rental value of house in Switzerland taxes
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End of rental value in Switzerland: what now?

ByJean-Michel

The verdict is in: the people and cantons have accepted the introduction of a special tax on second homesThis decision results in the removal of rental value, after numerous attempts at reform. But what does this change mean for property owners?

Official video of the confederation on the vote on Sunday, September 28, 2025 infographic rental value

Cantonal property tax on second homes and real estate in general: explanation of the change in the law

What is actually changing?

  • Removal of rental value : for both primary and secondary residences.
  • End of maintenance deductions on owner-occupied housing. Expenses remain deductible only for rental properties.
  • Non-deductible mortgage interest, except for first-time buyers: for 10 years, a limited deduction remains possible.
  • Limited deductions : restoration work on historic monuments remains permitted, but energy saving measures or demolition costs are no longer.
  • Compensation tax : tourist cantons can introduce a specific levy on second homes in order to compensate for tax losses.

When will the reform come into effect?

The new tax system should not apply before 2028, while the arrangements are put in place.

END OF THE TAX ON THE RENTAL VALUE OF REAL ESTATE IN SWITZERLAND

END of rental value tax!

Who benefits?

  • First-time buyers : they still benefit from a partial deduction of interest and bear few maintenance costs.
  • Retirees : often with little debt, they gain from the removal of rental value without being too penalized by the loss of deductions.

Who is less advantageous for?

  • Owners of old properties : they will no longer be able to deduct renovation costs or maintenance packages.
  • Highly indebted households : the end of the mortgage interest deduction makes their tax situation less favorable.

Should you amortize your mortgage?

The abolition of rental value raises the question ofdepreciation. But be careful: tying up your cash can reduce your disposable income and lower your overall return. It is better not to amortize it too quickly, in order to keep some reserves for unforeseen events or retirement.

Rental value: who wins or loses? At the tax level
–> The end of rental value marks a major turning point in Swiss real estate taxation. While some owners, particularly retirees and first-time buyers, will benefit, others will have to adapt their wealth management strategy to limit the negative effects.

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