Lodge Compliance - Your Guide to Stress-Free Short-Term Rentals 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.

Overview

There is no national short-term rental associations in Switzerland.

What is the maximum length of stay?

The maximum length of stay in Switzerland differs at cantonal and local levels. Some cantons restrict the duration of stay based on the ownership of the accommodation, as the stay varies if you own the flat or if you are renting it. But it is usually for about 60 days to 90 days, and it may be allowed for an unlimited number of days in a year depending on the cantonal categorization of the property.

The Canton of Geneva restricts short-term rental to 90 days for residential dwellings and requires hosts to change the purpose of the accommodation from residential to commercial.

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

Swiss law allows temporary sublets if you cannot use your rental property due to unforeseen circumstances. Hosts that are tenants need to get permission from the landlord each time they want to sublet their accommodation, and the landlord is free to refuse to consent. If the landlord agrees, you may need to decide on the conditions of rental, i.e., how often it will be rented, the price, specific requirements, and which rules the subtenants need to follow. Most importantly, you are only permitted to make a profit of 20% on the rent you pay.

Although written consent is not a requirement but will be helpful in the case of a dispute.

You can rent out your home as much as you like if you are the landlord as long as your canton and condominium association permits. The rent charged in this case must be similar to the average monthly rent which could be charged for the same property.

Also, the Federal Act on Foreigners and Integration (Foreigners and Integration Act, AIG) (s16) states that commercial accommodation provides the details of each guest to cantonal authorities. Therefore, in many cases, you need to register your guest with your cantonal authorities or local police. Other rules depend on your canton, so do well to check for other laws and regulations that concern tourist accommodation rental in your canton.

Is there any National Tax that affects short-term rental?

Yes, you need to pay tax on your Airbnb rental income. You are liable to pay three taxes which are;

Income Tax: You are required to pay an income tax on your rent which is usually about 20%. however, you can deduct a flat rate of 20% for maintenance and operating costs.
Cantonal/Tourist Tax: This is the tax that is collected from each visitor and paid to the canton for all the nights they spend on your accommodation. Every canton has a different tourist tax, and some booking sites work with some cantons and cities to collect the tax on behalf of its hosts. Check your locale to learn about the applicable tourist rates and the different booking platforms that they collaborate with. Cities that partner with Airbnb include Zurich, Basel City, Zug, Basel Country, Lucerne, and Schaffhausen.
VAT: you will need to pay a 3.6% reduced VAT on your accommodation if you make more than 100,000 CHF per year. However, you can deduct maintenance and operating costs.

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

There is no national permit, license, or registration for short-term rental owners in Switzerland, instead, you may be required to apply for tax permits at multiple levels of government and register for other permits such as the hospitality license at your local jurisdiction.

It is important to check with both state and local authorities for the necessary registrations. Check your sub-national jurisdiction page on this website to access the latest information on the laws and regulations that applies to your short-term rental properties.

Switzerland Lodging Regulations

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