Airbnb Laws in Switzerland

Airbnb Laws in Switzerland

Switzerland

Introduction
Introduction to Airbnb in Switzerland

Subletting or short-term rental, popularly known as Airbnb in various places in the world, including Switzerland, had been opposed by various groups such as the Home Owners’ Associations, Hotel Associations, and also the government. Various laws and regulations such as taxation, restriction on terms of rental, permit, occupancy limit, and noise restriction has been put in place but as much as these laws exist, the business keeps booming and more hosts sign up on various booking platforms daily. Here is a brief to guide you on the laws that guide the tourist accommodation activity in Switzerland.

Overview

Subletting or short-term rental, popularly known as Airbnb in various places in the world, including Switzerland, had been opposed by various groups such as the Home Owners’ Associations, Hotel Associations, and also the government. Various laws and regulations such as taxation, restriction on terms of rental, permit, occupancy limit, and noise restriction has been put in place but as much as these laws exist, the business keeps booming and more hosts sign up on various booking platforms daily. Here is a brief to guide you on the laws that guide the tourist accommodation activity in Switzerland.

Property
Overview

In Switzerland, there is no national association specifically dedicated to short-term rental (STR) owners. However, Swiss STR owners can seek support and resources through international organizations such as the International Short-Term Rental Association (ISTRA), which aims to advance professionalism and success in the STR industry globally.

Additionally, various online platforms and local agencies, like UMS Temporary Housing, facilitate connections between property owners and potential tenants, offering services that support the STR market in Switzerland.

While these organizations provide valuable resources, the absence of a dedicated national association means that STR owners in Switzerland may need to rely on a combination of international bodies, local agencies, and online communities for support, networking, and advocacy.

Property
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short term rentals
What is Airbnb in Switzerland?
What are short Term Rentals in the Country?

Locally, short-term rentals in Switzerland are often referred to as "Ferienwohnung" (holiday apartment) in German-speaking regions, "appartement de vacances" in French-speaking areas, and "appartamento per vacanze" in Italian-speaking parts. These terms reflect the tradition of renting out holiday apartments, chalets, or homes, especially in popular tourist destinations throughout Switzerland's picturesque alpine regions and vibrant cities. In Switzerland, a short-term rental refers to a property rented out for a brief period, typically less than 90 days, to tourists or business travelers seeking temporary accommodation. These rentals offer a flexible alternative to hotels and are often managed by private hosts or property management companies, providing guests with a more localized and authentic experience.

Is Subletting Legal?
Is Subletting Legal in Switzerland?

Yes, subletting is legal, but they generally need permission from their landlord. This permission is often a formal requirement in lease agreements, particularly if the sublet is for commercial or frequent rental use. Additionally, may also need to check with homeowners' associations and local authorities, as certain municipalities or cantons have specific regulations or permit requirements for short-term rentals.

National Association for STR Owners
What is the maximum length of stay in Switzerland?
What is the maximum length of stay?

Switzerland does not have a nationwide maximum length of stay for short-term rentals. Regulations vary by canton and municipality, with local limits set according to regional housing needs and tourism policies. Here are the maximum allowable stays in some popular cities:

  • Geneva: 60 days per year for short-term rentals to limit the impact on housing availability in the city.
  • Zurich: No strict annual limit is set, but the city follows general guidelines and tax regulations, with scrutiny on rentals impacting housing availability.
  • Bern: Local authorities are considering stricter regulations, though no specific maximum has been enforced yet.
  • Zermatt and Davos: Popular tourist areas like these often have seasonal or tourist-specific regulations rather than fixed annual limits, focusing on tax collection and property use during peak tourism periods.
Is there any National Registration Requirement or Permit?

Switzerland does not have a national registration requirement or permit for short-term rentals. Instead, registration and permit requirements are governed by local authorities, and these vary significantly by canton and municipality. Hosts must verify with their local authorities whether registration, permits, guest information reporting, or additional compliance measures are necessary.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Yes, host need permission to operate short-term rentals depending on local rules, property ownership, and neighborhood factors. Key requirements include:

  1. Landlord Consent: Hosts who are renters need written approval from their landlord, as subletting without permission could violate lease terms and lead to eviction.
  2. Local Council/Authority: Rules vary by canton and commune; some require permits or registration for rentals over a certain number of days, while others limit consecutive rental days. Checking with the local communal office (Gemeinde) is essential for specific requirements.
  3. Neighbor Concerns: Although formal permission isn't required, neighbors may object if rentals cause disturbances. Some communes address noise and security issues, potentially imposing fines or restrictions based on complaints.

