News Taxes
Parliament decides to abolish imputed rental value
Did Parliament give homeowners a premature Christmas present on December 20, 2024? After decades of debate, the Parliament decided to abolish the imputed rental value just before Christmas last year.
After some political back and forth, a complete change of system was agreed, i.e. the imputed rental value for first and second homes will be abolished. The cantons, which will have to reckon with lower tax revenues due to the abolition of the imputed rental value, are to be granted the right to levy a property tax by constitution.
With the abolition of the imputed rental value, the tax deductions must also be restricted or abolished. Mortgage interest should only be deductible to a limited extent, although relief for first-time buyers of properties is being discussed. Maintenance costs should generally no longer be deductible, with the exception of energy-saving measures, demolition costs and the maintenance of listed buildings. The exact mechanisms are still being determined or implemented accordingly depending on the canton.
A popular vote will show whether the answer to the question of an early Christmas present is “yes”. This is required due to the necessary constitutional amendment for the introduction of the property tax on second homes. The date of the vote is not yet known.
It is therefore not yet possible to make any clear statements at present - due to the pending popular vote. There is therefore no need for homeowners to take action (yet). However, planned investments should be brought forward in order to fully benefit from the currently still possible deduction.
For individual advice or further information, please contact Remo Merz, certified tax expert, at remo.merz@fineac.ch.
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Remo Merz, February 2025