Real estate

PPE: storey ownership

In Switzerland, most apartments are held under PPE (Propriété Par Étages / Storey Ownership). Each owner holds:

• Their private share (the apartment)
• A share of the common parts (stairs, roof, boiler room, garden)

How the assembly works

The co-owner assembly decides on common works. Usual quorum: simple majority for maintenance, qualified (2/3) or unanimous for major works. Consult the PPE regulations for exact rules.

Renovation fund

The PPE renovation fund is mandatory in most cantons. It spreads major works (roof, facade, heating) over several years. Typical contribution: 0.5% to 1% of the property value per year.

Example villa CHF 800,000 → CHF 4,000-8,000/year per co-owner into the fund.

Swiss real estate taxation

Imputed rental value

The owner who occupies their home pays tax on a fictitious rental value (the rent they would have received by letting it). This value is set by the cantonal administration and is generally 60-70% of the market rent.

Possible deductions

• Mortgage interest (fully deductible)
• Maintenance and renovation costs (deductible year by year)
• PPE renovation fund contributions (deductible in most cantons)
• Building insurance

Wealth tax

The property's tax value is added to taxable wealth. It is generally lower than the market value (60-80%).

Capital gains

Resale capital gains are taxed via the real estate capital gains tax (cantonal). Degressive rate depending on holding duration: 40-50% for quick sales, 10-20% after 20-25 years.

Mandatory and recommended insurance

1. Building insurance (ECA or private): mandatory in most cantons. Covers fire, water damage, storms.
2. Owner liability insurance: strongly recommended (CHF 100-300/year)
3. Extended household insurance for condominiums

Preventive maintenance: the calendar

A well-maintained building degrades 3 to 5 times slower than a neglected one. Typical schedule:

Yearly: heating check, gutters, roof, gardens

Every 5 years: roof joint repointing, commercial electrical inspection

Every 10-15 years: facade repainting, roof renovation for tiles, OIBT inspection

Every 20-25 years: heating replacement, bathroom/kitchen renovation, window replacement

Every 40-50 years: complete renovation, roof overhaul, energy upgrade

Increasing your property value at resale

The 5 levers that most increase a Swiss property's value:

1. Energy renovation (+5 to 10% of value)
2. Modern kitchen (+3 to 7%)
3. Renovated bathrooms (+2 to 5%)
4. Well-maintained garden and exterior (+2 to 4%)
5. CECB ≤ C (+3 to 6%, quickly becoming mandatory)

Avoid overly personal renovations (bold colours, very marked styles) that reduce the pool of potential buyers.

Financing and mortgages

In Switzerland, most owners have a 2-tranche mortgage:

• 1st mortgage (up to 66% of value, no mandatory repayment)
• 2nd mortgage (66-80%, mandatory 15-year repayment)

10-year fixed rates are at 1.8 to 2.5% in Q1 2026. SARON rates: 1.0 to 1.5%.

Official sources

• Federal Tax Administration
• Cantonal Land Register
• Hauseigentümerverband