What is condominium in Switzerland (PPE): how to buy and manage it?
- Definition of condominium ownership (PPE) in Switzerland
- How does condominium ownership (PPE) work on a daily basis?
- Steps to buy an apartment in a PPE in Switzerland
- Example calculations for buying an apartment in a PPE in Switzerland
- Managing a condominium in Switzerland: charges, renovation fund and governance
- Cantonal specificities and practical information for Switzerland
- Advantages, risks and common mistakes in condominium ownership (PPE)
- Frequently asked questions about PPE
- Conclusion and important warning
More and more households in Switzerland are choosing condominium ownership, in the form of ownership by floors (PPE), to become homeowners with a lower entry cost than for a single-family house. But buying an apartment in a PPE does not just mean financing a place to live: you are joining a community, with rules, shared charges and collective decisions that will have a lasting impact on your wealth.
In this guide, we explain step by step what condominium ownership (PPE) involves, how the purchase process works, how to assess your mortgage budget and how to manage your status as a condominium owner in Switzerland. The aim is to help you make informed decisions and, if necessary, to be supported by a mortgage expert to optimise your project. Discuss my PPE project with an expert
Definition of condominium ownership (PPE) in Switzerland
A specific form of co-ownership
In Switzerland, ownership by floors (PPE) is defined in the Swiss Civil Code (CC), mainly in Art. 712a to 712t, in addition to the general rules on co-ownership (Art. 646 et seq. CC). A PPE is a particular form of co-ownership in which several people jointly own a building while each has an exclusive right to a defined unit (e.g. an apartment, a duplex, a closed parking space).
In practical terms, each co-owner holds:
- a co-ownership share in the entire plot and building (facades, roof, stairwells, technical installations, land, etc.);
- an exclusive right of use and modification over their unit (PPE lot), which is precisely described in the land register (floor area, storey, ancillary rooms, etc.).
This means that you own your apartment, but share and finance all the common parts of the building together with the other co-owners.
Legal framework and current developments
The PPE regime was introduced in Switzerland in the 1960s (it is defined by the articles of Chapter III of the Swiss Civil Code (CC)). Since then, it has become a central pillar of access to home ownership. According to the Federal Office for Housing (FOH), around 36% of Swiss households now live in owner-occupied housing (single-family house or PPE), a relatively low rate by European standards.
Given the growth in condominium ownership and the difficulties encountered in financing renovation work on buildings, the Confederation launched a consultation procedure in 2024 to adapt the law on ownership by floors. The possible reforms relate in particular to:
- clarifying the rules for creating a PPE, including for « off-plan » sales;
- strengthening the instruments used to set up and feed a renovation fund;
- introducing new rules on resolutions of the co-owners’ meeting and on sanctions in the event of repeated non-payment of charges.
As at 4 December 2025, these changes are still at the draft stage: they have not yet been incorporated into the Civil Code. When you buy, it is therefore essential to refer to the legislation in force (Swiss Civil Code, cantonal land register law) and to official documentation (Confederation, cantons, competent land registry).
How does condominium ownership (PPE) work on a daily basis?
Common parts and private parts
In a PPE, there are two main categories:
- Private parts (PPE lot): your apartment, your private balconies, your cellar or your indoor parking space if they are attached to your lot. You enjoy an exclusive right of use, subject to the regulations.
- Common parts: load-bearing structure, roof, facade, lifts, boiler room, technical rooms, bike rooms, access routes, land, etc. These elements belong to all co-owners in proportion to their co-ownership shares.
The PPE regulations and the descriptive statement in the land register specify what is classified as private or common. This is a key point to examine carefully before purchasing, as it determines how maintenance and renovation costs are shared.
Meeting of co-owners, administrator and regulations
The community is structured in a similar way to an association:
- the meeting of co-owners is the supreme body;
- a PPE administrator (a professional or a co-owner) manages finances, contracts and building work on a day-to-day basis;
- the co-ownership regulations set out the rules of communal living, the allocation of costs, how the meeting is run and the majorities required for decisions.
