The Second Homes Act is the single most important piece of legislation affecting the Gstaad property market. It permanently caps the supply of holiday homes and makes every existing second home more valuable. If you are buying property in the Saanenland, you need to understand what it does and how it affects your options.
The Short Version
Switzerland's constitution limits second homes to 20% of total housing units in any municipality. Saanen (the municipality that includes Gstaad) is well above this threshold. This means no new second homes can be built in the Gstaad area. The existing stock is effectively frozen.
How It Came About
In March 2012, Swiss voters approved the "Second Home Initiative" (Zweitwohnungsinitiative), proposed by environmental activist Franz Weber. The initiative added Article 75b to the Federal Constitution, capping second homes at 20% of a municipality's housing stock.
The implementing law (Zweitwohnungsgesetz, ZWG) came into force on 1 January 2016, after several years of transitional rules and Federal Court decisions. The Federal Court ruled that the 20% cap applied to building permits issued from the date of the vote, March 2012, even before the implementing law existed.
Why Voters Approved It
The initiative passed narrowly (50.6% yes) on the argument that unchecked holiday-home construction was damaging Alpine landscapes, displacing local residents, and creating "cold beds" in villages where most housing sat empty outside peak season. Opposition was strongest in the affected Alpine cantons, but lowland voters carried the day.
The 20% Rule
How It Works
Every Swiss municipality is assessed annually for its share of second homes (Zweitwohnungsanteil). The Federal Office for Spatial Development (ARE) publishes the inventory each March.
- Above 20%: No new second homes may be built. Existing second homes may be sold, but the stock cannot grow.
- Below 20%: New second homes are still possible, subject to cantonal and municipal planning rules.
- The 2026 count: As of March 2026, 331 Swiss municipalities are above the 20% threshold. This includes the vast majority of major alpine resorts.
Saanen's Position
Saanen municipality has been above 20% since the law took effect. The Bern Administrative Court confirmed Saanen's status in rulings in 2014 and 2022. The municipality is well above the threshold, not marginally over it.
This is not going to change. The only way for Saanen to drop below 20% would be a massive increase in primary-residence construction, which the land-use constraints of the Saanenland make practically impossible.
What It Means for Buyers
What You Can Buy
- Existing second homes: You can purchase any existing property classified as a second home, regardless of the 20% rule. The restriction applies to new construction, not to resale.
- Primary residences: New primary-residence construction is unrestricted, as it does not add to the second-home count. If you plan to live in Gstaad as your primary domicile, the Act does not limit your options.
- Tourist accommodation: New construction classified as "structured tourist accommodation" (touristisch bewirtschaftete Wohnung) is permitted under specific conditions (see below).
What You Cannot Buy
- A new-build second home: Cannot be built. If someone offers you a "new chalet" in Gstaad as a holiday home, ask very carefully about the legal classification.
- A converted primary residence used as a second home: Converting a property from primary to second-home use is restricted and requires careful legal review.
What You Should Check
Before buying any property in the Saanenland, verify:
- The property's current classification: Is it registered as a primary residence, a second home, or tourist accommodation? This is recorded in the land registry.
- Change-of-use restrictions: If you plan to buy a primary residence but use it as a holiday home, understand the legal implications.
- Renovation limits: Existing second homes can be renovated, but floor-area expansion is generally restricted. The rules on what constitutes "renovation" vs "expansion" have been tested in court.
The Tourist Accommodation Exception
The Act includes an exception for "structured tourist accommodation" (touristisch bewirtschaftete Wohnungen). This is the only route to new construction that is not a primary residence.
What Qualifies
To qualify as tourist accommodation rather than a second home, a unit must be:
- Commercially managed: Offered to the public on a permanent basis for short-term rental
- Part of a structured operation: Managed by a hotel or professional accommodation business, not simply listed on a booking platform by the owner
- Subject to rental obligations: The owner cannot use the property exclusively for themselves. A minimum period of commercial availability is typically required.
What This Means in Practice
Some developers have built "tourist apartments" in the Saanenland under this exception. These are typically:
- Apartments within a hotel or managed-residence complex
- Subject to mandatory rental programmes (e.g., available for tourist rental for a minimum number of weeks per year)
- Managed by a professional operator
- Priced below comparable unrestricted chalets, reflecting the usage limitations
The Limitations
- You cannot live in it full-time. It is not a primary residence.
- You cannot use it exclusively as your private holiday home. The rental obligation is real.
