Indirect acquisition of real estate
The indirect acquisition of real estate by persons abroad is also subject to restrictions. Such an acquisition is deemed applicable if persons abroad acquire interests in real estate companies or real estate investment funds. Indirect acquisition of real estate may also be subject to authorisation.
The obligation to obtain approval shall not apply if share certificates of real estate investment funds are regularly traded in the market. If share certificates are not regularly traded, and the share in the plots of land for residential property account for more than one third of the assets, the acquisition of shares shall be subject to approval.
A distinction is made between three types in the case of acquisition of shares in real estate companies:
- non-listed shares in real estate companies: the acquisition of shares in a legal person, the object of which is the acquisition of residential plots of land in Switzerland (so-called residential real estate company) that are not listed in a Swiss stock exchange is subject to authorisation.
- listed shares in real estate companies: due to an amendment to the law that came into force on 1 April 2005, the acquisition of shares in residential real estate companies by persons abroad is not subject to authorisation if the shares are listed in a Swiss stock exchange.
- Holding companies: in respect of the obligation to obtain authorisation, the entire Group is considered a uniform company. If the Group’s real estate properties in Switzerland that are subject to approval account for more than a third of its entire assets as a real estate company, the acquisition of shares shall be subject to approval.
