k-flash audio commentTaxation of imputed rental value
k-flash audio commentTaxation of imputed rental value

The case

The imputed rental value tax will only be abolished if the people and cantons approve Art. 127 para. 2bis of the Federal Constitution, which grants the cantons the right to levy a special tax on predominantly owner-occupied secondary properties. The Swiss will to to the polls on 28 September 2025.

Source: EStV

The commentary

If the bill is adopted, it is expected to come into force in 2026 at the earliest, or more realistically as of 2028, depending on the implementation period by the federal government and the cantons.

What does the adoption mean for homeowners? The imputed rental value will be abolished for main residences and second homes. Tax deductions for maintenance will be abolished and the debt interest deduction will be severely restricted and limited to rented properties, with the exception of a transitional arrangement for first-time buyers.

Owners who own debt-free residential property and claim hardly any maintenance costs will benefit the most, i.e. the abolition of the imputed rental value tax brings real tax relief. For owners with maintenance costs or high debt interest, the loss of deductions can ultimately result in higher taxes.

In the case of second homes, for example in mountain and tourist regions, the cantons will be able to levy a property tax on owner-occupied second homes. This property tax replaces the abolition of the imputed rental value income. The property tax is optional cantonal leeway, but is only possible if the vote is accepted at federal level.

What can you do now? Keep an eye on the voting documents from summer 2025, especially on the cantonal property tax initiative. Homeowners with high interest cost  or maintenance costs should prepare for a possible changeover. It could be wise to plan  refurbishments and renovations so that they are carried out before the change comes into force in order to take advantage of current deduction options.

If you have any questions about the cantonal property tax regulations with specific tax calculations, please let us know.

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