The end of the imputed rental value (Eigenmietwert): what it means for homeowners

On 28 September 2025, Swiss voters approved the abolition of the imputed rental value (Eigenmietwert) with 57.7 percent. The Federal Council has set the start for 1 January 2029. Until the end of 2028, the old rules apply.

What the imputed rental value is

If you live in a home you own, Switzerland has so far taxed you as if you earned rent from yourself: a notional rental income set by the canton. In return, you could deduct mortgage interest and the cost of maintaining the property.

What changes from 2029

For the home you live in yourself:

• No more imputed rental value. The notional income disappears from the tax return.
• Maintenance costs are no longer deductible. Cantons may keep deductions for energy-saving and environmental measures and for listed buildings.
• Mortgage interest on your own home is no longer deductible. First-time buyers get a limited, declining deduction for the first years after purchase.

The change also applies to second homes you use yourself. In return, cantons may introduce a special property tax on second homes used mainly by their owners.

What stays the same

Property you rent out is not affected. Rental income remains taxable, and the costs of earning it remain deductible.

Who gains, who loses

Roughly: owners with a small mortgage and a well-kept home tend to pay less tax. Owners with high mortgages, or who planned large renovations, lose valuable deductions. The exact effect depends on the canton, the imputed value, the interest rate and the renovation plans.

Why the years until 2028 matter

As long as the old rules apply, maintenance on a home you live in can still be deducted. Renovations that were planned anyway may be worth doing before 2029 rather than after. Spreading large works over several tax years can also reduce progression. The same question applies to mortgages: with the interest deduction gone, paying back part of a mortgage may make more sense than before. Both are decisions to take with your own figures, not with a rule of thumb.

What I take from it

For homeowners, 2029 is less a tax change than a planning deadline. The cheapest moment to think about it is now, while every option is still open.

This note is general information, not individual tax advice. For your own situation, talk to a tax adviser, for example at Taxed.