On September 28, 2025, the Swiss electorate approved the abolition of the imputed rental value. The reform is scheduled to be implemented on January 1, 2029. This will fundamentally change the taxation of owner-occupied residential property in Switzerland.

The imputed rental value was previously a fictitious income that owners of self-occupied properties had to tax. In return, mortgage interest and maintenance costs, among other things, could be claimed for tax purposes.

With the new regulation, the taxation of the imputed rental value for owner-occupied residential property will no longer apply in the future. At the same time, however, various previous tax deductions will be restricted or abolished. This particularly affects debt interest deductions as well as maintenance and, in some cases, energy-efficient renovation deductions. The changes mainly affect single-family homes and self-occupied condominiums.

It is important to distinguish between owner-occupied properties and classic income properties or multi-family houses. While the reform directly affects owner-occupied residential property, the previous tax principles largely remain for income properties. Rental income from rented properties remains taxable, and maintenance costs can generally still be claimed for tax purposes. This particularly applies to multi-family houses, rented condominiums, commercial properties, and classic investment properties.

For properties with mixed use, a distinction will be made between owner-occupied and rented areas in the future. Owner-occupied areas fall under the new system without imputed rental value, while rented areas continue to be treated according to previous tax law. This applies, for example, to multi-family houses in which owners themselves live in an apartment.

The abolition of the imputed rental value is considered a significant system change in the Swiss real estate market. However, market observers do not expect abrupt changes in real estate prices. Factors such as supply and demand, interest rates, construction activity, and population growth will remain decisive. While for owner-occupied residential property, financing and tax planning are likely to come more into focus in the future, income properties will continue to be primarily valued according to income and return.