Lex Koller stems from the desire to control the sale of land and residential property to persons abroad. The assumption behind this is that land is a non-renewable resource and therefore particularly worthy of state protection. In the 1970s, the increasing purchase of second homes by foreigners led to political pressure, especially in regions attractive to tourists. The Lex Friedrich (1983, enacted on 1 January 1985) and later the Lex Koller (revised in 1997) institutionalised these concerns in the form of legislation.
"Average yields in Zurich are lower than in Monaco"
Over time, the reality of the real estate market changed. Foreign acquisitions became increasingly professionalized, structured through legal entities, trust arrangements, or multi-tiered ownership chains, all of which are now examined before a transaction to assess whether they might result in significant foreign control.
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