Is Short-term rental Income taxable?

Short-term rental income in Switzerland is taxable and may incur several taxes based on income thresholds and location:

  1. Income Tax: Progressive income tax applies at federal, cantonal, and municipal levels, with rates between 22% and 46%. Taxpayers file an annual self-assessment by canton-specific deadlines, with the tax year running from January 1 to December 31.
  2. VAT: If rental income exceeds CHF 100,000 annually or is a business activity, a 3.7% VAT on accommodation services applies. VAT must be reported and paid quarterly within 60 days after each quarter’s end; semi-annual filing is available for net tax rate reporting.
Is there any National Tourism Fund or Tourist Tax?

Yes, short-term rental hosts in Switzerland are typically required to collect a local tourism tax from guests. Most cantons and communes impose a tourism or visitor tax (Kurtaxe or taxe de séjour) that hosts must collect from guest which is calculated per guest per night, ranging from CHF 2 to CHF 7. and remitted to local authorities. This tourism tax supports local tourism boards and related initiatives

Is there any Guest Registration and Reporting Requirement?

No, there are no guest registration and reporting requirements for short-term rentals in Switzerland: Though the following are required

  1. Guest Information Collection: Hosts may be legally required to collect and retain information about both Swiss and foreign guests. This requirement can often be found in the canton’s hospitality laws or can be clarified by contacting the relevant local authority.
  2. Reporting to Authorities: Some cantons may require hosts to submit guest registration data electronically to local authorities. This reporting process may include maintaining a guest directory, especially for foreign guests, in line with the Federal Law on Foreigners.
  3. Data Protection Compliance: Hosts who retain guest data must follow the Swiss Data Protection Act to ensure guest information is protected and only used for official reporting purposes.

Is there any National Health and Safety Requirements?

Switzerland has specific national health and safety requirements for short-term rentals that focus on preparedness, cleanliness, and hazard prevention:

  1. Health and Cleanliness: Hosts should follow Airbnb’s enhanced cleaning protocol and adhere to Swiss Federal Office of Public Health guidelines, especially regarding COVID-19 hygiene standards.
  2. Emergency Contact Information: Hosts must provide guests with essential emergency contacts, including local emergency services, the nearest hospital, and a personal or backup contact.
  3. Medical and Safety Supplies: A well-stocked first aid kit should be accessible for guest use.
  4. Fire and Hazard Prevention: Hosts need to comply with gas safety rules, have a carbon monoxide detector for gas appliances, maintain a fire extinguisher, clearly label fire escape routes, and address any hazards like exposed wires or unsafe stairs.
Is there any Platform Accountability Requirement?

Yes, online platforms like Airbnb have a responsibility to ensure that short-term rental listings comply with national laws and regulations in Switzerland. They provide general guidelines to hosts on complying with local laws and emphasize that hosts must follow specific national health and safety standards, local guest registration laws, and tax regulations. While platforms assist by offering information on legal compliance, they are not directly responsible for enforcing every regulation, as each host must ensure their own compliance. However, platforms like Airbnb may be legally required to share certain transaction data with Swiss authorities if requested.

Is there any Anti-Discrimination Law?

Switzerland's anti-discrimination laws protect individuals from discrimination in all aspects of life, including short-term rentals. Key points include:

  1. Anti-Discrimination Law: Swiss law prohibits discrimination in services provided to the public, such as accommodations, based on race, ethnicity, religion, or sexual orientation. Violations can lead to penalties, including up to three years in prison or a fine.
  2. Housing and Rental Protections: Public housing authorities cannot discriminate against tenants based on nationality, ethnicity, or religion. Private landlords have some flexibility but are still prohibited from overt discrimination on these grounds. Individuals who feel they have experienced discrimination can file a complaint with the Federal Commission against Racism, supported by credible evidence.

Is there any Data Sharing Requirements?

Yes, short-term rental platforms may be required to share data with national government authorities. Specifically, the Swiss Federal Tax Administration (FTA) can request transaction data from platforms like Airbnb to obtain information on specific taxpayers. Platforms are legally obligated to provide limited data on transactions conducted on their site when requested by the FTA.

Is there any National Insurance Requirement?

Short-term rental hosts are not required by law to hold liability insurance, but it is strongly recommended that they review their insurance policies to ensure they have adequate coverage. Hosts are advised to consult with insurance providers to verify that their listing is properly covered for liability and property protection in the event of guest-related incidents.

Is there any National Zoning law/Cultural Heritage law?

