Real Estate
Holiday home · Second home · Germany–SwitzerlandSwiss Holiday Home Owned by a German Resident
Anyone living in Germany who owns or plans to buy a holiday home or second home in Switzerland needs to distinguish several issues: eligibility to acquire property under Swiss law, ongoing Swiss property taxation, German treatment under the tax treaty and the potential effect of a regularly available Swiss home on tax residence. A holiday home therefore raises both property-related questions and potential tax residence issues.
Overview
Four separate aspects of owning a Swiss holiday home
A holiday home in Switzerland involves more than German income tax. Even before the purchase, it is necessary to establish whether the buyer is permitted to acquire the property in the intended form.
After the purchase, ongoing Swiss taxation and German treatment under the Germany–Switzerland double taxation agreement must be addressed. If the owner regularly uses the property personally and it remains permanently available to them, tax residence between Germany and Switzerland may also become relevant.
These four aspects should therefore be assessed separately.
Key distinctions
A holiday home does not automatically create Swiss tax residence
Ownership of a Swiss holiday home and tax residence are separate questions. The property may be relevant for Swiss tax purposes without the owner automatically losing their German residence or German tax residency.
- Assess property ownership separately
- Determine Swiss taxation separately
- Assess German residence separately under section 8 of the German Fiscal Code (AO)
- Determine treaty residence where dual residence exists
Acquisition
Can someone living in Germany buy a holiday home in Switzerland?
The acquisition of Swiss real estate by persons abroad is restricted by the Federal Act on the Acquisition of Immovable Property in Switzerland by Foreign Non-Residents, commonly known as Lex Koller.
Whether a particular purchase requires a permit or qualifies for approval depends on the buyer, the intended use, the property and the canton. The competent authority is the cantonal authority where the property is located.
Buyer
Establish the buyer’s nationality, residence and immigration status.
Use
Distinguish between a primary home, holiday home, second home and a property held solely as an investment.
Canton
Check cantonal and, in some cases, municipal requirements and quotas.
Consider the proposed Lex Koller reform
In 2026, the Federal Council proposed further tightening of Lex Koller, including rules affecting holiday homes. These proposals were undergoing the legislative process in 2026. For a specific purchase, the current legal position and the practice of the competent canton should therefore always be checked.
Property acquisition requires a separate assessment
Acquisition restrictions are discussed in more detail in Buying Swiss Property as a German National – Lex Koller .
Swiss taxation
The property remains relevant for tax purposes in Switzerland, where it is located
Article 6 of the Germany–Switzerland double taxation agreement generally gives the country where immovable property is located the right to tax income from that property. Switzerland therefore remains central to the taxation of a Swiss holiday home.
The specific cantonal and municipal taxes depend on the property’s location, its use and the applicable cantonal law.
Property ownership
Swiss property generally creates connections that give rise to Swiss tax obligations.
Personal use
The Swiss treatment of owner-occupied property depends on the federal and cantonal law applicable at the time.
Letting
Letting the property generates actual Swiss property income.
Sale
A subsequent sale may trigger Swiss real estate capital gains tax and other cantonal tax consequences.
German perspective
What does owning a Swiss holiday home mean for a German resident?
If the owner remains subject to unlimited income tax liability in Germany, the consequences of the Swiss property for the German tax assessment must be examined.
The first consideration is how the property is used. A holiday home used exclusively for personal purposes is treated differently from a property that is wholly or partly let.
| Use | Switzerland | Germany |
|---|---|---|
| Exclusively personal use | Swiss property taxation under the applicable Swiss law | No actual rental income; assess residence and other treaty consequences separately |
| Partial letting | Taxation of property income in the country where the property is located | Assess German treaty treatment and calculate income under German rules |
| Permanent letting | Swiss taxation of rental income | German treatment under German law and the tax treaty |
| Sale | Examine Switzerland’s taxing rights over immovable property | Assess German treatment and treaty relief separately |
German tax return requirements
Detailed German reporting requirements and the necessary schedules are covered under Tax Returns & Reporting Obligations . This article focuses on the property itself.
Tax residence
Can a Swiss holiday home qualify as a permanent home?
This question must be distinguished from property taxation. A home may be relevant for tax residence purposes if it is actually available to the taxpayer on more than a short-term basis.
At the same time, German residence may continue. German law permits a person to have more than one residence. If the person is tax resident in both countries under their respective domestic laws, residence for treaty purposes must be determined using the criteria in the agreement.