The PPE regulations and, where applicable, house rules complete the law and are binding on all co-owners. They define, for example:
- rules for using the common parts (noise, laundry rooms, bike rooms, gardens);
- rules relating to pets, short-term lets or professional activities;
- how meetings are convened, how votes are taken and how decisions can be contested.
Before buying, it is essential to read the PPE regulations in detail so that you do not discover important restrictions afterwards (e.g. ban on short-term letting (see frequently asked questions below), limits on building or renovation work, strict rules on parking, etc.).
You can fit out and alter your apartment as you wish, provided that you do not infringe municipal building regulations or the PPE regulations.
How to buy an apartment in a PPE in Switzerland: steps
Clarifying your needs and your mortgage budget
Before visiting apartments, it is advisable to assess your mortgage budget precisely, taking into account the practices of financial institutions in Switzerland. As a rule, banks apply the following principles:
- own funds of at least 20% of the purchase price, part of which must come from « hard » funds (savings, inheritance, etc.);
- a theoretical interest rate of around 4.5%–5% to test your financial capacity, even if market rates are lower;
- maintenance and ancillary costs estimated at around 1% of the property price per year;
- a total housing cost (interest, amortisation, maintenance) that should ideally not exceed around 33% of your gross income.
This approach helps ensure that your budget remains sustainable over the long term, including in the event of higher interest rates or unforeseen work in the condominium.
Analysing the PPE documents
When buying an apartment in ownership by floors, it is not enough to check the layout and condition of the apartment itself. You also need to analyse the overall health of the community of co-owners:
- PPE regulations, house rules, minutes of recent meetings;
- annual accounts, budget, status of the renovation fund;
- technical reports or surveys (heating, facade, roof, lift, etc.);
- planned major work (energy renovation, conversion from fossil-fuel heating, compliance work, charging stations for electric vehicles, etc.).
Major work scheduled in the short or medium term can have a significant impact on future charges and on your ability to service the mortgage debt. It is therefore better to factor this in from the outset when planning your purchase.
Promise of sale, financing and notarial deed
Once you have made your choice, the main steps are as follows:
- promise of sale or reservation agreement (depending on the developer or seller);
- mortgage loan approval from your bank or broker;
- signing of the deed of sale before a notary, with registration in the land register.
The notary ensures that federal and cantonal law (transfer taxes, fees, registration in the land register) is complied with. The notary also collects most of the acquisition costs (fees, registration duties), which vary from canton to canton and can amount to between 2% and 5% of the property price.
Example calculations for buying an apartment in a PPE in Switzerland
The examples below illustrate, for information purposes only, the financial impact of three condominium (PPE) purchase projects in Switzerland. The assumptions used are as follows:
- own funds: 20% of the property price;
- mortgage amount: 80% of the property price;
- theoretical annual interest rate: 4.5% (to assess the financial burden);
- annual maintenance costs: 1% of the property price;
- target financial burden: around 33% of the household’s gross income.
Scenario 1: apartment in a PPE at CHF 500’000.–
| Item | Indicative amount |
|---|---|
| Property price | CHF 500’000.– |
| Own funds (20%) | CHF 100’000.– |
| Mortgage amount (80%) | CHF 400’000.– |
| Acquisition costs (notary, transfer tax, land register, approx. 3%) | CHF 15’000.– |
| Theoretical annual interest on the debt (4.5%) | CHF 18’000.– |
| Estimated annual maintenance costs (1% of the price) | CHF 5’000.– |
Scenario 2: apartment in a PPE at CHF 750’000.–
| Item | Indicative amount |
|---|---|
| Property price | CHF 750’000.– |
| Own funds (20%) | CHF 150’000.– |
| Mortgage amount (80%) | CHF 600’000.– |
| Acquisition costs (approx. 3%) | CHF 22’500.– |
| Theoretical annual interest (4.5%) | CHF 27’000.– |
| Estimated annual maintenance costs (1% of the price) | CHF 7’500.– |
Scenario 3: apartment in a PPE at CHF 1’000’000.–
| Item | Indicative amount |
|---|---|
| Property price | CHF 1’000’000.– |
| Own funds (20%) | CHF 200’000.– |
| Mortgage amount (80%) | CHF 800’000.– |
| Acquisition costs (approx. 3%) | CHF 30’000.– |
| Theoretical annual interest (4.5%) | CHF 36’000.– |
| Estimated annual maintenance costs (1% of the price) | CHF 10’000.– |
In these three scenarios, the interest and maintenance amounts still need to be supplemented by the amortisation of the portion of the mortgage that exceeds two thirds of the property’s value, in line with usual practice in Switzerland. However, they do show the order of magnitude of the annual effort required for a condominium purchase.
