Switzerland – LFAIE: 5 Key Obligations for a Holiday Home

The acquisition of a holiday home by a foreign purchaser is subject to strict conditions under the Federal Act on the Acquisition of Real Estate by Persons Abroad (LFAIE).

Below are the five fundamental obligations that must be respected after the purchase:

1️⃣ Effective Use as a Holiday Home

The property must be:

• effectively and permanently used as a holiday home;

• exclusively designated for this purpose.

👉 Any change of use requires the prior consent of the Cantonal Land Commission.

2️⃣ Extensions Subject to Authorisation

Any increase in the net habitable floor area:

• requires the consent of the Cantonal Land Commission;

• must be submitted together with the official building plans;

• the request must be filed no later than at the time of the building application submission.

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3️⃣ Resale Within 5 Years: Mandatory Approval

If the property is sold within five years:

• from the date of registration in the Land Register; or

• in the case of an off-plan purchase, from the handover of the keys;

the consent of the Cantonal Land Commission is required(Art. 14 para. 4 LFAIE; Art. 11 para. 4 and 5 OAIE).

4️⃣ Obligation to Sell in Case of Non-Use (After 5 Years)

After the five-year period:

• if the purchaser no longer uses the property as a holiday home,

• it must be sold within two years.

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5️⃣ Prohibition of Year-Round Rental

Permanent (annual) rental is strictly prohibited.

Only use consistent with the status of a holiday home is permitted.