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Guide

Indexed and graduated rent: does the reference rate cut apply?

Updated 23.09.2026 · Current reference rate 1.25 %

With a valid indexed lease the rent follows only the Swiss consumer price index; with a valid graduated lease it follows the agreed CHF steps – a reduction based on the reference rate is not possible during the fixed term. These clauses are only valid with a minimum term of five years (indexed) or three years (graduated); without it, the normal reference rate rule applies.

Contents
  1. Three lease types at a glance
  2. Indexed rent (Art. 269b OR)
  3. Graduated rent (Art. 269c OR)
  4. When the fixed term ends
  5. How to recognise your lease type
  6. Luxury flats and subsidised housing

Three lease types at a glance

Most Swiss residential leases are ordinary leases whose rent follows costs – above all the reference rate. Two special forms freeze this link for a fixed period: the indexed rent and the graduated rent. Whether you can claim a reduction after the reference rate cut depends on which type you really have.

Rent adjustment by lease type
Ordinary leaseIndexed rentGraduated rent
Rent followsReference rate, CPI (40 %), costsSwiss CPI onlyAgreed CHF steps
Valid only if–Landlord cannot terminate for ≥ 5 yearsTerm ≥ 3 years, max. one step per year, steps in CHF
Reference rate cut claimable?YesNo, during the indexed termNo, during the graduated term
Legal basisArt. 269a, 270a ORArt. 269b, 270c OR; Art. 17 VMWGArt. 269c, 270d OR

Indexed rent (Art. 269b OR)

With an indexed rent, the parties agree that the rent follows an index. This is only valid if the index is the Swiss consumer price index (CPI/LIK) and the lease is concluded for at least five years (Art. 269b OR). The ordinance specifies that a lease counts as concluded for five years if the landlord cannot terminate it for at least five years (Art. 17 para. 4 VMWG); a right of the tenant to terminate earlier does not prevent this.

During the indexed term:

  • the rent may rise at most by the increase in the CPI – 100 % of it, not just 40 % as in ordinary leases (Art. 17 para. 1 VMWG);
  • if the CPI falls, the rent must be reduced accordingly (Art. 17 para. 2 VMWG);
  • changes of the reference rate are irrelevant. Before the conciliation authority, a party can only argue that the requested change is not justified by the index (Art. 270c OR), subject to challenging the initial rent.

Increases based on the CPI must be announced at least 30 days in advance for the end of a month (Art. 17 para. 3 VMWG) and, like other increases, on the official form.

Graduated rent (Art. 269c OR)

With a graduated rent, the lease fixes in advance how the rent rises, for example "CHF 1,900 from 1.4.2025, CHF 1,950 from 1.4.2026". This is valid only if all three conditions are met (Art. 269c OR):

  1. the lease is concluded for at least three years;
  2. the rent is increased at most once a year;
  3. the amount of each increase is fixed in francs – not as a percentage or linked to an index.

Steps agreed in this way cannot be challenged, except by challenging the initial rent (Art. 270d OR). A reduction because of the reference rate is not possible during the graduated term. For the step notices themselves, a written notice suffices; the official form is not required (Art. 269d para. 5 OR).

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When the fixed term ends

After the fixed term, most leases continue indefinitely – and then the normal rules apply again. There is a trap for indexed leases: in its judgment 4A_252/2023 of 24 October 2023, the Federal Supreme Court ruled that adjustments for changes that occurred during the indexed term – including reference rate changes – must be requested for the end of the indexed term, observing the notice period. Anyone who fails to do so is deemed to accept the rent in force at that time as not abusive. Later requests are then measured from the reference rate at that point, not from the start of the lease.

In practice this means: look up in your lease when the fixed term ends and calculate back the notice period (usually three months to a customary termination date). Your request should reach the landlord before that. For graduated leases, the Federal Supreme Court has not decided the question in the same way; it is advisable to act for the end of the graduated term too.

The termination dates relevant for your municipality are listed on our page termination dates by canton.