Switzerland does not have explicit national regulations protecting culturally or historically significant areas from short-term rentals. However, local planning authorities frequently use zoning and tourism accommodation laws to control where these rentals can operate. Such regulations may limit short-term rentals in culturally or historically important areas to preserve local heritage, maintain residential integrity, and reduce potential disruptions. These planning measures seek to balance the economic benefits of tourism with the preservation of Switzerland's unique cultural and historic sites, ensuring that the growth of short-term rentals does not compromise these valuable locations.

Is there any Environmental Regulations that affects STR?

In Switzerland, short-term rentals must meet various environmental sustainability standards, including adherence to waste management protocols, emissions reduction, and pollution control, as outlined by federal and cantonal regulations. These include sustainable waste practices, minimizing emissions, and preventing soil and water contamination. Buildings must comply with environmental assessments for pollution control, and operators face fines up to CHF 20,000 for significant environmental breaches.

Is there any National Tenant Protection Law?

In Switzerland, tenants are well-protected against eviction for the purpose of converting properties to short-term rentals. Key legal protections include:

  1. Just Cause Requirement: Evictions can only proceed with a legally valid reason. Profit from short-term rentals alone does not qualify, and courts typically support tenants if landlords try to evict solely for financial gain.
  2. Advance Notice: Minimum notice periods (3–6 months) vary by canton, giving tenants ample time to prepare or challenge an eviction.
  3. Protection Against Arbitrary Termination: Tenants can contest evictions they consider arbitrary or retaliatory. Courts often side with tenants if evictions appear motivated solely by profit.
  4. Canton-Specific Regulations: Many cantons impose restrictions on converting long-term rentals into short-term rentals, with limits on how many days a property can be rented short-term to maintain its residential classification.
  5. Right to Compensation: Tenants may qualify for compensation or relocation support if the eviction does not align with tenant protection laws.
  6. Tenant Associations: Organizations like the Swiss Tenants' Association (Mieterverband / ASLOCA) offer legal support to tenants facing eviction, enhancing tenant rights and access to resources.

Is there any Reporting Requirements for Foreigners?

There is no reporting requirement for foreigners but Hosts are legally required to keep record and retain information about their foreign guests, often in compliance with local and federal regulations. Here are the key requirements:

  1. Guest Registration: Hosts must collect and retain information about both Swiss and foreign guests. This may include completing notification certificates provided by the local canton authority. Some cantons offer electronic forms to facilitate guest registration.
  2. Federal Law on Foreigners: Hosts should refer to the Federal Law on Foreigners for legal requirements regarding reporting foreign guests. This law specifies the basis for guest information collection and reporting.
  3. Data Protection Compliance: Hosts maintaining a guest directory are required to follow the Federal Swiss Act on Data Protection. This means protecting guest data from third-party access and only processing it as necessary to meet reporting obligations.

Is there any Digital Platform Regulation Compliance?

Platforms like Airbnb are not required to verify compliance with national regulations in Switzerland before listing properties, but they provide guidance to Hosts about following local laws and regulations.

Is there any Consumer Protection Law that affect STR?

In Switzerland, national consumer protection standards ensure short-term rental contracts are fair and transparent. Key regulations include: 1. Consumer Rights in Contracts: Swiss laws require that all contracts, including short-term rentals, comply with fair competition and anti-fraud standards. The Unfair Competition Act (UWG) protects against misleading advertising, unclear contract terms, and excessive cancellation fees, especially relevant to rental platforms. 2. Transparency on Fees and Conditions: The Federal Consumer Protection Act mandates clear communication regarding prices, terms, and conditions, which applies to online marketplaces and booking platforms. For instance, platforms must provide transparent pricing and ensure consumers understand service and booking fees upfront. 3. Product and Service Safety: For accommodations, the Federal Product Liability Act requires that facilities meet certain safety standards to protect guests from harm, covering aspects such as emergency exits, fire safety equipment, and accessibility.

Is there any Law that applies to Non-resident Owners?

Switzerland enforces specific rules for non-resident short-term rental (STR) property owners, covering ownership limitations, tax obligations, and registration requirements: 1. Residency Limits: Swiss law, through the Lex Koller, restricts non-residents to buying only vacation or secondary homes in tourist areas, with cantonal variations in enforcement. 2. Taxation: Non-residents must pay income tax on rental earnings, generally around 20%, after allowable deductions for property maintenance and mortgage interest.

Is there any classification of STR in the country?

Switzerland’s short-term rental (STR) regulations do not have a uniform national classification. Instead, classifications and regulations are primarily determined by individual cantons. Each canton may impose its own rules on STR properties, including rental duration limits, permitting, and reporting obligations, and may distinguish between primary residence rentals and commercial STRs. Compliance requirements often vary by region, aiming to address local housing and tourism needs.

