday homes in Switzerland, but only in certain "holiday" regions, which essentially means in certain ski resorts only. Even then, broad differences apply from place to place, with some areas being more flexible than others. Verbier has comparatively few restrictions, while Zermatt heavily regulates foreign non-Swiss resident ownership, for example. Furthermore, as a foreigner without a residence permit, the regulations mean buying property outside of this designated region or in the main cities and hubs – Bern, Basel, Zürich, Geneva, Lausanne, Lucerne and Zug will generally be impossible.
Foreign ownership of holiday homes falls under Switzerland’s Lex Koller legislation, which effectively sets a quota of foreigners who can live or purchase property in Switzerland. Cantons (similar to states in the US or counties in the UK) in Switzerland can operate relatively autonomously from the Swiss Federal Council, which means that rules can vary across the country. It's important to note that if you are granted permission to buy a holiday property in Switzerland, you can spend periods of time in the country as the owner of a holiday home, but you don't automatically qualify as a resident or benefit from other aspects of Swiss residency.
The Lex Koller laws will also restrict the size of property you can purchase under the rules for foreign buyers of holiday homes. You will be able to buy a property of up to 200 m2 of "liveable" space, although this excludes areas like balconies and the basements standard in most Swiss property.
There are exceptions to these Lex Koller rules, but they tend to be few and far between. To apply to buy outside of a holiday region as a foreigner, you will need to work with local Swiss lawyers who will review your situation and assess if you have circumstances that may warrant an exception. The relevant canton will review any such submission on a case-by-case basis. Very specific or compelling reasons will need to be put forward to persuade the authorities you have a good reason to allow you to buy outside of a holiday region.
While the rules allowing foreigners to buy holiday homes can narrow your options when it comes to buying a home in Switzerland, it can be helpful to remember that the process helps retain the long-term attraction of the country from a property perspective. In essence, authorities maintain a stronghold over who can buy in the country, which allows Switzerland to retain its safety and privacy record, which is part of why the country is so popular in the first place. The process also means Swiss resorts maintain their charm, uniquely Swiss feel, and a thriving local population. In turn, this ensures the longevity and enduring magnetism of mountain resorts. There are unlikely to be significant challenges for most foreigners that mean that you cannot purchase a holiday home in Switzerland. The approval process undoubtedly adds a layer of complexity, but in true Swiss style, you are likely to find that the Swiss authorities are pragmatic and helpful in your application.
Andermatt in the canton of Uri is a notable exception to the rules that restrict foreign ownership of Swiss holiday homes. You can buy property in the region as a foreigner without needing permission or a residence permit. Ownership in Andermatt is also free of most of the restrictions that would be applicable in other cantons under the Lex Koller regulations.
It's also worth noting that commissioning a new build as a foreigner can be challenging, even in the designated 'holiday' areas in which you are allowed to buy. Under Swiss law, construction of new second homes in towns or areas where more than 20% of properties are second homes is no longer allowed. If you want to purchase a property in some of Switzerland's better-known or more famous ski resorts, you'll usually find that this quota has already been hit. As a result, you'll generally need to consider purchasing an existing property if you wish to buy.
If you are foreign but live in Switzerland and have a residence permit, you can generally buy property anywhere in Switzerland as a non-Swiss citizen. Depending on your nationality (there are sometimes varying rules for EU/EFTA and non-EU/EFTA citizens even if you have a standard B or C permit), this leaves the door open to purchase secondary residences in Switzerland. As a result, you may also be able to build a property portfolio for investment purposes.