Second home vs primary residence for short-term rental in Switzerland

“Primary residence”, “secondary residence” and “short-term rental” are three phrases that appear on every line the moment you talk about renting out a property in Switzerland on Airbnb — and that are very often mixed up. Understanding the difference is not an academic exercise: it determines what you are allowed to do with a property, how it is taxed and, practically, how profitable your rental is.

The starting point is simple. Primary residence and secondary residence describe how you use a dwelling for yourself. Short-term rental describes an activity — letting a dwelling to third parties for payment. You can run a short-term rental on a primary residence or on a secondary residence. What changes is what each status implies administratively, legally and fiscally.

In short: a primary residence is the dwelling where you live and are domiciled; a secondary residence is a pleasure dwelling for your personal use; short-term rental is an activity of letting out either one, subject to municipal rules and tax.

The three terms, clearly defined

Primary residence: the dwelling where you actually live

The primary residence (or domicile) is the dwelling where a person effectively lives and where their centre of life is. In Swiss law, a person’s domicile is the place where they stay with the intention of settling durably — where they come home to, where they are registered with the residents’ office, where their personal and professional ties are. It is the dwelling where you sleep most of the time, the one you do not generally rent out long-term.

Secondary residence: a pleasure dwelling for your own use

A secondary residence is a dwelling you own or use for your own pleasure, in addition to your primary residence — the holiday apartment, the mountain chalet, the lakeside house. You are not domiciled there: you only stay there. What sets a secondary residence apart from a rental property is precisely that you occupy it yourself and that it does not produce rental income in its primary function.

Short-term rental: an activity on the property

Short-term rental is the activity of making a dwelling available to third parties for payment over limited stays — by the night, the weekend, the week — typically via Airbnb, Booking or a manager. For the tax authority and the tourist tax, it is a commercial activity, regardless of whether the dwelling is your primary or secondary residence.

Photo : Christian David, CC BY-SA 4.0, via Wikimedia Commons

What changes between a primary and a secondary residence

The status of your dwelling — primary or secondary — determines three things that matter for rental:

• Administrative status. Your primary residence is tied to your domicile, your registration with the residents’ office and the notion of protected housing. A secondary residence is not tied to a domicile.
• Taxation of the owner-occupied dwelling. Until the reform, the imputed rental value (the notional rent of the dwelling you occupy yourself) was taxed for both primary and secondary residences. The reform voted in 2025 abolishes it and, in exchange, restricts certain deductions — see below.
• The framework for letting. A secondary residence dedicated to holidays is the cleanest framework for short-term rental. Letting your primary residence to third parties (while you travel or during works) involves different municipal rules and more attention.

The Federal Act on secondary residences (the 20% rule)

Another, strictly legal notion regularly muddies the debate: the Federal Act on secondary residences (LRS), adopted on 11 March 2012 and in force since 1 January 2016. Born of the “against landscape sprawl” initiative (the Weber initiative), it caps the share of secondary residences at 20% of the housing stock of each commune.

In communes where the share exceeds 20%, no new secondary residence may be built: only primary residences and, under conditions, dwellings intended for tourist accommodation may still be created. A relaxation voted by Parliament in March 2024 made it possible even in those communes to renovate or replace existing buildings — including where this creates new secondary residences.

Photo: Kecko, CC BY 2.0, via Wikimedia Commons

Taxation: what the 2025 reform changes

This is where the primary / secondary distinction has the most concrete consequences. Until now, the imputed rental value — the notional rent attributed to a property occupied by its owner — was taxed, for primary and secondary residences alike.

On 28 September 2025, the Swiss people accepted the reform of the taxation of owner-occupied property by 57.7%: the imputed rental value is abolished for primary and secondary residences. This abolition is linked to the introduction of a new special tax on secondary residences. The Federal Council announced in April 2026 that the reform would come into force on 1 January 2029.

