Imputed Rent in Switzerland

Hi Moneyguru,

I own a flat which I rent out to my mother for a very low rent, as she is retired and has a low income. The rent which she pays is around a quarter of the imputed rent for that flat.

Can I declare the actual rent which I receive for the flat in place of the imputed rent? I do not feel it is fair to pay tax on an imputed rental income which is much higher than the actual rental income which I earn on the flat.

I look forward to your feedback.

Hi there,

For federal tax purposes, there is an allowance for a lower imputed rental income when you rent out a property to relatives. However, the lowest acceptable imputed rental income for rentals to relatives is 51% of the standard imputed rental income.

Cantonal and municipal tax rules governing imputed rental income vary between cantons and municipalities. In many cantons, the standard imputed rental income rate applies even when this is higher than the actual rental income earned.

Best regards from Moneyguru