The figures given above are purely indicative and may vary considerably depending on the canton, municipality, risk profile, type of property, lender, tax strategy and movements in interest rates. Check my budget for a PPE purchase
Managing a condominium in Switzerland: charges, renovation fund and governance
Condominium charges and allocation
Condominium charges cover all costs relating to the common parts:
- day-to-day maintenance (cleaning, minor repairs, gardening);
- operating costs (central heating, hot water, electricity for common parts, lifts);
- fees of the PPE administrator;
- building insurance and, where applicable, property taxes;
- contributions to the renovation fund.
The allocation between co-owners is laid down in the PPE regulations, in principle according to co-ownership shares, with sometimes different allocation keys for certain items (e.g. lifts, parking spaces, commercial units). A sound understanding of this allocation is essential in order to correctly anticipate your annual budget.
Renovation fund: an essential tool for preserving value
The renovation fund is a financial reserve set up by the community to finance major work on the common parts (roof, facade, heating, waterproofing, lifts, etc.). The Civil Code does not make such a fund compulsory, but many specialist organisations and co-owners’ associations recommend that a fund representing several per cent of the building’s insurance value be built up over time.
In practice, many PPEs aim for annual contributions corresponding to 0.3% to 0.5% of the building’s insurance value, or more for older or energy-inefficient buildings. The detailed amounts and rules for using the fund are set out in the PPE regulations or in the resolutions of the meeting of co-owners.
A renovation fund that is adequately funded reduces the risk of large, one-off contributions, which can often be difficult for some co-owners to afford. When analysing a PPE, pay particular attention to:
- the age of the building and the condition of its main elements (roof, facade, heating);
- the current level of the renovation fund compared with the work to be carried out;
- recent resolutions of the meeting of co-owners regarding contributions and work.
Governance, majorities and potential conflicts
As in any community, conflicts may arise (noise, parking, smoke, building work, etc.). The law on PPE contains rules on decision-making (simple majority, qualified majority or unanimity) and instruments for enforcing co-owners’ obligations (statutory mortgage, legal action, etc.).
Good governance is based on:
- clear and up-to-date PPE regulations;
- a competent and independent administrator;
- comprehensive minutes that are sent quickly to all co-owners;
- transparent communication on planned work and its financial implications.
If you are particularly sensitive to these aspects, it may be wise, right from the purchasing stage, to check the quality of the management and the general atmosphere within the community (participation rate at meetings, number of disputes, etc.).
Cantonal specificities and practical information for Switzerland
Transfer taxes and acquisition costs by canton
Acquisition costs for buying a condominium in Switzerland vary considerably from one canton to another. They generally include:
- transfer taxes (tax on the transfer of ownership);
- land register fees;
- notary’s fees.
In some cantons, part or all of the transfer taxes may be reduced when buying a principal residence or when transferring ownership within the family. In others, the rates are higher and can reach 3% or more. When planning your down payment, it is therefore important to take these cantonal differences into account.
Examples of cantonal frameworks
Several cantons publish detailed guidelines on how PPEs are created and managed, for example:
- cantonal guidelines on PPE documentation (allocation plans, descriptive statement), updated in recent years;
- recommendations on official surveying, entries in the land register and documents to be submitted when changing the structure of a PPE;
- practical guides on installing charging stations for electric vehicles in condominiums.
These documents enable buyers, notaries and property managers to apply legal requirements consistently. They also illustrate the role played by the cantons in regulating ownership by floors in practice.