Subject	Before the reform	From 2029
Imputed rental value	Taxed (primary and secondary)	Abolished
Maintenance costs of an owner-occupied home	Deductible	Not deductible (still deductible for let properties)
Mortgage interest	Deductible	Deductible on a restricted basis; limited 10-year deduction for a first home
Secondary residences	Imputed rental value taxed	Special tax possible, decided by tourist cantons

For owners of tourist properties in mountain cantons, the abolition of the imputed rental value on secondary residences represents a significant tax loss. This is why the reform gives cantons the option to levy a tax on secondary residences to compensate. The exact practice will therefore depend on the canton where the property sits.

For short-term rental, recall the principle set out in our tax and VAT guide: rental income, whatever its form, is taxable income to declare; above CHF 100,000 of annual turnover, VAT registration (at the special 3.8% rate for accommodation) becomes compulsory.

Photo: Éric Nicolas Bonvin, CC BY-SA 4.0, via Wikimedia Commons

Short-term rental: an activity on both types of dwelling

The most frequent question is: can I run a short-term rental on a secondary (or primary) residence? The answer rests on one distinction: short-term rental is an activity, the two statuses are uses. The activity can be exercised on either — but not in the same framework.

Criteria	Primary residence	Secondary residence	Short-term rental (activity)
Nature	Your domicile	Your pleasure dwelling	Commercial activity on a property
Use	You live there	You stay there	Third parties stay for payment
Taxation of the occupied home	Imputed rental value (abolished 2029)	Imputed value, then possible special tax	Taxable rental income + possible VAT
Short-term letting allowed	Under municipal conditions	The most natural framework	The very object of the activity

In practice:

• A secondary residence dedicated to holidays can be let short-term: this is the most common and the easiest case to maintain over time, because you do not need it permanently.
• A primary residence can also be let short-term — for example while you travel, on assignment or during works — but municipal rules (authorisation, maximum duration, tourist tax) and the question of your domicile need particular attention.
• In both cases the commune remains sovereign: registration, possible permit, tourist tax. See our registration and permit guide for the steps.

Why the terms get confused — and the trap to avoid

The most common trap: calling an apartment let on Airbnb a “secondary residence”. Wrongly. A property you do not reserve for yourself and let continuously is not a secondary residence: it is a rental property operated short-term (para-hotellerie, in administrative terms). Calling it “secondary” has no legal value and can make you miss your obligations (registration, tourist tax, municipal permit).

The reverse exists too: believing that a chalet classified as a secondary residence, because it is occasionally let, automatically becomes a rental property. As long as you occupy it yourself and the letting remains secondary, it keeps its character as a secondary residence. What changes the classification is the predominant use (personal use versus letting operation), not merely letting it from time to time.

The Vaud Riviera and Montreux case

On the Vaud Riviera: no LRS blockage (share of secondary residences below 20%), but an active municipal regulation of short-term letting. In Montreux as elsewhere in the canton, a municipal authorisation and the registration of overnight stays (tourist tax) are required for tourist operation — see our registration guide and the Vaud regulations explained.

In Villeneuve and along the Riviera, letting holiday apartments short-term is a well-established activity, described in our guide to short-term rental in Villeneuve. To decide whether short-term letting is profitable for your property, start from your potential income and the complete guide to renting in Montreux, then check the local rules before investing.

Photo: Jérôme Bon, CC BY 2.0, via Wikimedia Commons

Also read: How to legally register your apartment · Airbnb tax and VAT · Vaud regulations explained · Complete guide to renting in Montreux · How much can you earn on Airbnb?

Frequently asked questions

Sources

• Federal Act on Secondary Residences (LRS), SR 702, in force since 1 January 2016 — fedlex.admin.ch
• LRS relaxation adopted by Parliament in March 2024 (renovation / replacement of buildings in communes above 20% of secondary residences).
• Reform of the taxation of owner-occupied property — vote of 28 September 2025 accepted at 57.7%; abolition of the imputed rental value and a new special tax on secondary residences, entry into force announced for 1 January 2029 — Swiss Federal Department of Finance, retrieved 27 August 2026.