Lex Weber Explained: Second Homes in Switzerland

The origin of Lex Weber

Lex Weber — formally the Federal Act on Second Homes (Loi sur les résidences secondaires, LRS) — was introduced following a popular initiative led by environmentalist Franz Weber. The initiative passed with 50.6 percent of the vote in March 2012, making it one of the closest referendums in Swiss history. The implementing legislation came into force on 1 January 2016.

The law was a response to the proliferation of "cold beds" — second homes that sat empty for most of the year — in Swiss mountain and resort communities. In some municipalities, secondary residences accounted for more than 70 percent of the housing stock, hollowing out local communities and driving up property prices for residents.

What the law does

Lex Weber prohibits the construction of new secondary residences in any municipality where secondary residences already account for 20 percent or more of the total housing stock. Municipalities above the 20 percent threshold are designated as "restricted municipalities" (communes soumises à restriction).

In restricted municipalities, new residential construction is only permitted if the resulting property will be used as a primary residence. New-build holiday homes and investment properties intended as secondary residences are not permitted.

What Lex Weber does not do

Lex Weber does not prohibit the sale or purchase of existing secondary residences. Properties that were already classified as secondary residences before the law came into force can be bought and sold freely — they retain their secondary residence status through ownership changes.

The law also does not prevent the renovation or extension of existing secondary residences, within the limits of planning permission. Owners can maintain and improve their properties without triggering Lex Weber restrictions.

Impact on the Montreux market

Montreux is a restricted municipality under Lex Weber — its secondary residence proportion exceeds 20 percent. This means no new secondary residences can be built in Montreux. The supply of secondary residences is therefore fixed at the existing stock, with no new units entering the market through new construction.

This supply constraint has supported property values in Montreux. Existing secondary residences — particularly those with Foreign Buyer Eligible status under Lex Koller — are a finite and sought-after asset class.

Key points

• Lex Weber caps secondary residences at 20% of total housing stock per municipality
• Municipalities above 20% cannot build new secondary residences
• Montreux is a restricted municipality — no new second homes can be built
• Existing secondary residences can be bought, sold and renovated freely
• The supply constraint supports values for existing secondary residences