Can I bequeath my house to my niece in France?

I (male) am married and childless. My niece lives with her family in France, near the Swiss border. I would like to bequeath my house in the city of Lucerne to her as a thank you for her years of care. Can I do that?

The Federal Act on the Acquisition of Real Estate by Foreign Persons (BewG; known as "Lex Friedrich") restricts the ability of foreign persons to acquire real estate. The "Lex Friedrich" also needs to be considered in the context of inheritance:

a) If your niece is Swiss or holds dual citizenship with Switzerland while residing in France, she may inherit your house regardless of her residence, just as if she were a resident in Switzerland.

b) If she holds other citizenship (including EU/EFTA), your niece is considered a foreigner residing abroad. In this case, the acquisition (including via inheritance) is generally subject to a permit requirement.

c) According to Article 7 of the BewG, legal heirs under Swiss law are generally exempt from the permit requirement when acquiring property that is part of the estate. The law is "lenient" in this respect, recognizing not only those in direct line of inheritance (such as spouses and/or descendants) but also other relatives of the deceased if they are designated as heirs or legatees. If your niece is a biological or adopted daughter of one of your siblings, you may therefore be able to bequeath the house to her without requiring a permit.

d) However, if your niece is the daughter of your sister-in-law or brother-in-law (i.e., related to your wife but not directly blood-related to you), she can only inherit the house with a permit, even if you designate her as an heir or legatee. Depending on the circumstances, your niece may attempt to assert a different basis for the permit (e.g., second home, charitable purpose, etc.) or demonstrate a close, deserving relationship with your house. Such a special relationship may be recognized if your niece has lived with you in the house for an extended period or frequently spent weekends there, or at least vacationed with you. In the Canton of Lucerne, the possibility of acquiring it as a second home would be examined if your niece maintains a very close, deserving relationship with Lucerne that is still ongoing. In such cases, it is crucial whether the inheriting person maintains significant economic, scientific, cultural, or other interests in the area that necessitate personal presence. Mere study or vacation stays, however, are insufficient for a permit as a second home.

e) If your niece is unable to establish a basis for a permit or an exemption from the permit requirement, she may still acquire the house but would be obligated to sell it within two years. This obligation is usually noted in the land register.

If you are grappling with similar questions, if your future heirs live abroad, or if you want to carefully plan the allocation of your property to specific individuals, we are happy to assist you. Please feel free to ask us!

Lucerne, June 19, 2020

Reto Marbacher