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Reform · PPE · Switzerland

Condominiums in Switzerland (PPE): the renovation fund reform (Federal Council message, May 2026)

Published · Read time: 6 min

In short: on 13 May 2026 the Federal Council adopted a message revising the law on condominium ownership by floors (PPE). The renovation fund does not become compulsory, but an owner could, under conditions, ask a judge to order its creation after the meeting refuses. Status: bill before Parliament, not in force.

The PPE in brief

Ownership by floors (PPE) has existed in Switzerland since 1965. Each owner holds a co-ownership share in the land and building, with an exclusive right over their apartment; some spaces (garden, roof terrace) may carry an exclusive right of use recorded in the rules. The community of floor owners is not a legal entity, but it can sue and be sued.

The community may manage itself; beyond a small number of units, a professional administrator, appointed by the meeting, is recommended. The meeting is held at least once a year.

The renovation fund today

According to JuriUp, setting up a renovation fund currently depends on the administration and use regulations or a decision of the meeting; a minority owner cannot impose it. Banks and the Swiss association of floor owners recommend in practice paying into the fund every year (around 0.2 to 0.3% of the building's insured value) and aiming eventually for 6 to 8% of that value. These are practices, not legal rules.

What the bill provides

What the PPE reform bill provides, according to JuriUp (bill, not in force)
PointContent of the bill
Renovation fundNo obligation; court action to order creation or amendment of the fund after the meeting refuses
Who may sue?At least two owners, or one if the community has two or three members
ProcedureSummary procedure; the judge sets annual contributions and duration
Off-plan salesA distribution plan is filed with the land register along with the constitutive deed
Construction defectsCoordination meeting; repair possible with the agreement of a majority of owners representing more than half of the shares

Where does the procedure stand?

The message was adopted by the Federal Council on 13 May 2026. The bill is before Parliament. After the final vote and the expiry of the referendum period, the Federal Council will set the date of entry into force: no date has been announced. The bill's article numbers may change and must not be cited as law in force.

To verify: we could not read the text of the message or the Civil Code on Fedlex; this article relies on a law firm (JuriUp, updated 3 October 2026) and on bank guides. Check Fedlex and the Parliament website for the bill's current status.

Meeting majorities, according to the guides

What to do now

Read more

Sources

Frequently Asked Questions (FAQ)

Will the renovation fund become compulsory in a PPE?
No: the Federal Council gave that up. The bill would only create a right to ask a judge to order its creation or amendment after the meeting refuses.

Is the PPE reform in force?
No. The message was adopted on 13 May 2026; the bill is before Parliament and no date of entry into force has been set.

What contribution is recommended for a renovation fund?
Guides cite 0.2 to 0.3% of the building's insured value a year, aiming for 6 to 8% over time. These are recommendations, not obligations.

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Informational article based on secondary sources (JuriUp, UBS, Raiffeisen); official texts (Fedlex, Parliament) could not be consulted. Not legal advice.