When does expropriation occur and how can you defend yourself?
ResourcesguideConstruction and Real Estate LawWhen does expropriation occur and how can you defe...
Construction and Real Estate Law 
5 min. Lesedauer
04. September 2025In Switzerland, private property enjoys special protection – the right to it is even enshrined in the Federal Constitution as a fundamental right. Expropriation may be necessary and permissible in some cases, but should always be a last resort. As a property owner, you have certain rights in this case. This article explains when you can defend yourself against expropriation and when you are entitled to compensation.
What exactly is expropriation?
Expropriation occurs when property is transferred from the original owner to another owner—usually the state. Expropriation also occurs when a person’s land or real estate is altered in such a way that it becomes unusable or at least loses value. A distinction is therefore made between two different types of expropriation:
- Formal expropriation: In this case, all or part of the property, land, or real estate is taken from the owner. Ownership is then transferred to another party, usually the state.
- Material expropriation: In this type of expropriation, the property remains in the possession of the original owner but is altered (e.g., through rezoning or downzoning). This usually severely restricts its use, often resulting in a decrease in value or even rendering the property useless for the owner. A good example of this is when a building is listed as a historic monument.
Private property is extremely well protected in Switzerland. Article 26 of the Federal Constitution (BV) is one of the fundamental rights and states that every person’s right to property is guaranteed. Therefore, landowners and property owners do not have to simply accept expropriation in every case. They are almost always entitled to compensation, and they can also defend themselves against unlawful expropriations.
Why is expropriation sometimes necessary?
Population growth, rising demands, and limited building land availability can all lead to the need for expropriation. For example, agricultural land may be converted from a non-building zone into a building zone. Infrastructure changes can also necessitate expropriation.
Some of the most common reasons for expropriation are the construction of new transport routes. The construction of new roads or railway lines, for example, can lead to the expropriation of private property.
Renaturation or nature conservation in general can also lead to the expropriation of private property. For example, some laws stipulate the renaturalization of streams – where they previously flowed in a channel, a stream bed must now be excavated instead.
In any case, expropriation must be carried out in the public interest. This could be environmental protection, for example, or sociopolitical or general economic concerns. None of this is clearly formulated in the law; therefore, in disputes, the specific situation usually has to be examined and decided on an individual basis. However, expropriation cannot be carried out without important and permissible reasons.
Legal basis for expropriation
The guarantee of and the right to property are enshrined in the Basic Law. These principles are firmly anchored in the Federal Constitution and apply to all Swiss citizens. Expropriation therefore constitutes a restriction of a fundamental right – for this reason, the process must be absolutely justified. In addition to the Federal Constitution, there is also the Federal Expropriation Act (Expropriation Act). This contains all the legal bases for how expropriation should proceed and other important details.
In general, the right of expropriation lies with the federal government. However, it can delegate this right to third parties, such as cantons or municipalities (see Article 2 Expropriation Act). Both the Expropriation Act (Article 1 Expropriation Act) and the Federal Constitution (Article 36 Federal Constitution) stipulate the requirements for permissible expropriation. Accordingly, the following four points must be met:
- There must be a legal basis in federal or cantonal law: For minor restrictions, an ordinance may suffice. An exception exists only in cases of serious, immediate, and unavoidable danger.
- There is a public interest in expropriation, or the protection of the fundamental rights of third parties requires expropriation: According to the Federal Constitution, this may be the interests of the Confederation or large parts of the country. Other purposes in the public interest may also justify expropriation (e.g., socio-political, general economic, or environmental protection).
- There must be a legal basis in federal or cantonal law: For minor restrictions, an ordinance may suffice.
- Expropriation is proportionate: Expropriation is the only way to achieve the goal. It should only be carried out to the extent absolutely necessary.
Expropriation should always be the last resort to achieve the stated goal. Private property is worthy of protection, which is why it must be handled carefully. In general, the number of expropriations in Switzerland is assumed to be low – but this does not mean that the scenario is impossible.
When is compensation due in the event of expropriation?
The property guarantee established in the Federal Constitution is accompanied by a so-called value guarantee. According to Article 16 of the Expropriation Act, expropriation can only occur if the expropriated person is fully compensated. Accordingly, the following components must be considered when calculating the amount of compensation:
- The full market value of the expropriated land
- Depreciation of the adjacent property parts not expropriated
- Disadvantages resulting from the expropriation for the expropriated person
The amount of the compensation is usually decided by the responsible valuation commission. Compensation is paid as a lump sum or on a recurring basis. Alternatively, payments in kind are also possible – if the expropriated person agrees. For example, a replacement property can be offered.
Exceptions may be made if the reduction in value is minimal or nonexistent. This can be the case with a material expropriation, where the expropriation process results in virtually no change to the existing condition.
In the case of a rezoning or downzoning, for example, it may depend on whether the property previously belonged to a zone. In such cases, expropriated persons are generally entitled to compensation – although in some exceptional cases, they are not. Incorrect land-use plans, in which the building area is not properly demarcated from the rest of the property, can prevent this. And outdated land-use plans from before 1980 can also cause problems.
Can one defend oneself against expropriation?
Particularly in the case of projects such as road construction, a planning permit application or a public plan publication is published. The affected property owners can respond to this and file an objection – within a certain period of time. However, the expropriator must also send a copy to each apparent expropriator before publication, specifying exactly what is to be expropriated.
The responsible authority then usually attempts to reach an agreement. A compensation amount is offered in return. If the affected parties accept this offer, the expropriation can proceed. If no agreement is reached, legal proceedings may be initiated. In some cases, expropriated parties also have the opportunity to file an appeal afterward. In any case, a lawyer can help you assert your claims or take legal action against an unlawful expropriation.
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FAQ: Expropriation
In the event of expropriation, ownership or rights thereto are transferred from the original owner to the state, canton or municipality.
No, sometimes expropriation is “only” linked to the loss of value of a piece of land or real estate. Only in the case of formal expropriation does ownership pass to a third party – usually the state, canton, or municipality.
In the case of physical expropriation, the property remains in the possession of the expropriated party. However, its characteristics or the rights of the person change—as a result, the value of the property or the affected real estate usually decreases.
Private property is particularly protected in Switzerland, and the guarantee of property is one of the fundamental rights. In the course of expropriation, a person loses their land or property or at least has to live with a loss in value.
Yes, compensation is due if the property is subject to a loss of value for those expropriated. Only in cases of very minor or virtually nonexistent impairments may compensation be waived.
The amount of compensation is based on the market value of the expropriated land. Disadvantages resulting from the expropriation must also be compensated. The responsible valuation commission is responsible for assessing the amounts.
An objection can usually be lodged against an expropriation. The responsible authority will then attempt to reach an agreement with the affected person. A permissible expropriation is usually irreversible.
