Switzerland: Home Sweet Home? – New Secondary Home Act

Last Updated: 5 May 2015
Article by Michael Fischer, Samuel Ramp and Sara Müller

On 11 March 2012 the Swiss population voted in favour of legislation imposing limits on the construction of new secondary homes by a thin majority. Pending the introduction of formal statutory legislation the construction of new secondary homes has been regulated by a government ordinance (Ordinance).

Last week, the Swiss parliament debated on the draft Secondary Home Act (Act) aimed at replacing the Ordinance. The Act is expected to come into force on 1 January 2016.

Restriction of construction of new secondary homes

The Act imposes restrictions on secondary homes at communal level, both in terms of numbers as in aggregate surface:

  • any commune may only have a maximum of 20 % in secondary homes;
  • the combined gross surface of secondary homes per commune may amount to a maximum of 20 % of the combined gross surfaces of all housing units.

These restrictions were contained in the Ordinance already and have now been taken over into the Act.

Any apartment not qualifying as "principal residence" is a "secondary home"

"Principal residences" are defined in the Act. The qualification requires use by at least one individual registered as resident in the commune where the apartment is located. "Residence" is permanent presence with the intention of establishing the centre of one's life.

By default, any apartment that does not qualify as principal residence will be deemed a "secondary home", typically that applies to holiday apartments.

For an apartment to qualify as "deemed principal residence" it needs to be used by individuals for professional or educational purposes. Empty flats will also be considered "deemed principal residence" provided they have been unused for less than a year, are habitable and available for permanent rent or purchase. "Deemed principal residences" also include apartments for short-term-use by professional staff or as temporary residence for individuals in the hotel, medical or old age homes industry.

Exceptions to the general rule

  • New secondary homes inside residential zones
    In buildings registered as listed monument, communes otherwise with a secondary home quota exceeding 20 % are under the obligation to approve the construction of new secondary homes, provided always the building cannot be conserved in any other way and its architectural value is not compromised (in particular in terms of appearance and structure). In addition, there must not be any prevailing contrary private or public interests.
  • New secondary homes outside residential zones
    In buildings outside the residential zones that are of particular value to the landscape (ortsbildprägend) it is possible to build new secondary homes, always to the extent permitted under planning legislation.
  • Conversion, renovation and extension of existing secondary homes
    Pursuant to the Ordinance and now also under the Act, apartments built or authorised as at 11 March 2012 (so-called "old legislation residences") may be converted from principal residence into secondary home or the other way round.

    In addition, under the Act it will be permissible to convert, renovate or extend old legislation residences.

    In addition, the surface of old legislation residences may be increased by up to 30 % provided the apartment in question qualifies as principal residence or so called touristic apartment (see below). The extension of an "ordinary" secondary home will no longer be possible under the Act.
  • Touristic apartments
    As under the Ordinance, communes will have to authorise the construction of new secondary homes if they are used as "tourist apartments".

    "Tourist apartments" must be offered to the public on a permanent basis for short-term-use and they must be located in the owner's property or exploited as "structured accommodation business" (strukturierte Beherbungsbetriebe).

    To qualify as structured accommodation business, a hotel-like operational concept including minimal infrastructure such as a reception are required and the operations must have a minimum size. Apartments offered for use or rent on an online platform will not qualify.
  • Specific rules with regard to hotels and structured accommodation businesses
    By way of exception, secondary homes may also be authorised to the extent they serve cross financing of accommodation businesses that would otherwise not be sufficiently viable.

    The exception is available only if the accommodation operations remain the main activity. The surface of secondary homes used for cross financing purposes may not exceed 20 % of the overall surface of the business being cross financed.

    To the extent a structured accommodation business has been in existence for 25 years or more on 11 March 2012 the quota of secondary homes used for cross-financing may be raised to 50 % if otherwise the operations could no longer be continued for economic reasons.

Conclusion

The Act imposes substantial restrictions on the building of new secondary homes. As a general rule, it will no longer be possible to obtain a construction permit for a holiday home in a particular commune if the ratio of its secondary homes exceeds 20 %. That said, in particular in listed buildings or in buildings of particular value to the landscape new holiday homes may still be built.

Owners of existing holiday homes will be in a better position under the Act than they were pursuant to the Ordinance as they will have quite some latitude to renovate, convert and even extend the surface of their existing apartments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions