Buying a vacation home in Switzerland

Buying a vacation property in Switzerland means you get a great place to spend your free time and a solid investment. Being able to enjoy your vacation property while simultaneously profiting from its increase in value is certainly a very attractive prospect. However, there are strict legal requirements that you must comply with when you buy a second home in Switzerland.

Overview of legal requirements and usage regulations

The purchase of second homes in Switzerland has been strictly limited since the introduction of the second homes initiative in 2012. Communities where more than 20% of homes are second homes cannot approve any additional second homes. What this means for buyers:

• Buyers have to focus on existing vacation homes (new construction of second homes is no longer allowed)
• Buyers have to focus on communities that are below the 20% limit
• Buyers will need to bear in mind that there are regional differences when it comes to approvals

These regulations are intended to protect mountain regions and limit overexploitation.

There are also clear regulations governing the use of these properties:

• Long-term renting and commercial use are generally not permitted
• Short-term rentals (e.g., Airbnb) are subject to different regulations in various cantons
• Condominiums may come with additional obligations.

Can foreigners buy holiday homes in Switzerland?

Foreigners can buy holiday homes in Switzerland in principle, however in practice, such purchases are strictly regulated by the Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents (known as the “Lex Koller” law). The following conditions apply to foreign buyers:

• Purchases are only permitted in approved communities (tourist areas)
• Official approval from the cantonal authorities is required
• There are restrictions on living space (approx. 200 m² net)
• Usage is also regulated, for example, there are restrictions on renting out properties and transferring ownership