On April 1, 2026, the Federal Council announced that the abolition of the imputed rental value will come into effect on January 1, 2029. This sets the date for a system change that the Swiss electorate had already approved on September 28, 2025, with 57.7 percent voting in favor – after more than 90 years and three failed attempts, one of the most protracted tax policy conflicts in Switzerland. For homeowners, this means that the biggest change to the tax system in decades now has a concrete timeline. What exactly is changing – and what does this timeline mean for your own planning?
Abolition of imputed rental value: What exactly is being eliminated
Previously, property owners had to pay tax on the so-called imputed rental value as fictitious income, i.e., the amount they would theoretically receive as rent for their owner-occupied property. This taxation will be completely eliminated in the future – for both primary and secondary residences.
What is restricted in return
The system change is not simply a tax break, but a trade-off: In return for the elimination of the imputed rental value, the existing deduction options are significantly restricted. Specifically, this affects:
- Deduction of interest on debtMortgage interest payments can no longer be deducted from income to the same extent as before. Parliament has opted for the stricter version, which the National Council pushed through in the conciliation conference.
- Maintenance costsThe deductibility of property maintenance and renovation costs will also be restricted.
- New property tax on second homesCantons – especially tourism-dependent cantons – will be granted the authority to introduce a special property tax on second homes that are predominantly owner-occupied, in order to compensate for potential revenue shortfalls. Each canton will decide independently whether and how to implement this tax.
Whether the switch is ultimately worthwhile depends heavily on the individual situation: Those who own a heavily indebted or mortgage-free property tend to benefit more than someone with a high mortgage and ongoing renovation projects.
The transition period until 2029
The Swiss Homeowners Association criticizes the chosen date and would have preferred earlier implementation in 2028. However, in practice, the chosen date means one thing above all: until it comes into effect on January 1, 2029, the imputed rental value remains taxable, and the current deductions for mortgage interest and maintenance can be used unchanged until then.
Should I sell my property before or after 2029?
Until 2029, the old logic remains in effect – anyone selling today will still be selling under the current system. However, those planning to sell in a few years should keep the transition period in mind: a renovation that is currently tax-deductible may have a different tax impact under the new system. The question of whether your canton introduces a new property tax on second homes also changes the calculations – especially in tourist regions. These transition years are the time when an early, concrete assessment of your situation pays off: How is the property currently financed, which planned renovations should be completed before 2029, and how will this affect a potential selling price?
WENET AG assists property owners with precisely this assessment – taking into account their individual financing situation and the regional market, rather than offering blanket statements. Anyone wishing to know how the reform specifically affects their property and the optimal time to sell can contact our team for a free consultation.
Note: This article is for general information purposes only and does not replace individual tax advice. For a binding assessment of your personal tax situation, we recommend consulting a tax expert.
Conclusion
The Federal Council has officially scheduled the changeover to the imputed rental value taxation system for January 1, 2029 – thus giving the referendum of September 2025 a concrete timeline. For property owners, this means: until then, the old system with full deductions for mortgage interest and maintenance will remain in effect; after that, the imputed rental value will be completely abolished, deduction options will be significantly restricted, and cantons will be able to introduce new property taxes on second homes. Anyone planning a sale or major renovations in the coming years should actively incorporate this transition period into their financial planning instead of simply waiting.
