What is the maximum amount of a Swiss rental deposit?

According to the article, the deposit may be at most three months' net rent, meaning three times the base rent without utilities. The landlord must place it in a blocked bank account in the tenant's name.

When does the bank pay back the deposit?

The bank transfers the money once it receives the release declaration signed by both the landlord and the tenant. According to the article, the amount then arrives within a few working days.

Can the deposit be returned even if the person has already moved back to Hungary?

Yes, according to the article, a Swiss bank can also make an international transfer based on IBAN to a Hungarian account. For this, the Hungarian bank account's IBAN and the bank's BIC/SWIFT code may be required.

When may the landlord withhold part of the deposit?

The landlord may withhold money if there is outstanding rent, documented tenant damage, an unsettled utility bill, or an unfulfilled contractual obligation. According to the article, the block cannot be maintained indefinitely; if there is an open claim, it may last for up to one year.

What happens if the landlord does not sign the release declaration?

First, a written demand should be sent by registered letter, usually with a 10–14 day deadline. If that does not help, the tenants' association, the conciliation authority, and ultimately court proceedings may follow.

Do you have to pay tax on the returned deposit?

No, according to the article, the repayment of the deposit does not count as income, so it does not create a tax obligation either in Switzerland or in Hungary. The interest on the deposit could in principle be taxable, but in the current low-interest environment this is typically negligible.

What should be done in the case of a joint tenancy?

In the case of a joint tenancy, all tenants must sign the release declaration. If one tenant is unavailable, the document can also be signed by post or through an authorized representative, and in a disputed situation court proceedings may also be an option.

How do you get your rental deposit back when moving back from Switzerland?

What is the legal basis for the rental deposit in Switzerland?

The legal basis for Swiss tenancy law is the Civil Code (Zivilgesetzbuch / ZGB) and the Code of Obligations (Obligationenrecht / OR). The detailed rules on rental deposits are set out in OR Article 257e of the

The law states:

The maximum deposit amount is three months’ net rent (net = base rent excluding utilities).
The landlord is required to place the deposit in a blocked bank account (Sperrkonto) opened in the tenant’s name. This account is separate from both the landlord’s and the tenant’s assets.
Releasing the deposit requires the written consent of both parties, or a court order.

Important: the deposit is not the landlord’s property. They are merely its custodian. If the landlord fails to open a blocked account and instead accepts the deposit into their own account, they are committing a violation under the OR.

When and how should the tenancy agreement be terminated?

A proper notice of termination is a prerequisite for reclaiming the deposit. Notice periods and conditions can vary by canton and by contract, so the individual Mietvertrag always applies.

General rules:

Aspect	Typical rule
Notice period	Usually 3 months for apartments (different in some cantons and contracts)
Termination date	Most often only on dates specified in the contract (e.g. 31 March, 30 June, 30 September)
Form	Must be in writing, sent by registered mail (Einschreiben)
Early move-out	Possible if the tenant finds a suitable replacement tenant (Nachmieter)

If you want to move out before the required termination date, negotiate with the landlord. Swiss law allows the tenant to propose an acceptable replacement tenant — if the landlord accepts this person, the tenancy may end earlier.

How does the handover and inspection of the apartment work?

The most critical step in reclaiming the deposit is the handover of the apartment (Wohnungsabgabe / remise du logement). During the handover, the landlord or their representative and the tenant (or their representative) inspect the condition of the apartment together.

Steps in the handover:

Arrange an appointment with the landlord — preferably during the day, in natural light.
Prepare the apartment: cleaning, fixing minor defects, putting furniture back in place.
Joint inspection: the landlord documents any damage or deficiencies.
Handover report (Übergabeprotokoll / procès-verbal de remise)signature: this records the condition of the apartment, the meter readings, and any claims.
Returning the keys: all copies of the keys, including the mailbox key and the cellar entrance key.

Practical tip: at the handover inspection, take photos for documentation purposes, and do not sign any report that could later have items added to it. Ask for a copy of the signed document.

What needs to be put in order before moving out?

Swiss tenancy law distinguishes between normal wear and tear (normaler Verschleiß / usure normale) and damage caused by the tenant. The tenant is not responsible for normal wear and tear — that is the landlord’s risk.

What is usually the tenant’s responsibility:

Painting walls if the tenant painted them a darker color than permitted, or if the condition of the paint goes beyond normal wear.
Deeper scratches in the floor, burn marks.
Missing or damaged fixtures.
Furniture not removed, rubbish.
Mold, if it results from the tenant’s inadequate ventilation habits.

What is not the tenant’s responsibility:

Natural fading or cracking of paint over time.
Normal wear on the floor.
Minor wall scratches resulting from ordinary use of the apartment.

Swiss tenant associations (e.g. Mieterinnen- und Mieterverband / MV) publish detailed guides on what counts as normal wear and tear — these can vary slightly by canton.

How do you get your deposit back step by step?

Releasing the deposit is not automatic. You need to follow the process below:

Step 1 — Apartment handover and report At the handover inspection, both parties sign the Übergabeprotokoll. If the landlord has no claims, the process is straightforward.