German residence
A German home that remains available may preserve residence in Germany.
Swiss home
A Swiss home that is actually available may be relevant to the cross-border residence assessment.
Treaty residence
In cases of dual residence, the permanent home and centre of vital interests are particularly important.
Ownership alone does not determine tax residence
A Swiss holiday home does not automatically make its owner a Swiss tax resident. Conversely, describing a property as a “holiday home” does not prevent a permanently available and actually used home from being relevant to a residence assessment.
Further guidance on tax residence
Residence, permanent homes, dual residence and the centre of vital interests are discussed in more detail under Tax Residence & Relocation .
Letting
Letting a holiday home partly or entirely
If the Swiss holiday home is let to third parties for certain periods, it becomes an actual source of income alongside its personal use.
In particular, rental income, running costs, financing and the allocation between personal use and letting must then be assessed.
Rental income
Actual rental income must be distinguished from personal use.
Expenses
Costs may need to be allocated between rental periods and periods of personal use.
Germany
Figures calculated under Swiss law do not automatically represent the income relevant for German tax purposes.
Detailed guidance on rental property
Ongoing taxation is discussed in more detail in Swiss Rental Property Owned by a German Resident .
Financing
A Swiss mortgage or financing from Germany?
The financing structure should be aligned with the intended use before the purchase. In addition to lending terms and collateral, the tax allocation of financing costs and exchange rate effects may be relevant.
Swiss mortgage
Financing directly in the country where the property is located, typically in Swiss francs.
German financing
A German loan structure involving cross-border collateral and tax allocation.
Equity
A larger equity contribution reduces borrowing but changes the overall investment structure.
Further guidance on financing
For more detail, see Financing Swiss Property from Germany .
Sale
What happens when the Swiss holiday home is sold?
The country where the property is located remains central to its taxation on sale. In Switzerland, cantonal real estate capital gains tax rules may be particularly relevant.
At the same time, the German owner must assess the German tax treatment and the treaty relief applicable to the disposal.
Swiss tax
Check real estate capital gains tax and the specific rules of the canton where the property is located.
German treatment
Assess the German tax rules for disposals of privately held property separately.
Double taxation
The tax treaty determines how the taxing rights of the two countries are coordinated.
Detailed guidance on selling property
The sale is discussed in more detail in Selling Swiss Property While Resident in Germany .
Checklist
Documents for a Swiss holiday home
Acquisition
Purchase agreement, land registry documents and acquisition permit.
Use
Periods of personal use, rental periods and actual stays.
Swiss taxes
Tax returns, assessments and cantonal tax statements.
Financing
Mortgage documents, loan agreement, interest statements and collateral.
Letting
Rental agreements, platform statements, income and ancillary charges.
Expenses
Maintenance, management, insurance and renovation costs.
Time spent at the property
Where residence is relevant, document actual days of presence and use.
Sale
Retain records of the original acquisition costs, ancillary costs and subsequent capital expenditure.
Assessment process
Reviewing a Swiss holiday home in eight steps
Buyer
Establish nationality, residence and status for acquisition purposes.
Permit
Check Lex Koller and the cantonal requirements.
Use
Determine personal use, letting and the property’s status as a second home.
Financing
Plan equity, mortgage financing and allocation for tax purposes.
Switzerland
Determine the ongoing Swiss property taxation.
Germany
Assess German treatment and the effect of the tax treaty.
Tax residence
Assess the property’s availability and actual use separately where necessary.
Exit
Retain complete records for a subsequent sale.
Frequently asked questions
Swiss holiday homes owned by German residents
Can I buy a holiday home in Switzerland while living in Germany?
Does buying a Swiss holiday home always require a permit?
Does the holiday home automatically make me tax resident in Switzerland?
Do I lose my German residence if I spend a lot of time in Switzerland?
Can I be tax resident in both Germany and Switzerland?
Where is a Swiss holiday home taxed?
What happens if I let the holiday home for part of the year?
Do I need to report the Swiss property in my German tax return?
Can I buy a Swiss holiday home through a GmbH?
What are the tax consequences of a sale?
Further property guidance
Swiss property owned by German residents
Related areas of advice
When other areas of tax guidance become relevant
Germany–Switzerland tax advice
Do you own or plan to buy a holiday home in Switzerland?
We assess the acquisition structure, Swiss property taxation, German treaty implications, letting and financing, as well as the effect of the Swiss home on your tax residence where relevant.
Have your holiday home’s tax position reviewed