Imputed rental value and tax deductions
As a condominium owner, you are in principle taxed on the imputed rental value of the home you occupy yourself. In return, you can deduct mortgage interest and certain maintenance costs, in accordance with federal and cantonal tax law. The choice between actual and lump-sum maintenance, as well as planning renovation work, can have a significant impact on your overall tax burden.
As tax rules are complex and vary from canton to canton, it is advisable to review them with a specialist when planning a PPE purchase, especially if you are also an investor or business owner.
Advantages, risks and common mistakes in condominium ownership (PPE)
Main advantages of a PPE
Buying an apartment in ownership by floors offers several advantages:
- access to home ownership is often more affordable than for a single-family house in the same area;
- maintenance and renovation costs for the common parts are shared between co-owners;
- there is potential to increase your wealth if the property market develops favourably;
- subject to the regulations, you can let the property to supplement your income or build up a portfolio of investment properties.
Main risks and sources of tension
However, condominium ownership also involves certain risks and drawbacks:
- collective decisions can sometimes be difficult to reach, particularly for major works or energy renovations;
- the renovation fund may be underfunded, leading to large one-off contributions;
- there may be differing views among co-owners (desired standard, priorities, intended holding period);
- the behaviour of certain co-owners can be problematic (late payment, failure to comply with the regulations, nuisance).
A careful review of the minutes of meetings and a direct discussion with the administrator will give you a good idea of the community’s atmosphere before you commit yourself.
Common mistakes to avoid
Among the recurring mistakes made when buying a condominium in Switzerland are the following:
- failing to read the PPE regulations and recent minutes in detail;
- underestimating long-term maintenance costs and the need for energy renovation;
- focusing solely on the price per square metre without examining the quality of the management and the level of charges;
- ignoring the tax impact (imputed rental value, deductions, wealth tax).
By taking the time to analyse these aspects, ideally with an expert, you will increase your chances of making a sound and sustainable investment.
Frequently asked questions about condominium ownership (PPE) in Switzerland
What is the difference between co-ownership and condominium ownership?
Co-ownership is the general concept of shared ownership of the same property. Condominium ownership is a specific form of co-ownership, governed by Art. 712a et seq. of the Swiss Civil Code, which grants an exclusive right of use and layout over one unit (apartment, lot) while sharing the common parts.
What is a condominium (PPE) regulation?
The condominium regulation is a mandatory document that sets out how the community is organised (general meeting, administrator), how the service charges are allocated, the voting rules and the rights and obligations of the co-owners. It supplements the law and is binding on all current and future co-owners.
What is a co-ownership regulation?
The term co-ownership regulation is sometimes used to refer to the condominium regulation or a house regulation that sets the rules for living in the building (use of the common areas, quiet hours, pets, etc.). In all cases, it is essential to read these documents before buying.
Is the renovation fund compulsory?
At present, the Swiss Civil Code does not provide for a general obligation to set up a renovation fund for a co-ownership property. In practice, however, a renovation fund is strongly recommended and is often provided for in the condominium regulation. The contributions and the conditions for using the fund are decided at the general meeting.
How are co-ownership charges calculated?
Co-ownership charges are generally shared according to the ownership shares of each unit, sometimes with specific allocation keys for certain items (lift, parking spaces, commercial areas). The details of these allocation keys are set out in the condominium regulation or in the resolutions of the general meeting.
How can you tell whether the condominium is well managed?
A few key indicators include the quality and regularity of the minutes, the clarity of the accounts, the existence of an adequate renovation fund, the level of participation in general meetings, transparency about planned works and the absence of recurring disputes. A meeting with the administrator can also give you a good overview of the situation.
Why use a mortgage expert to buy in a condominium?
An independent mortgage expert can help you:
– define a realistic budget that is in line with banking practice in Switzerland;
– compare several financing offers (fixed rate, SARON mortgage, mixed mortgage);
– anticipate the impact of co-ownership charges, upcoming works and taxes on your overall budget;
– secure the decision-making process and reduce the risk of costly mistakes.
