Alpine property rules: what buyers need to know
From energy ratings to foreign ownership restrictions, purchasing a chalet in France or Switzerland is subject to complex regulations that can significantly impact costs and usage rights
2 minutes to read
Buying in France
French property transactions are overseen by a notary, who ensures compliance with the law. For buyers, several regulations stand out:
- Energy efficiency: Every sale requires a diagnostic de performance énergétique (DPE), which grades a property’s energy performance. Stricter rules are being introduced, particularly for rental properties, so buyers of older chalets should be mindful of potential upgrade costs (see page 16).
- Letting rules and Airbnb: Properties can be rented, but short- term lettings may be subject to local restrictions. Many alpine communes have tightened rules on Airbnb-style rentals to protect housing supply for locals.
- New-builds and VAT rebates: When purchasing new-build properties that meet certain criteria for rentals, buyers may reclaim VAT (20%), significantly reducing costs. This makes serviced-apartment style developments particularly attractive.
- Taxes: Owners pay taxe foncière (land tax) annually, while residents also face a taxe d’habitation. High-value owners should also be aware of the real estate wealth tax (IFI), which applies to net French real estate assets above €1.3 million.
- Loi Montagne: The Loi Montagne II (2016) requires that some new- build properties in mountain zones be furnished and put up for rent throughout the season and not used for year-round living.
Buying in Switzerland
Switzerland offers stability and prestige, but the legal framework is complex and varies by canton.
- Lex Koller: This federal law restricts foreign buyers. Non- residents may only acquire holiday homes, with a maximum of 200 sq m of official living space, within designated tourist zones and subject to annual permit quotas. EU/EFTA residents with the right permit (B or C) face fewer restrictions, while non-EU resident buyers often have to wait until they hold permanent residency.
- Lex Weber: Since 2012, new holiday homes are capped at 20% of a commune’s housing stock. In many resorts this limit has already been reached, effectively banning new-build second homes and increasing the value of existing stock.
- Serviced apartments: By way of response, investors are turning to commercial “aparthotels” and serviced residences, which fall outside Lex Weber rules. These allow rental income while offering set periods of personal use.
- Taxes: Swiss taxation applies at federal, cantonal and communal levels, creating variation between resorts. Buyers face purchase taxes (0.5%-3%), notary and land registry fees. Capital gains tax applies on sale, with rates decreasing the longer the property is held.
The bottom line
Alpine ownership is rewarding, but both France and Switzerland require buyers to plan ahead for taxes, rental rules, and restrictions on use. Expert legal and fiscal advice is essential to avoid costly surprises.