Swiss Federal Tribunal clarifies furnished residence regulations

The Swiss Federal Tribunal has issued a ruling clarifying the legal distinction between furnished apartment rentals and organized furnished residence activities in Geneva. In decision 1C_668/2025, the court upheld the classification of several Geneva apartments as furnished residences rather than standard housing.

The court determined that several factors, when viewed collectively, indicated an organized accommodation business. These indicators included identical apartment layouts, contracts signed with companies closely related to the owner, unregistered occupants, unnamed doors, and the provision of cleaning services. Additionally, the fact that rental prices were set ‘on request’ contributed to this classification.

The ruling emphasizes that a standard lease agreement does not automatically guarantee a property will be treated as residential housing. Previous precedents have shown that short-term stays, nightly rentals, and the absence of rent guarantees can lead to a property being classified as a furnished residence, even in buildings lacking traditional hotel amenities like a reception or restaurant.