Switzerland remains an attractive destination for international families investing in real estate. However, such investments are governed by a specific regulatory framework, commonly known as the Lex Koller, which restricts the acquisition of Swiss property by foreign persons. The interaction between these rules and international trust structures requires careful attention.
A recent decision of the Swiss Federal Supreme Court has reaffirmed the breadth of these restrictions. In its judgment of 5 February 2026, the Court ruled that the transfer of a holiday property owned by a British national in Grindelwald to a family trust governed by New York law required authorisation under the Lex Koller.
The Court emphasised that the authorisation regime is intentionally broad and that the statutory exceptions allowing transfers within the family do not extend to trust structures. While direct transfers between spouses or between parents and children may in certain circumstances proceed without authorisation, the interposition of a trust changes the legal analysis and triggers the regulatory framework.
The judgment also reiterates how trusts are interpreted under Swiss law. Although a trust does not have legal personality, the trustee is considered the legal owner of the trust assets. Consequently, transactions involving trust property are assessed under the Lex Koller as acquisitions by the trustee, which may require authorisation when foreign persons are involved.
For international families, this decision serves as an important reminder that estate planning involving Swiss real estate cannot be approached solely from the perspective of foreign trust law. Structures that function well in other jurisdictions may produce unintended consequences when applied to Swiss property.
In this context, familiarity with both trust structuring and the regulatory subtleties of the Lex Koller is essential. Geneva Trust assists international families and their advisers in navigating these complexities, ensuring that estate planning structures remain consistent with Swiss legal and regulatory requirements while preserving long term planning objectives.
