The case

The amendment to the Secondary Residences Act means that as of 1 October 2024 Switzerland relaxes the rules for the construction as well as the conversion of so-called old-law flats.

Source: Swiss newspapers

The commentary

Ever since 2016, it was illegal to build new holiday homes in municipalities sporting a proportion of secondary residences exceeding 20 %. Under the new version of the law entering into force on 1 October 2024, it is permitted to create additional residential units and buildings when converting flats built under the old law. It is also allowed to demolish and rebuild previous-law flats, and one may even extend the living space by up to 30 %.

Previous-law flats are defined as properties that lawfully existed or were legally approved before the Secondary Residence Act voted on on 11 March 2012. Such properties may continue to be sold or rented out as second residences provided the canton has not issued stricter regulations.

The amendments to the Secondary Residence Act allow for more flexibility for property owners and might help stimulate the property market in tourist places. The amendments are in line with the demand for the modernization of existing structures as well as to make the best use of living space and, at the same time, aim at restricting new construction projects in order to limit the over-development in much frequented tourist places.

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