The implementation date for changes in housing taxation, including the abolition of the imputed rental value, is due to take place in 2029, the Swiss Federal Council decided on April 1. To date, 2028 was considered the final tax year under the existing tax regime. The deferral by a year grants cantons additional time to prepare for the change in taxation. This is particularly important for cantons that rely heavily on tourism, as they need to decide if they want to implement a property tax on second homes.
Under the new system, not only will the imputed rental value be abolished, but also key tax deductions will be removed. Debt interest can no longer be deducted from taxable income, and neither can value-preserving refurbishments and renovations. A majority of home owners is likely to benefit from this change in the long term. Due to the one-year deferral, however, these benefits are also deferred.
Additional time for renovations
At the same time, the window of opportunity to carry out tax-optimized refurbishments and larger renovations has been extended.
Read our blog to understand the specific impact this change in tax system has and how to best benefit from the time remaining.