Get personalised advice on my co-ownership project
Is condominium ownership (PPE) suitable for a first-time purchase?
Yes, condominium ownership is often suitable for a first-time purchase, as the entry ticket is generally lower than for a detached house. However, it is important to understand how the community of co-owners works, the charges, the condominium regulation and planned renovation projects before committing yourself.
What legal documents are required to buy a condominium (PPE)?
To buy a condominium (PPE) in Switzerland, you need at least the notarised deed of sale entered in the land register, as well as the descriptive schedule and allocation plan that define the units and their ownership shares. It is also important to have the condominium regulation, the latest minutes of the general meetings, the accounts, the level of the renovation fund and, where available, technical reports, in order to assess the legal, financial and technical situation of the building before buying.
What are the main rules in the condominium regulation in Switzerland?
The condominium regulation sets out how the community is organised (general meeting, administrator), the distinction between common and private parts, the rules for allocating charges and the different majorities required for decisions. It also sets out the rights and obligations of the co-owners (use of the common areas, works, parking, pets, rentals, contributions to the renovation fund) and applies to all current and future co-owners.
How can you consult the condominium regulation of a specific co-ownership?
To consult the condominium regulation of a co-ownership property, you can request it from the administrator, the seller-owner or the agency, as it forms part of the documents supplied to every purchaser. Some information relating to the PPE (descriptive schedule, entries in the land register) can also be obtained from the competent land registry office, which allows you to check that you have the latest version.
Can the condominium regulation be amended without the agreement of all co-owners?
The condominium regulation can be amended, but the conditions depend on the extent of the changes: for management adjustments, a qualified majority may be sufficient, whereas amendments affecting fundamental rights or ownership shares often require unanimity. Major changes must be decided at a general meeting and, where necessary, formalised in a notarised deed and entered in the land register.
How can the condominium regulation be enforced in the event of a dispute?
In the event of a dispute, the administrator and the general meeting will first try to resolve the situation through dialogue and written reminders, or even a formal notice. If the breaches persist (non-payment of charges, failure to comply with the rules), the community can resort to the measures provided for by law and by the regulation, such as registering a legal mortgage or bringing court proceedings, possibly after mediation or conciliation.
What happens if a co-owner does not pay their charges?
As a last resort, the community may enforce a legal mortgage over the ownership share of the defaulting co-owner and take legal action to obtain payment. Recent projects to revise the rules on condominiums also aim to strengthen some enforcement tools, but these changes are not yet in force.
What are the rights and duties of co-owners under the condominium regulation?
Co-owners have the right to use and fit out their PPE unit in line with its designated use, to attend general meetings, to vote and to be informed about how the building is managed, while sharing ownership of the common parts. In return, they must comply with the condominium regulation and the decisions of the general meeting, pay charges and contributions to the renovation fund, preserve the peace and safety of the building and not impair the structure or appearance without authorisation.
Can you rent out your condominium apartment in Switzerland?
In principle, it is possible to rent out a condominium apartment, subject to compliance with the co-ownership regulation and tenancy law. However, some regulations restrict short-term rentals or impose specific conditions. It is therefore important to check this point before buying if you are planning a buy-to-let investment.
To conclude: important warning
In Switzerland, condominium ownership (PPE) is a preferred way of becoming a homeowner while sharing the costs and responsibility for the building. When properly prepared, buying a condominium can be a sound investment, both as a place to live and as a way of diversifying your assets.
However, the success of your project depends on a thorough analysis of the property, the community of co-owners, the condominium regulation, the renovation fund, the charges and your financing strategy. Ongoing legal changes and cantonal specificities make it even more worthwhile to seek support from a specialist who knows the Swiss market and regulatory framework in detail.
Disclaimer : The information presented in this article is provided for general information purposes only. It does not constitute investment advice or personalised legal, tax or financial advice. The numerical examples are purely illustrative and do not prejudge the conditions that might be offered to you by a financial institution. Before taking any decision to buy, finance or sell a condominium property in Switzerland, you should consult a suitably qualified expert (mortgage adviser, lawyer, notary, tax adviser).
