Rent in Switzerland explained: Net rent, gross rent & rent reduction 2025

By Immoswipe Editorial Team · Last updated: 20 November 2025 · Guide: Rent in Switzerland

For most households in Switzerland, rent is by far the biggest monthly expense. At the same time, the system can be confusing: What exactly is the difference between net and gross rent, how are total housing costs calculated and when are landlords allowed to increase the rent – or obliged to reduce it.

In this guide, we explain in simple terms how rent works in Switzerland, which costs are permitted, how the Swiss mortgage reference interest rate affects your rent and in which situations you can request a rent reduction in 2025. You also get practical tips on how to assess whether your rent is fair.

If you are still looking for a new apartment, you can find current rental listings across Switzerland on immoswipe.ch, with filters for price, location, number of rooms and pet-friendly homes.

1. What counts as rent in Switzerland.

In Switzerland, the rent is the price you pay for the use of the apartment. Depending on how it is presented in the contract, you will either see:

• a net rent (without service charges), or
• a gross rent (including lump-sum or advance payments for service charges).

This distinction is crucial for your budgeting and for understanding adjustments to your rent over time.

2. Difference between net rent and gross rent

The terms are often used in listings and contracts but rarely explained. In short:

• Net rent: The base rent for the apartment, without service charges. This is the amount used to calculate rent increases or reductions (for example after changes in the reference interest rate).
• Gross rent: Net rent plus service charges. This is the amount you actually pay each month to the landlord or property manager.

When comparing apartments, make sure you always compare gross rents – otherwise an offer with a low net rent but high service charges may end up being more expensive overall.

3. How your rent is made up

Behind the rent you pay each month are several types of costs for the owner of the building, for example:

• Financing costs (mortgage interest and capital costs)
• Maintenance and repairs to the building
• Administration and property management
• Reserves for future renovations
• Location, demand and general market conditions

Under Swiss tenancy law, rents must not be abusively high. A rent can be considered abusive if it clearly exceeds comparable rents in the area or is no longer justified by the owner’s costs.

4. The Swiss reference interest rate

A key feature of the Swiss system is the nationwide mortgage reference interest rate (“Referenzzinssatz”). It is published regularly by the Federal Office for Housing and is based on the average interest rate of Swiss mortgages.

The reference rate is important because:

• If the rate rises, landlords can generally justify a rent increase (within limits).
• If the rate falls, tenants may be entitled to a rent reduction.

The reference rate and how it has changed over time is therefore one of the first things you should check if your rent has not changed for years or has recently been increased.

5. How to request a rent reduction in 2025

If the reference interest rate has been lowered since your current rent was set, you can often request a reduction of the net rent. This does not happen automatically – you must become active yourself.

Typical steps:

• Check your tenancy agreement for the reference rate on which your rent is based.
• Compare it with the current official reference rate.
• Use an online calculator from a tenants’ association or official body to estimate the possible reduction.
• Send a written request for a rent reduction to your landlord or property manager.

6. When rent increases are allowed

Landlords in Switzerland cannot simply increase the rent informally. They must use an official form and justify the increase. Common reasons include:

• An increase in the mortgage reference interest rate
• Inflation (consumer price index)
• Higher running costs, for example for maintenance or building services
• Value-enhancing renovations, such as energy-efficient windows or a new kitchen

As a tenant, you may contest a rent increase before the conciliation authority within a certain time limit if you consider it unjustified or excessive.

7. Planning your total housing costs

For realistic budgeting, it is not enough to look at the net rent alone. You should also include:

• Service charges (if not included in the rent)
• Electricity in the apartment
• Internet and TV subscriptions
• Household insurance and liability insurance

As a rule of thumb, many financial planners recommend that total housing costs should not exceed a certain percentage of your net household income. Especially in cities with high rents, it is worth checking carefully whether an apartment really fits your long-term budget.

8. What to do in case of disputes about rent

If you feel that your rent is too high, an increase seems unjustified or a requested reduction has been refused, you should proceed in a structured way:

• Carefully read the tenancy agreement and any rent increase notices again.
• Compare your rent with similar apartments in the same area, if possible using official statistics or tools from tenants’ associations.
• Ask the landlord or property manager in writing for an explanation or breakdown of the calculation.
• Seek advice from a tenants’ association or a specialised advisory service.
• If necessary, bring the matter before the local conciliation authority for tenancy matters.

9. Checklist: Is your rent fair.

More guides from Immoswipe

• Renting an apartment in Switzerland 2025: modern, digital, fair
• Planning a move in Switzerland
• First own apartment: checklist for young adults

10. FAQ: Rent in Switzerland