- Returns on the rental programme are often modest. Alpine occupancy rates outside peak weeks are low.
- Exit is constrained. Selling a tourist-accommodation unit to a buyer who wants a private holiday home requires navigating the same restrictions.
We advise caution with tourist-accommodation purchases unless you genuinely intend to participate in the rental programme and understand the legal framework fully.
Hotel Cross-Financing
Parliament included a provision allowing hotels to build holiday apartments as a cross-financing mechanism. The logic: a hotel that would otherwise not be financially viable can sell or rent apartments to fund its operation.
These units may have more flexible usage terms than standard tourist accommodation, depending on the specific permit conditions. But they are still subject to the Second Homes Act framework and are not equivalent to unrestricted second homes.
Impact on Prices
The Second Homes Act is the primary structural driver of Gstaad's property prices. Its effects:
Supply Freeze
No new second homes can be built, ever, in any municipality above 20%. In Gstaad, this means:
- The total stock of unrestricted holiday homes can only shrink (through conversion to primary residences or demolition), never grow
- Every existing second home becomes incrementally more scarce
- Land that might otherwise have been developed for holiday homes is taken out of play permanently
Price Support
The supply freeze creates a permanent floor under prices. Even in periods of weak demand, the stock cannot expand to meet a future recovery. This is fundamentally different from a market like Courchevel or Chamonix, where new construction can respond to demand.
UBS data supports this: Gstaad now leads all Swiss alpine resorts on holiday-home prices (CHF 25,000/m² in the UBS Alpine Property Focus 2026), and the supply constraint is the most commonly cited reason.
Renovation Premium
Since you cannot build new, renovated existing homes command a premium. A fully modernised chalet with contemporary finishes trades at a significant premium over one in original condition, because the alternative (build new) is not available.
Recent Developments
Parliamentary Loosening (2024)
In the spring 2024 session, the Swiss Parliament approved a partial relaxation of the Second Homes Act restrictions. The details are being implemented at the cantonal level. The changes are expected to allow:
- More flexibility for renovation and rebuilding of existing second homes
- Potential expansion of existing second-home floor area under certain conditions
- Simplified rules for mixed-use properties
These changes do not affect the core 20% cap. They loosen what you can do with an existing second home, not whether new ones can be built.
Cantonal Discretion
Cantons can impose stricter limits even in municipalities below 20%. Canton Bern's implementation of the national rules applies to Saanen, and the cantonal building authority is the relevant decision-maker for individual cases.
How This Affects Different Buyers
Swiss Nationals Buying a Holiday Home
You can buy any existing second home freely. But you cannot commission a new-build chalet as a second home. If you want to build, you must make it your primary residence.
Foreign Buyers Under Lex Koller
The Second Homes Act and Lex Koller interact. As a foreign buyer with Lex Koller authorisation, you can purchase an existing holiday apartment. The Second Homes Act does not restrict your purchase of existing stock. But it does mean the apartment you buy is part of a permanently fixed supply.
Families Relocating
If you are moving to Gstaad as your primary residence, the Act is actually in your favour. You face no restrictions on purchasing or building, and the supply constraint means your property is protected by structural scarcity.
Investors
The Act makes Gstaad a fundamentally different investment proposition from most real estate markets. The supply constraint is permanent, institutional, and constitutional. See the full investment analysis.
Frequently Asked Questions
Can I build a new chalet in Gstaad as a holiday home? No. Saanen municipality is above the 20% second-home threshold. New second-home construction is prohibited.
Can I buy an existing second home? Yes. The Act restricts new construction, not the sale of existing properties.
Can I renovate my second home? Yes, within limits. Minor renovations are permitted. Floor-area expansion is generally restricted, though the 2024 parliamentary changes may loosen this. Consult the cantonal building authority for your specific case.
What is the difference between a second home and tourist accommodation? A second home is for your private use. Tourist accommodation must be commercially managed and available for short-term rental. The usage obligations are legally binding.
Will the 20% rule ever be relaxed? It would require a constitutional amendment, which means a national referendum. Given that the original initiative passed and the political climate continues to favour landscape protection, a reversal is unlikely.
Does this apply to Rougemont? Rougemont is in canton Vaud, not Bern, and is separately assessed. It is also above 20%. The same core restrictions apply, though cantonal implementation differs.
For a confidential conversation about your search or sale, contact The Gstaad Collection.
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