Rental value reform: Tax relief and new rules

On September 28, 2025, Swiss voters will vote on the abolition of the imputed rental value. This issue has been a topic of debate in Switzerland for decades, as the imputed rental value has been taxed as fictitious income for owner-occupied residential property since 1934. The reform marks a fundamental change in the system: In future, owners will no longer have to pay tax on the imputed rental value of their owner-occupied properties as income, but at the same time, the previous tax deductions for maintenance and debt interest will be restricted or abolished.

Imputed rental value and maintenance costs: Complete abolition of the imputed rental value; deductions for maintenance, renovations, and energy-efficient refurbishments will largely be eliminated. Conservation work remains deductible. Cantons may voluntarily allow energy-saving and environmental protection deductions (only for cantonal and municipal taxes).
Debt interest: Mortgage interest on owner-occupied properties is generally no longer deductible; only first-time buyers can claim a limited deduction during the first ten years. The deduction remains possible for rented properties, but is restricted (proportional restriction method).
Cantonal property tax: Cantons may levy a special tax on second homes to partially offset tax losses.

Impact:

Owners with amortized properties or retirees will benefit from the reform.
Households with high mortgages or older properties in need of renovation will be more severely affected.

Entry into force:

The date will be set by the Federal Council after the vote.
Transitional periods are generally at least two years; the earliest date of entry into force is January 1, 2027.

Conclusion:

The abolition of the imputed rental value will lead to a clear tax relief for many owners, but will reduce the advantages of maintenance and mortgage interest. Cantons can partially compensate for tax losses through property taxes on second homes. Overall, the reform represents a significant change in the Swiss home ownership tax system and will have a lasting impact on the tax situation of owner-occupied property.