Are there Special National Event Regulations?

In Switzerland, short-term rentals face extra regulations during major events or holidays, often set by local cantons: 1. Stay Limits: In some areas, like Geneva, rentals are limited to 90 days per year, with potential temporary restrictions during peak events to keep residential space available. 2. Guest ID and Registration: Hosts may need to rigorously check IDs and register guests with local authorities, such as Zurich Police, to enhance safety during busy times. 3. Noise and Curfew Rules: High-traffic areas like Zurich and Basel may enforce stricter noise and curfew policies to ensure community peace, requiring hosts to inform guests. 4. Tourist Tax Adjustments: Tourist taxes may increase during events, and hosts may need to provide public transport passes in some cities, such as Basel and Zurich.

Is there any Penalty for Violating National Rules?

In Switzerland, penalties for non-compliance with short-term rental regulations, such as operating without a permit, typically include fines and, in severe cases, suspension from listing platforms. Local requirements can vary, with some cantons enforcing stricter measures like immediate cessation orders or higher fines for unlicensed rentals.

Are there National Rules or Regulations Governing Short-Term Rentals in Switzerland?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Yes, there are regulations governing short-term rentals in Switzerland. However, these regulations are primarily at the cantonal and municipal levels, meaning they vary significantly across the country.

Here's a general overview:

  • No National Permit: There's no single national permit or license specifically for short-term rentals.
    • Local Regulations:Permits and Licenses: Some cantons and municipalities require specific permits or licenses to operate a short-term rental.
    • Zoning Restrictions: Zoning laws may limit or prohibit short-term rentals in certain areas.
    • Guest Registration: You may be required to register your guests with local authorities.
    • Tax Obligations: Income from short-term rentals is subject to taxation, and you may need to register for and pay relevant taxes.
  • Landlord/Tenant Agreements: If you're renting your property, your lease agreement may have clauses regarding subletting or short-term rentals.
  • Condominium Rules: If you live in a condominium, the building's regulations may restrict or prohibit short-term rentals.
Is there any National Tax that affects short-term rental?

This is a comprehensive overview of the taxes that can affect short-term rental income in Switzerland. Here are a few minor additions and clarifications:

  • Income Tax:
    • It's important to note that the income tax system in Switzerland is progressive, meaning that higher income brackets are taxed at higher rates.
    • Tax deductions can significantly reduce your tax burden. In addition to the deductions mentioned, you may also be able to deduct expenses for professional services related to your short-term rental business.
  • Value Added Tax (VAT):
    • The VAT registration threshold of CHF 100,000 is a simplified guideline. There may be specific rules for the hospitality industry that could affect this threshold.
  • Tourist Tax:
    • The tourist tax is typically collected from guests as a percentage of the nightly rate.
    • As a host, you are responsible for collecting this tax, issuing receipts, and remitting it to the appropriate authorities.
  • Imputed Rental Value Tax:
    • While this tax is currently in place, it's important to stay updated on any potential legislative changes.

Key Considerations:

  • Cantonal Variations: Tax laws and regulations vary significantly between cantons. It's crucial to research the specific rules in the canton where your property is located.
  • Professional Advice: Consulting with a tax advisor is highly recommended. They can provide personalized guidance on your specific situation, help you optimize your tax strategy, and ensure compliance with all applicable regulations.

By carefully considering these factors and seeking professional advice, short-term rental hosts in Switzerland can navigate the tax landscape effectively and minimize their tax liabilities.

permits, license
Are there any Permits, Licenses, or Registrations for Airbnb in Switzerland?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Switzerland does not have a national registration requirement or permit for short-term rentals. Instead, registration and permit requirements are governed by local authorities, and these vary significantly by canton and municipality. Hosts must verify with their local authorities whether registration, permits, guest information reporting, or additional compliance measures are necessary.

Is there any National Association for Airbnb owners in Switzerland?
Is there any National Association for STR owners in the Country?

In Switzerland, there is no national association specifically dedicated to short-term rental (STR) owners. However, Swiss STR owners can seek support and resources through international organizations such as the International Short-Term Rental Association (ISTRA), which aims to advance professionalism and success in the STR industry globally.

Additionally, various online platforms and local agencies, like UMS Temporary Housing, facilitate connections between property owners and potential tenants, offering services that support the STR market in Switzerland.

While these organizations provide valuable resources, the absence of a dedicated national association means that STR owners in Switzerland may need to rely on a combination of international bodies, local agencies, and online communities for support, networking, and advocacy.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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