In Switzerland, the Lex Koller law restricts property access for non-resident foreigners to combat the housing crisis. This law served as the basis for Luxembourg's experts' analysis. Facing a housing demand far exceeding supply, Luxembourg is seeking solutions to resolve the crisis.
Experts from the Chamber of Deputies point out that although Lex Koller has stabilized the Swiss housing market, it was not the decisive factor in this stability. Purchase permits for foreigners are relatively easy to obtain, especially for EU citizens, which tempers the law's effectiveness.
The analysis indicates that Lex Koller did not prevent the formation of a speculative bubble in Switzerland in the 1990s. Moreover, the correlation between immigration and rising real estate prices, assumed by the law, is becoming less valid over time.
Experts believe that adopting a similar law in Luxembourg would pose legal challenges, particularly regarding the free movement of capital and contractual freedom enshrined in the Civil Code. Additionally, the ownership of buildable land by a limited number of owners is identified as a major cause of the housing shortage in Luxembourg.
The authors note that the acquisition of real estate by non-residents is not the primary cause of the crisis in Luxembourg. On the contrary, foreign investments stimulate the economy. Land reform projects under discussion in Parliament aim to discourage the speculative holding of vacant housing through fiscal measures, affecting both local and foreign owners.
A Luxembourg law inspired by Lex Koller would likely not solve the housing crisis. Experts conclude that the solution lies in land and tax reforms that encourage the mobilization of buildable land and the reduction of vacant homes held for speculative purposes.
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