This is the most important decision you will make before buying property in Gstaad, and many buyers do not realise it until they are deep into the process. The Second Homes Act (Zweitwohnungsgesetz) has created two fundamentally different property markets within the same village: one for primary residences, one for second homes. Each comes with different rules, different restrictions, and different financial implications.
What the Second Homes Act Changed
In 2012, Swiss voters approved a constitutional amendment limiting second homes to 20% of the housing stock in any municipality. Saanen municipality, which includes Gstaad, was well above this threshold at the time and remains so today. The Bern Administrative Court has confirmed in multiple rulings (2014 and 2022) that Saanen's second-home share is "well over 20 percent."
The practical consequence: virtually no new second homes can be built in the Gstaad area. The existing stock of second homes is effectively frozen.
This single regulation shapes almost every aspect of the Gstaad property market.
How Properties Are Classified
Every residential property in Saanen municipality falls into one of these categories:
Primary Residence (Erstwohnung)
A property used as the owner's main domicile. The owner is registered as a resident of Saanen and lives there for the majority of the year. Primary residences are not restricted under the Second Homes Act and can be built, renovated, or expanded without the second-home limitations.
Old Second Home (Altrechtliche Zweitwohnung)
A property that was classified as a second home before the Second Homes Act took effect (11 March 2012). These properties retain their second-home status and can be sold to new buyers as second homes. They are the bulk of what is available to holiday-home buyers in Gstaad.
Tourist Accommodation (Touristisch Bewirtschaftete Wohnung)
A property classified as commercially managed tourist accommodation. These can be newly built even in municipalities above 20%, but they must be rented out for a minimum number of weeks per year and are subject to specific management requirements. This is the "warm beds" category.
Restricted Second Home
Some properties have specific restrictions tied to their permit, such as limitations on expansion, change of use, or rental. These restrictions are noted in the land registry.
Why the Classification Matters
For Buyers
The classification of the property you are buying determines:
- Whether you can use it as a holiday home: Only old second homes and tourist accommodations can be used as holiday homes. A primary residence must be your actual home.
- What renovations you can do: Second homes face stricter limits on expansion. In most cases, you cannot increase the floor area of an old second home.
- Whether a foreign buyer can purchase it: Under Lex Koller, non-resident foreigners can buy second homes (with authorisation), but they are buying into a fixed stock with no new supply.
- How much it costs: The supply constraint on second homes supports their prices. Primary residences, while more available, require you to actually live in Gstaad year-round.
For Sellers
The classification affects:
- Your buyer pool: A second home can be sold to both residents and holiday-home buyers. A primary residence must find a buyer willing to live there full-time (or accept reclassification restrictions).
- Your property's value: The second-home premium is real. An identical property classified as a second home may be worth more than one classified as a primary residence, because the buyer pool for second homes includes wealthy international holiday-home seekers.
The Financial Differences
| Primary Residence | Second Home | |
|---|---|---|
| Imputed rental value | Lower assessment (you live there) | Higher assessment (could be rented) |
| Mortgage deduction | Full deduction of mortgage interest | Full deduction |
| Maintenance deductions | Full deduction of maintenance costs | Full deduction |
| Wealth tax | Based on tax value | Based on tax value |
| Lump-sum taxation | Available to qualifying foreign nationals | Lump-sum residents must have a primary residence |
| Capital gains on sale | Sliding scale (holding period) | Same sliding scale |
| Community tax rate | Saanen municipal multiplier applies | Same rate |
The most significant tax difference is indirect: to buy a primary residence, you must become a Swiss tax resident. This means your worldwide income is subject to Swiss taxation (unless you qualify for lump-sum taxation). A second-home purchase does not require Swiss residency.
Becoming a Primary Resident
If you decide to make Gstaad your primary residence, you will need to:
- Obtain a residence permit (B or C permit). This is a separate process from buying property and depends on your nationality, employment status, and personal circumstances.
- Register with the Einwohnergemeinde Saanen as a resident.
- Enrol in Swiss mandatory health insurance within 3 months of registration.
- File Swiss tax returns on your worldwide income (or qualify for lump-sum taxation).
- Actually live there. The municipality can and does check whether primary-residence owners genuinely live in the property. Registering as a resident while actually living elsewhere is not a viable strategy.
The Lump-Sum Option
For wealthy foreign nationals who do not work in Switzerland, lump-sum taxation (forfait fiscal) offers an alternative to full income taxation. Instead of declaring worldwide income, you pay tax on an amount based on your Swiss living expenses, with a federal minimum of approximately CHF 435,000 for 2026.
Saanen/Gstaad has an estimated 180 lump-sum taxpayers who contribute significantly to municipal revenue. The availability of this regime in canton Bern should be confirmed with the cantonal tax office, as some sources report it has been tightened or abolished in certain cantons.
The Second-Home Reality
If you are buying a second home in Gstaad:
- Your choices are limited to existing stock. No new second homes are being built.
- You may face restrictions on expansion. The Second Homes Act generally prohibits increasing the floor area of old second homes.
- You can rent it out, subject to the property's specific classification and any restrictions in the land registry.
- You do not need Swiss residency. You remain a tax resident of your home country (though you will owe Swiss taxes on the imputed rental value and wealth attributable to the property).
- Lex Koller applies if you are a non-resident foreigner. You will need authorisation and can only buy apartments or attached properties (no detached chalets).
Common Scenarios
"I Want a Holiday Home But I'm Told to Register as a Resident"
This happens when a buyer's legal or tax advisor suggests registering as a primary resident to access detached chalets (not available to non-residents under Lex Koller) or to benefit from lump-sum taxation. It is a legitimate strategy but requires genuine relocation. You must actually live in Gstaad as your primary home.
"I'm Buying a Primary Residence But I Might Move Later"
If you buy a property as a primary residence and later move away, the property's classification may revert to a second home, subject to the Second Homes Act restrictions. This should be planned for in advance with legal advice.
"I Want to Convert My Second Home into a Primary Residence"
This is generally possible. Moving to Gstaad full-time and registering as a resident converts the usage. The benefit is that primary residences have more flexibility for renovation and expansion.
"I Want to Convert My Primary Residence into a Second Home"
This is where it gets complicated. Because Saanen is above the 20% threshold, creating a "new" second home (by converting a primary residence) may be restricted. Legal advice is essential.
Frequently Asked Questions
Can I buy a second home in Gstaad as a foreigner? Yes, with Lex Koller authorisation. You are limited to apartments and attached properties. Detached chalets are only available if you buy as a primary residence with a B or C permit.
What is the minimum time I need to spend in Gstaad if I register as a primary resident? There is no fixed number of days, but you must genuinely live there as your main home. The municipality can verify this through utility usage, travel records, and other indicators.
Does the Second Homes Act affect prices? Yes, significantly. By capping the supply of second homes, it supports prices for existing stock. This is one of the structural factors behind Gstaad's sustained property values.
Can I expand my second home? Generally no. The Second Homes Act restricts floor-area increases for old second homes. Minor renovations and maintenance are permitted, but check the specific restrictions on your property before purchasing.
Is it better to buy a primary residence or a second home in Gstaad? It depends on your life plans. If you can genuinely relocate to Gstaad, a primary residence gives you access to the full market (including detached chalets) and potential tax benefits. If you need a holiday home, the second-home market offers flexibility without requiring relocation, but at a more restricted property selection.
For a confidential conversation about your search or sale, contact The Gstaad Collection.
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