How to recognise your lease type

The labels in the lease are not decisive – what counts is what was actually agreed. Checkpoints:

  • Reference rate and CPI both stated as "rent basis": this is the typical ordinary lease. The CPI figure only serves to calculate the 40 % inflation offset later. You can claim the reference rate cut.
  • Clause "the rent is adjusted to the CPI" and a minimum term of five years for the landlord: genuine indexed rent. The reference rate does not count until the end of the term.
  • Index clause without a five-year minimum term: the indexation is invalid (Art. 269b OR). The lease is treated as an ordinary lease – the reference rate rule applies. This mis-classification is common; our calculation engine automatically treats a lease as ordinary if no minimum term of at least five years can be found.
  • Table of future rents in CHF with dates, term at least three years: graduated rent.
  • Steps in percent or without a minimum term: the graduation is invalid; the normal rules apply.

Our lease check reads these clauses from your document, and you can confirm or correct the lease type before any calculation.

Luxury flats and subsidised housing

Two further groups are outside the rules on abusive rents:

  • Luxurious flats and single-family houses with six or more living rooms, not counting the kitchen (Art. 253b para. 2 OR, Art. 2 para. 1 VMWG). Both criteria must be met: the property must be luxurious and have at least six rooms. A 4.5-room flat with a high-end kitchen is not excluded, nor is a simply equipped 7-room house.
  • Housing whose provision was promoted by the public sector and whose rents are controlled by an authority (Art. 253b para. 3 OR). Here the authority decides on the rent, not the conciliation authority under Art. 270a OR. What matters is the official rent control, not just the fact that a flat is inexpensive or belongs to a cooperative.
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Frequently asked questions

My lease mentions the CPI. Do I have an indexed rent?

Not necessarily. Many ordinary leases state the CPI level as part of the rent basis, alongside the reference rate. An indexed rent only exists if the rent is agreed to follow the CPI and the landlord cannot terminate the lease for at least five years (Art. 269b OR, Art. 17 para. 4 VMWG).

Can I request a reduction with an indexed rent?

Yes, but only based on the index: if the CPI falls, the rent must be adjusted accordingly (Art. 17 para. 2 VMWG). The reference rate plays no role during the indexed term.

What happens when the fixed term of an indexed lease ends?

The indexation ends. According to the Federal Supreme Court (4A_252/2023 of 24 October 2023), adjustments for changes during the indexed term, including the reference rate, must be requested for the end of that term with proper notice. If you miss this, you are deemed to accept the rent.

Can I challenge a graduated rent step?

No. Except for challenging the initial rent, graduated rents cannot be challenged (Art. 270d OR). But the graduation is only valid with a lease term of at least three years, at most one increase per year and amounts fixed in CHF (Art. 269c OR).

Does rent control apply to large flats?

The rules on abusive rents do not apply to luxurious flats and single-family houses with six or more living rooms, not counting the kitchen (Art. 253b para. 2 OR). Both conditions must be met: a large but ordinarily equipped flat is not excluded.

Sources

  • Art. 253b, 269b, 269c, 270c and 270d Swiss Code of Obligations (SR 220)
  • Art. 2 and 17 VMWG (SR 221.213.11)
  • Federal Supreme Court, press release on 4A_252/2023 (indexed rent, end of indexed term)

Related guides

  • Reference rate 1.25 %: what does it mean for your rent?The Swiss reference rate has been 1.25 % since 2 September 2025. Who can claim a rent reduction, how much is possible and what landlords may deduct.
  • Rent reduction request (Herabsetzungsbegehren): template & sampleSample letter for a Swiss rent reduction request under Art. 270a CO: content, deadline, registered mail and what happens after the landlord replies.
  • Inflation, cost increases and more: checking your landlord's objectionsYour landlord rejects a rent cut citing inflation, costs or yield? How to check each objection under Swiss law, with the legal limits that apply.
  • Landlord refuses your rent reduction – what to do nextRefused, partly accepted or no reply: within 30 days you can apply to the conciliation authority – free of charge and with protection from eviction.

This guide explains the general legal position under Swiss tenancy law. It is not legal advice for your individual case. For disputes, contact your cantonal conciliation authority or a tenants' association.

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