Step 2 — Release declaration (Freigabeerklärung) If there is no dispute, the landlord and tenant jointly sign a release declaration, which must be submitted to the bank. The bank then transfers the deposit to the tenant’s account.

3. Step — Transfer The bank transfers the amount within a few working days of receiving the release declaration. Any interest accrued on the deposit also belongs to the tenant.

Step 4 — Transfer to a foreign account If you have already moved to Hungary, the Swiss bank can usually make an international transfer based on the IBAN. For this, you will need the IBAN of your Hungarian bank account and the BIC/SWIFT code of the receiving bank. It is worth checking in advance with the Swiss bank whether they have any special procedure for this, and whether you should expect a transfer fee.

When can the landlord withhold the deposit?

The landlord is entitled to withhold part or all of the deposit if:

Outstanding rent exists.
Damage caused by the tenant in the apartment, with documented repair costs.
Utility settlement has not yet been finalized (e.g. heating settlement, which may be delayed due to the annual billing cycle).
Contractual obligation not fulfilled (e.g. the apartment was not repainted if the contract required it).

The landlord may not withhold the deposit indefinitely. Under Article 257e of the OR, after the tenancy ends they may keep the funds blocked for up to one year if they have an open claim. Beyond that, they cannot withhold the deposit without court proceedings.

What should you watch out for with the utility settlement?

The heating and hot water settlement (Heizkostenabrechnung) usually arrives once a year, and it can be delayed by several months after the end of the billing period. If the tenancy ends in the middle of the billing period, the final settlement may take longer. In that case, the landlord may lawfully withhold part of the deposit until the settlement is completed — but only the proportional amount of the expected claim, not the full deposit.

What about shared rentals and a joint account?

If the apartment was rented jointly by several tenants (e.g. a couple or flatmates), reclaiming the deposit can be more complicated.

The Sperrkonto is usually registered in the names of all tenants.
For the release declaration, the signature of every tenant is required.
If one tenant already lives abroad, the declaration can also be signed by post or through an authorized representative.
If one tenant is unavailable or uncooperative, the other tenant can request the release of the deposit through the courts.

In the case of a power of attorney (Vollmacht), the authorized person must provide written proof that they are entitled to act on the tenant’s behalf. Some banks require a notarized power of attorney.

What can you do if the landlord does not pay back the deposit?

If the landlord refuses to sign the release declaration or unlawfully withholds the deposit, the following steps are available:

1. Written demand (Mahnschreiben) Send a written demand by registered mail, stating a deadline for payment (usually 10–14 days) and referring to Article 257e of the OR.

2. Tenants’ association (Mieterinnen- und Mieterverband / MV) In Switzerland, every major canton has a tenants’ association that provides legal advice and can intervene on your behalf. Membership typically costs around CHF 40–80 per year, but one-off consultations are also available.

3. Conciliation authority (Schlichtungsbehörde) In Switzerland, a conciliation procedure is mandatory in rental disputes before a court case can be filed. The conciliation authority (Schlichtungsbehörde in Mietsachen) operates at cantonal level, and the procedure is usually free or low-cost. A conciliation request can also be submitted if you no longer live in Switzerland — but it is worth appointing a local representative (lawyer, tenants’ association).

4. Court proceedings If conciliation does not lead to a result, a civil lawsuit can be filed. This is more expensive and time-consuming, so it is only worth pursuing if the amount withheld justifies it.

What deadlines should you watch for?

The right to reclaim the deposit can be enforced within the limitation period. Under the general limitation rules of the OR, monetary claims are typically enforceable within a 10-year limitation period — but it is always advisable to start actively asserting your claim as early as possible.

Special cases: for Hungarian readers living abroad

If you have already moved back to Hungary, or you leave Switzerland during the deposit-recovery process, the following points are relevant:

Closing a Swiss bank account Do not close your Swiss bank account until the deposit recovery has been completed. The refund of the deposit takes place between the bank managing the Sperrkonto and your account — if you do not have an active Swiss account, the bank can usually transfer the money to a foreign account, but this may be slower and may involve fees.

Postal contact details The Swiss landlord and the bank may also send documents by post. Provide a reliable Swiss postal address (e.g. a friend, former employer) or ask for communication by email if that is possible.

Appointing a representative If you cannot be present in person for the handover or administration, appoint a representative (Bevollmächtigter). This can be a Swiss acquaintance, a lawyer, or a representative of the tenants’ association.

Tax aspect The refund of the deposit is not considered income, so it does not create a tax obligation either in Switzerland or in Hungary. Interest accrued on the deposit could in principle be subject to Swiss tax — but in the current low-interest environment, this amount is typically negligible. If it does arise, the Swiss bank will provide information about withholding tax (Quellensteuer) deductions.

Sources

ch.ch — the official information portal of the Swiss Federal Administration: https://www.ch.ch
Schweizerisches Obligationenrecht (OR), Article 257e — rules on rental deposits (admin.ch legal database)
Mieterinnen- und Mieterverband (MV) — Swiss tenants’ association: https://www.mieterverband.ch
Schlichtungsbehörden in Mietsachen — list of cantonal conciliation authorities (on cantonal justice portals)