The reference interest rate remains at the same level as the last time it was published, at 1.25%. It is valid for setting rents throughout Switzerland.
The reference interest rate is based on the weighted average interest rate for mortgages in Switzerland, which is set quarterly. It is published in quarter percent. The average interest rate on December 31, 2022, the reference date, was 1.33%, compared with 1.18% in the previous quarter. The reference interest rate used to calculate rents therefore remains at 1.25%, according to the rules of commercial rounding. It will remain at this level as long as the average interest rate does not fall below 1.13% or rise above 1.37%.
Since March 3, 2020, the reference interest rate has been 1.25%. As it has remained unchanged since the previous quarter, it does not give rise to any new claims for rent reductions or increases. On the other hand, if the rent for an individual lease contract is not based on the current reference interest rate of 1.25%, there is a right to its reduction on the basis of the previous reduction in the reference interest rate. In addition, other cost changes (e.g. deferral of the change in the consumer price index by 40%, changes in maintenance costs) may also entitle the tenant to a rent adjustment, which may be taken into account when calculating the rent reduction.
Since September 10, 2008, rents throughout Switzerland have been set on the basis of a single reference interest rate. This replaced the rates for variable-rate mortgages previously applicable in each canton. The legal basis is Article 12a of the Ordinance on Leases of Residential and Commercial Premises (OBLF).
Source: Federal Housing Office
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