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Change of System in the Taxation of Homeownership: Implications of the Imputed Rental Value.
Published by Michael Rose, 25.09.2025
The imputed rental value has been one of the most controversial elements of the Swiss tax system for decades. It is intended to place homeowners on an equal footing with tenants by taxing a fictitious income, while allowing deductions for maintenance costs and mortgage interest. Now this system is to be abolished and replaced with a simplified solution. At the same time, the cantons would be given the option to introduce a property tax on second homes. A step that offers opportunities, but also comes with side effects.
The imputed rental value is rooted in the idea of fiscal equal treatment between tenants and owners. Despite longstanding criticism, it has established itself as an important source of revenue for the federal government and the cantons.
"Investment properties will increasingly be held by legal entities."
Over time, the reality of the real estate market changed. Foreign acquisitions became increasingly professionalized, structured through legal entities, trust arrangements, or multi-tiered ownership chains, all of which are now examined before a transaction to assess whether they might result in significant foreign control.
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