Homeowner taxation in Switzerland: what changes with the end of the imputed rental value

On 28 September 2025, Swiss voters approved the abolition of the imputed rental value (valeur locative). The Federal Council has set the reform to take effect on 1 January 2029. Until then, the current system continues to apply. The reform overturns the tax rules linked to property financing: this article, updated in November 2026, explains what applies today, what will change in 2029 and how to prepare.

For your main residence (and any second homes), you declare an imputed rental value, a notional income corresponding to the rent you could charge. In return, you can deduct:

• mortgage interest, which often offsets all or part of the imputed rental value;
• maintenance costs (repairs and renovations that preserve the property’s value), either actual costs or a flat rate depending on the canton;
• energy-saving and environmental investments.

Maintenance work carried out before the end of 2028 therefore remains deductible under the current rules, which is worth factoring into your renovation schedule.

• No more imputed rental value to declare for your main residence or second homes.
• End of the mortgage interest deduction for owner-occupied homes. For rented properties, interest remains deductible on a pro-rata basis.
• End of the maintenance cost deduction for owner-occupied homes. It remains available for rented properties.
• Energy savings: the deduction disappears at federal level, but cantons may keep it until 2050.
• First-time buyers: a specific interest deduction applies on a first purchase of a main residence, capped in the first year at CHF 10,000 for a couple and CHF 5,000 for a single person, then reduced each year over ten years.
• Second homes: cantons may introduce a special property tax to offset lost revenue.

The reform does not affect tied pension provision. Pillar 3a contributions remain deductible from taxable income (up to CHF 7,258 in 2026 for people affiliated with a pension fund). Since 2026, it is also possible to make retroactive 3a contributions for gaps arising from 2025 onwards.

Indirect amortisation, paying into a pledged pillar 3a instead of repaying the debt directly, therefore keeps a tax advantage. The trade-off between repaying and keeping debt should, however, be reviewed: without the interest deduction, a large mortgage loses part of its tax appeal, even if its cost remains moderate at current rates. Buying back pension-fund (2nd pillar) gaps also remains deductible. Good to know: the 3a limit rises to CHF 7,373 from 2027, see our article Pillar 3a in 2027 and indirect amortisation.

When you sell a property, the profit is subject to a special cantonal property gains tax. The rate generally decreases the longer you have owned the property, and value-adding work carried out during ownership as well as purchase and sale costs can be deducted from the gain. In most cantons, reinvesting the gain in a new main residence also allows you to defer the tax. These rules are not affected by the imputed rental value reform, so keep your renovation invoices.

Your property is included in your taxable wealth at its tax value, which is often below its market value. Mortgage debt is deductible from wealth. Depending on the canton, the wealth tax of an indebted homeowner can therefore remain moderate.

• Schedule major maintenance work before the end of 2028 if it is needed anyway.
• Review your amortisation strategy (direct, or indirect via pillar 3a) with a specialist before making a large repayment.
• If you are buying for the first time, include the first-time buyer deduction in your calculations.
• If you own a second home, keep an eye on your canton’s legislation.

To find out more, read our articles on equity requirements and the advantages of home ownership.

This article provides general information and does not replace personalised tax advice; rules vary from canton to canton. To review your financing, contact our advisors.