Executive Summary

On April 1, 2026, the Federal Council decided to set the abolition of imputed rent value to take effect on January 1, 2029. Owner-occupied residential property will then no longer be subject to imputed rent taxation. In parallel, cantons can introduce a property tax on secondary residences to compensate for tax losses. The people and the cantons approved this federal decree in September 2025. The reform also eliminates maintenance cost and energy savings deductions from direct federal taxation.

Persons

(No individuals named)

Topics

  • Owner-occupied residential property taxation
  • Imputed rent value
  • Cantonal property taxes
  • Mortgage interest and deductions
  • Swiss tax reform

Clarus Lead

The postponement of the effective date from 2028 to 2029 is politically strategic: it gives cantons sufficient time to implement the new secondary residence tax at the same level and thereby stabilize their tax revenues. This coordinated transition prevents fiscal gaps and ensures the feasibility of a complex federal tax reform.

Detailed Summary

The reform of owner-occupied residential property taxation affects multiple deduction items simultaneously. For owner-occupied residential property, the imputed rent deduction, maintenance cost deduction, and (at federal level) energy savings and environmental protection deductions are eliminated. Cantons may maintain the latter on a time-limited basis. For rented or leased properties, the maintenance cost deduction remains; mortgage interest will in future only be recognized in proportion to the rented share of total assets.

To compensate for tax losses, cantons receive the option to levy a special tax on secondary residences. A new instrument for first-time homebuyers offers a time-limited and amount-limited mortgage interest deduction to lower entry barriers. The three-year postponement of the effective date (from 2028 to 2029) is intended to enable cantons and municipalities to implement their new tax systems in parallel and thereby maintain administrative and fiscal coherence.

Key Statements

  • Abolition of imputed rent value as of January 1, 2029 decided
  • Cantons can levy property tax on secondary residences as compensation
  • Maintenance cost and energy savings deductions eliminated for owner-occupied residential property
  • First-time buyer mortgage interest deduction as new support measure
  • Three-year transition period for cantonal implementation

Critical Questions

  1. Evidence/Data Quality: On what tax loss projections is the assumption based that a secondary residence tax will fully compensate for revenue losses from abolishing imputed rent value? Were regional differences taken into account?

  2. Conflicts of Interest: How will it be ensured that wealthy cantons with high secondary residence inventory do not benefit disproportionately, while structurally weak regions are disadvantaged?

  3. Causality/Alternatives: Why was a nationally uniform compensation tax not considered instead of requiring cantons to implement differentiated solutions? Which scenarios were examined?

  4. Feasibility: How will cantons and municipalities be supported in the technical and administrative implementation, particularly in distinguishing secondary residences and determining tax bases?

  5. Side Effects: Could the elimination of the maintenance cost deduction lead to neglect of property maintenance? What incentive mechanisms exist?

  6. Distributional Impact: How does the limited first-time buyer deduction affect different income groups? Is the target group (first-time buyers) appropriately defined?

Source Index

Primary Source: Federal Council Sets Abolition of Imputed Rent Value for 2029 – news.admin.ch, 01.04.2026 https://www.news.admin.ch/de/newnsb/yGTqBPowRqyVh0zPokW-q

Verification Status: ✓ 01.04.2026

This text was created with the support of an AI model. Editorial responsibility: clarus.news | Fact-checking: 01.04.2026