For nearly a century, homeowners living in their own property have been required to declare an imputed rental value – a notional income corresponding to the use of their home. Introduced in the 1930s as a crisis measure, this rule was intended to ensure equal treatment with tenants, who pay their rent out of already-taxed income.
In practice, the tax authorities consider that a homeowner “grants themselves rent”. This value, set in most cantons at around 60% of market rents, varies according to several criteria: location, year of construction, condition, or property features.
For retirees who have repaid their mortgage, this taxation can become heavy: few or no deductible interest payments, yet an imputed rental value to pay despite a modest pension. By contrast, highly indebted households have so far benefited from generous interest deductions – which long fuelled the perception that the system encouraged indebtedness.
Parliament and the Federal Council now intend to abolish the imputed rental value. In return, cantons could introduce a real tax on second homes. This measure, which requires an amendment to the Constitution, will be subject to a popular vote on 28 September 2025.
The reform also provides for:
the abolition of maintenance deductions for primary residences, while keeping them for rental properties;
a sharp reduction in interest deductions, with a limited transitional regime for new homeowners;
the maintenance of deductions for listed buildings and, depending on the canton, for energy-efficient renovations.
The consequences will depend heavily on mortgage rates:
with low rates, lightly indebted homeowners would benefit, while young households with loans would be penalised;
with high rates, the abolition of interest deductions would be less costly for the state, which could even record a fiscal gain.
At this stage, the Federal Council estimates a shortfall of around CHF 2 billion per year, though projections remain highly uncertain.
Supporters highlight greater fairness and less administrative complexity. Opponents fear heavier burdens for new buyers, a slowdown in energy renovations, and an unequal distribution of benefits in favour of wealthy households.
The September 2025 vote will be decisive: if approved, the current system will gradually be replaced by a new cantonal tax on second homes. A reform that could benefit some homeowners, disadvantage others, and durably reshape housing taxation in Switzerland.