Switzerland plans stricter rules for real estate purchases by foreigners

ZURICH, - The Swiss government on Wednesday said ​it wants to ​tighten rules that restrict the purchase of ​real estate in the country by foreigners amid concern over housing shortages and an upcoming referendum on whether to ‌limit the ⁠population.

The ⁠governing Federal Council said in a statement it ​wants to amend the so-called "Lex Koller" law that limits foreign ownership ​of Swiss real estate, and would hold consultations on the proposed changes that will run ​until mid-July.

Under the proposals, citizens ⁠of countries ‌that are not members of the ​European Union ​or the European Free Trade Association ⁠will need to obtain permits to buy ​main residences and must sell them within ​two years if they leave Switzerland.

The proposals also envisage barring such nationals from acquiring commercial real estate purely for rental or investment ends. Purchase of holiday homes would be ‌curbed by cutting cantonal permit quotas and tightening resale rules, they state.

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Switzerland's higher ​living standards, ​strong corporate landscape ⁠and job creation have helped encourage immigration, feeding concerns that public infrastructure is being stretched.

In June, the ​Swiss will vote on a proposal that aims to stop the permanent resident population exceeding 10 million by 2050. The Federal Council has urged voters to reject the proposal.