Real estate guide
Abolition of the imputed rental value: what applies from 2029
The popular vote of 28 September 2025 approved the system change; the Federal Council has set its entry into force for 1 January 2029 — the new rules at a glance, with official sources.
Last updated on September 8, 2026 · Reviewed by our FINMA-licensed advisory team
In brief
The reform of home-ownership taxation was approved on 28 September 2025 with 57.7 percent of the popular vote and the majority of the cantons. On 1 April 2026 the Federal Council decided: the system change enters into force on 1 January 2029. From then on, the imputed rental value on owner-occupied residential property is abolished — on first and second homes alike.
In return, the deductions for owner-occupied homes fall away: maintenance costs remain deductible only for rented properties, and pure home owners can no longer deduct private debt interest. First-time buyers receive a limited-time, declining interest deduction — proportionately also for purchases from the ten years before entry into force. Up to and including the 2028 tax year, the current law applies unchanged.
This page provides general information and does not replace personal advice. As of 8 September 2026, without guarantee. Up to and including the 2028 tax year, the current law continues to apply in full; the cantonal implementation of individual points is still under way. Whether and how the system change affects a specific situation belongs in individual tax advice.
What was decided — and when it applies
The vote was formally on the federal decree on cantonal property taxes on second homes; legally tied to it was the federal act on the system change in home-ownership taxation. The result: 57.7 percent yes votes, 14 cantons and 5 half-cantons in favour — the people and the cantons approved the reform.
The Federal Council determines the entry into force. On 1 April 2026 it decided to bring the reform into force on 1 January 2029 — among other reasons, so that the cantons can introduce the new property tax on second homes at the same time.
Old and new system compared
The comparison shows the core points — the adopted legal texts are decisive:
| Point | Up to tax year 2028 | From 1.1.2029 |
|---|---|---|
| Imputed rental value (owner-occupied) | Taxable as income (DBG Art. 21) | Abolished — also on owner-occupied second homes |
| Maintenance costs (owner-occupied) | Deductible, effective or lump sum (DBG Art. 32) | No longer deductible; cantons may keep limited-time energy-saving deductions |
| Private debt interest | Deductible up to investment income plus CHF 50,000 (DBG Art. 33) | Only proportionately where taxable property income exists — pure home owners: no deduction |
| Rented properties | Income taxable, costs deductible | Unchanged: income taxable, maintenance deductible (DBG Art. 32a) |
The first-time-buyer deduction: limited and declining
Those who acquire a permanently and exclusively owner-occupied property in Switzerland for the first time can deduct debt interest for a limited time from the system change onwards: in the first tax year up to CHF 10,000 for married couples or CHF 5,000 for all others. The maximum then falls by 10 percent each year — the deduction phases out over ten years (new DBG Art. 33a).
The little-known point sits in the transitional provision: the deduction applies proportionately also to first-time purchases from the TEN YEARS BEFORE entry into force — for the tax years remaining within the ten-year window (DBG Art. 205g). Someone who first bought before 2029 can, from 2029, claim the deduction for the remaining years of their ten-year window.
Second homes: the new cantonal property tax
Because the imputed rental value is also abolished on owner-occupied second homes, the cantons receive a new constitutional basis: they may levy a special property tax on predominantly owner-occupied second homes (BV Art. 127 para. 2bis) — intended above all for tourism cantons.
In flux: whether and how the individual cantons introduce this property tax is open as of 8 September 2026 — the cantonal legislative procedures are under way. For second-home owners, the canton of location decides.
The timeline
28 September 2025
The people and the cantons approve the reform (57.7 percent yes, majority of 14 cantons and 5 half-cantons).
1 April 2026
The Federal Council sets the entry into force for 1 January 2029.
Up to and including tax year 2028
The current law continues to apply in full: tax the imputed rental value, deduct debt interest and maintenance.
