The Swiss Government has asked Parliament not to abolish the law of Lex Koller, limiting the right of foreigners to buy property in Switzerland, reports ee24.com citing nashagazeta.ch.
Upheld the law implies that in each canton a limit on the number of objects that can be sold to foreign nationals will be set. The limit is set at 1,500 units a year. The restrictions only apply to the second residences that are not the main housing for foreigners. In addition, the concept of "foreigner" is not determined by the passport, but by the place of permanent residence.
The law of Lex Koller, whose main purpose is to "avoid gripping the Swiss foreign land" was adopted in 1983 and was later amended in 1997, and in 2005 the government proposed to cancel it due to the fact that it has obstructed the development of the tourism sector in the country.
However, after the 2008 financial crisis, the interest of foreign investors in the Swiss real estate is growing again, which, according to the Swiss government, makes the law of Lex Koller an excellent mean to reduce the demand for property for the protection of the Swiss economy.