PPE (propriété par étages) is the legal ownership structure used for the vast majority of apartments in Switzerland. It is the Swiss equivalent of strata title, condominium ownership or leasehold flat ownership in other countries — but with important differences that buyers should understand.
The legal basis of PPE
PPE ownership is governed by Articles 712a to 712t of the Swiss Civil Code. It creates a form of co-ownership in which each co-owner has an exclusive right to use and enjoy a specific part of the building (their apartment) and a proportional share of the common parts.
The PPE is registered in the land register. Each apartment has its own land register entry, which records the owner, the apartment description and the share of the common parts. This means that each apartment can be bought, sold and mortgaged independently of the other apartments in the building.
The co-ownership community
All PPE co-owners in a building form a co-ownership community (communauté des copropriétaires). The community is responsible for managing the common parts of the building, maintaining the renovation fund and making collective decisions about the building's management and maintenance.
The community is governed by the PPE regulations and by the decisions of the annual general meeting. A building manager (gérant) is typically appointed to handle day-to-day management on behalf of the community.
Rights and obligations of PPE owners
PPE owners have the right to use and enjoy their apartment and the common parts of the building. They can renovate their apartment (subject to the PPE regulations and any planning requirements), sell it, rent it out (subject to any restrictions in the PPE regulations) and mortgage it.
PPE owners are obliged to pay their share of the service charges and renovation fund contributions, to comply with the PPE regulations and to participate in the annual general meeting. They are also responsible for maintaining their apartment in good condition and for not causing nuisance to other co-owners.
PPE vs other ownership structures
PPE is the standard ownership structure for Swiss apartments and is well-understood by Swiss banks, notaries and lawyers. It provides strong legal certainty and is a straightforward ownership structure for buyers.
In some older buildings, apartments may be held in a different ownership structure — for example, as shares in a building company (société immobilière). This structure is less common and has different legal and tax implications. Buyers should verify the ownership structure of any apartment they are considering before proceeding.
Key points
- PPE governed by Swiss Civil Code Articles 712a–712t
- Each apartment has its own land register entry — can be bought, sold and mortgaged independently
- Co-owners form a community responsible for common parts and building management
- Rights: use, renovate, sell, rent (subject to regulations); obligations: service charges, compliance
- Standard structure for Swiss apartments — well-understood by banks, notaries and lawyers
Contact Montreux Real Estate for guidance on PPE ownership and its implications for your purchase.
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