End of imputed rental value in Switzerland: what changes for you

For decades, every owner-occupier had to pay a tax on a notional rent—the imputed rental value. On September 28, 2025, the Swiss people approved the abolition of this tax with 57.7% of the vote. UBS Switzerland. A historic change… but one whose concrete effects will not be immediate: understanding what is changing, what is disappearing, and what remains will allow you to make better tax and wealth management decisions today.

Tip of the day — The golden rule

Rental value is abolished in principle, but it remains due until the entry into force scheduled for around 2028: take advantage of the transition period to optimize your deductions while they still exist.

Why this is important

• A complete overhaul, not just a minor adjustment. The elimination of imputed rental value comes with the elimination of most of the tax deductions previously available—including those for maintenance costs and mortgage interest. This isn't all good news: you'll lose with one hand what you gain with the other.

• The window for deductions is still open, but for a limited time. The reform will not come into effect until 2028, to allow the cantons to compensate for their losses in tax revenue. Until then, you can still deduct your renovation and maintenance costs, as well as your passive interest, as before.

• The cantonal details are still to be defined. The cantonal implementation of the special tax on second homes remains to be determined—tax base, rates, and procedures. Depending on your canton of residence and the nature of your property (primary or secondary residence), the tax impact will be very different. It can vary significantly from canton to canton.

How to apply it today — 5-step checklist

1. Check if you have any maintenance or renovation work to plan. Many homeowners should carry out their renovation projects before the new regulations come into effect in order to take advantage of the remaining tax benefits. Raiffeisen: Plan these works before 2028 to further reduce costs.

2. Determine your situation: primary or secondary residence. The rules are not the same. Secondary residences will be subject to a new cantonal property tax, the rates and procedures of which will be set canton by canton.

3. Ask about the first-time buyer exception if you're buying now. People buying a property to live in for the first time can deduct a portion of their mortgage interest for ten years—up to CHF 10,000 per year for a couple, CHF 5,000 for a single person, with a 10% reduction on the initial amount each year. easyvote

4. Consult your trustee or tax advisor by the end of 2025–2026. The best strategy depends on your marginal tax rate, your remaining mortgage, and your canton. A personalized assessment is essential. This advice does not replace an individual tax assessment.

5. Follow the announcements from your canton. Concrete decisions regarding the new cantonal property tax (second homes) will be made gradually between now and 2028. Subscribe to communications from the cantonal tax administration.

Common mistakes to avoid

• Don't assume the elimination is already in effect. The vote has taken place, but the rental value remains taxable until the reform comes into force, likely in 2028. Do not remove this line from your tax return before the official announcement.

• Don't forget that deductions are also disappearing. Many homeowners focus on the elimination of the imputed rental value tax, without realizing that deductions for maintenance expenses and passive interest will also largely be eliminated. The net gain varies depending on each individual situation.

• Waiting until the last minute to renovate. We can expect a boom in last-minute renovations, which could significantly increase demand for tradespeople and drive up prices. Raiffeisen: Planning early helps avoid overheating the home improvement market.

Mini numerical example

Situation: Jean-Paul owns a house in Fribourg valued at CHF 750,000, with a mortgage of CHF 300,000 at 2% (i.e., CHF 6,000 in interest per year). The assessed rental value is CHF 18,000 per year. He plans to spend CHF 20,000 on facade renovations.

Today (until ~2028)	After the reform
+CHF 18,000 taxed (rental value)	✅ Deleted
– CHF 6,000 deductible (interest)	❌ Removed (except in exceptional circumstances)
– CHF 20,000 deductible (works)	❌ Deleted

Tip : By carrying out his renovations before 2028, Jean-Paul saves another CHF 20,000 in deductions—which translates to approximately CHF 6,000–8,000 in taxes, depending on his marginal tax rate. Waiting would cause him to lose this benefit permanently.

Key points to remember

Rental value is doomed, but so are tax deductions: the transitional period until 2028 is an opportunity to seize, not a mere administrative formality.

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