From 1 January 2029
System change: no imputed rental value, new deduction rules, first-time-buyer deduction; cantons may introduce second-home property taxes.
Who the change affects
Descriptive, without judgement — how the system change plays out depends on the individual starting position and belongs in personal tax advice:
- Owners of owner-occupied properties: from 2029, the imputed rental value, the maintenance deduction and largely the debt-interest deduction fall away — the effect depends on the relationship between these positions in the individual case.
- Landlords: for rented properties, nothing changes about the system.
- First-time buyers: the limited-time interest deduction under DBG Art. 33a applies from 2029 — proportionately also for first purchases from the ten years before.
- Second-home owners: the imputed rental value is abolished here too; whether the canton of location introduces a new property tax is still open.
Taxes around the home at a glance: the financing guide →
What the system change means for your property depends on your specific situation — we are happy to discuss it with you, with no obligation.
Frequently asked questions
When will the imputed rental value be abolished?
Per 1 January 2029: the popular vote of 28 September 2025 approved the system change with 57.7 percent yes votes and the majority of the cantons, and the Federal Council set the entry into force for 2029 on 1 April 2026. Up to and including the 2028 tax year, the current law applies (source: Federal Council, media release of 1 April 2026).
What exactly was voted on?
Formally the federal decree on cantonal property taxes on second homes (a constitutional amendment) — legally tied to it was the federal act on the system change in home-ownership taxation, which abolishes the imputed rental value and reorganises the deductions (source: BBl 2025 17 and 23, FDF).
Can I still deduct maintenance costs from 2029?
For owner-occupied homes no — the maintenance deduction is abolished at federal, cantonal and municipal level; cantons may keep limited-time deductions for energy-saving and environmental measures. For rented properties the deduction remains (source: BBl 2025 23, new DBG Art. 32a).
Can I still deduct debt interest from 2029?
Only proportionately, to the extent that taxable income from immovable property exists (proportional method). Those who own exclusively owner-occupied residential property can no longer deduct private debt interest — the exception is the limited-time first-time-buyer deduction (source: BBl 2025 23, FDF fact sheet on the debt-interest rule).
What is the first-time-buyer deduction?
A limited-time debt-interest deduction for the first acquisition of a permanently owner-occupied property in Switzerland: in the first tax year up to CHF 10,000 (married couples) or CHF 5,000 (others), then falling by 10 percent per year, over ten years (source: BBl 2025 23, new DBG Art. 33a).
Does the first-time-buyer deduction also apply to purchases before 2029?
Yes, proportionately: the transitional provision extends the deduction to first purchases from the ten years before entry into force — for the tax years remaining within the ten-year window (source: BBl 2025 23, DBG Art. 205g).
What changes for second homes?
The imputed rental value is abolished on owner-occupied second homes as well. In return, the cantons may levy a special property tax on such properties based on the new constitutional provision — whether and how is decided by the respective canton of location; the procedures are still under way (source: BV Art. 127 para. 2bis, FTA).
What applies until the system change?
Up to and including the 2028 tax year, the current law applies unchanged: the imputed rental value is taxable as income, private debt interest is deductible up to investment income plus CHF 50,000, and maintenance costs can be claimed effectively or as a lump sum (source: DBG Art. 21, 32 and 33, as of 2026).
Sources
- Federal Council — media release of 1 April 2026: entry into force of the abolition of the imputed rental value in 2029
- Fedlex — Federal act on the system change in home-ownership taxation (BBl 2025 23)
- Fedlex — Federal decree on cantonal property taxes on second homes (BBl 2025 17)
- FDF — vote on the reform of home-ownership taxation (result)
- FDF/FTA — fact sheet on the new debt-interest rule (15.08.2025)
- FTA — dossier on the taxation of imputed rental values (February 2026)
- Fedlex — DBG (current law: Art. 21, 32, 33)
Every deadline and figure on this page has been verified against the official sources linked above. As of the date shown at the top. This page does not replace individual advice.
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