Property
Switzerland — Property: Property Taxes
Swiss voters and cantons approved on 28 September 2025, with 57.7% in favour, the abolition of taxation of the imputed rental value (Eigenmietwert) of owner-occupied homes. The Federal Council set the reform to take effect on 1 January 2029, covering both primary and secondary residences; with it the deduction for property maintenance costs also falls away at federal, cantonal and communal level, while deductions for rented-out property remain. Cantons may introduce a property tax on second homes to compensate, and whether they do is up to each canton. Until 2029 the Eigenmietwert still applies. Transfer taxes and annual property taxes are set by the cantons; ask the cantonal tax office.
Why this matters
The notional rental value (Eigenmietwert) is the most commonly misunderstood Swiss property tax feature for newcomers — it means owning your home outright still increases your taxable income every year, offset partially by mortgage interest deductions, so the real tax cost of ownership isn't just the visible property tax line.
Key facts
- Voters and cantons approved the abolition of imputed rental value taxation on 28 September 2025 (57.7% yes).
- The Federal Council set the reform to take effect on 1 January 2029, for primary and secondary residences.
- The deduction for property maintenance costs also falls away at federal, cantonal and communal level; deductions for rented-out property remain.
- Cantons may introduce a property tax on second homes; whether they do is up to each canton.
- Until 2029 the imputed rental value still applies.
Steps
- Confirm the property's official tax value — Cantons assign an official value (often below market price) used as the base for property and wealth tax.
- Declare Eigenmietwert annually — Include notional rental value in the annual tax return alongside actual income.
- Claim mortgage interest and maintenance deductions — Offset the Eigenmietwert addition using deductible mortgage interest and either actual or flat-rate maintenance costs.
- Budget for transfer tax at purchase and gains tax at sale — Check the specific canton's transfer tax rate and the Grundstuckgewinnsteuer sliding scale before transacting.
Timelines
- Abolition of imputed rental value taxation: From 1 January 2029
Common mistakes
- Assuming the Eigenmietwert is already abolished — it applies until the end of 2028.