On September 28, 2025, Switzerland’s citizens voted to do away with imputed rental value for tax purposes. But the new system will also impact tax deductions for building maintenance and renovations.
One thing is clear: When the use of imputed rental value is discontinued, the cost of maintaining and renovation your home will no longer be deductible for direct federal tax purposes. The cantons will be able to choose themselves whether to eliminate these deductions for cantonal and municipal tax purposes, or continue offering them. It is not yet known how each canton will move on this matter.
When will imputed rental value be eliminated?
The exact date for the changes to the tax rules is not yet known. The Federal Council will decide on the timing in mid-2026.
The earliest date on which the change may occur is January 1, 2028. But many cantonal governments favor postponing the implementation until 2029 or 2030.
How can homeowners save taxes?
If you live in your own apartment or house, you can claim tax deductions for certain maintenance and renovation costs. Normally, you can deduct the costs of renovations required to maintain the value of your property.
There are special rules for some investments aimed at improved energy efficiency or environmental protection. Firstly, these kinds of renovations are tax deductible whether they are required to maintain or increase the property’s value. Secondly, these tax deductions can be spread across three tax years.
From a tax perspective it can make sense for home owners to carry out renovations during the period when tax deductions are still possible. These tax deductions can substantially reduce your taxable income, resulting in lower tax bills.
How can I finance a renovation?
If you do not have enough available funds, there are a number of alternative ways to finance a renovation. The most common options are a mortgage increase, a renovation loan, or a personal loan.
Take time to get informed about subsidies. For example, both the federal government and cantonal governments offer subsidies towards energy-efficiency renovations.
More on this topic:
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Get an overview of Swiss tax deductions
