Can a Foreign Buyer Rent Out a Swiss Property?

The general rule

Properties purchased under Lex Koller authorisation as holiday homes cannot be rented out commercially. The authorisation conditions require the property to be used exclusively as a private holiday home by the buyer and their immediate family. Commercial rental — including short-term platforms such as Airbnb or VRBO — is not permitted.

This restriction is registered against the property and is enforceable by the cantonal authority. Violations can result in the authorisation being revoked and the buyer being required to sell the property.

Why the restriction exists

The rental restriction reflects the purpose of the Lex Koller authorisation: to allow foreign buyers to own a private holiday home in Switzerland, not to invest in rental income property. The Swiss authorities distinguish between personal use and commercial exploitation, and the authorisation is granted only for the former.

This is a significant consideration for buyers who are accustomed to offsetting ownership costs through rental income. In Montreux, a Lex Koller-authorised property cannot be used to generate rental income.

Exceptions and nuances

Some older Lex Koller authorisations — granted under earlier versions of the law — may have different conditions. Buyers considering a property with a historical authorisation should review the specific conditions attached to that property.

Properties purchased by C permit holders or Swiss nationals are not subject to Lex Koller restrictions and can be rented out freely, subject to standard Swiss tenancy law.

Alternative structures

Foreign buyers who wish to generate rental income from Swiss property should explore whether they qualify for a C permit or whether there are other structures available. In some cases, purchasing through a Swiss company may be possible, though this is subject to its own restrictions under Lex Koller.

Buyers with rental income objectives should discuss their goals with a specialist lawyer before committing to a purchase under Lex Koller authorisation.

Key points

• Lex Koller-authorised holiday homes cannot be rented out commercially
• Short-term rental platforms (Airbnb, VRBO) are not permitted
• The restriction is registered against the property and is enforceable
• Older authorisations may have different conditions — verify before purchase
• C permit holders and Swiss nationals can rent out property freely