880 people search each month for "imputed rental value Switzerland". The imputed rental value is a Swiss peculiarity: as a homeowner, you must pay tax on a notional income — the rent you would theoretically pay for your own home. Sounds absurd? Yet it is the law in force.
What is the imputed rental value?
The imputed rental value is a notional income that homeowners must declare for tax. It corresponds to the rent a third party would pay for the same property — typically 60-70% of the market rental value. It is taxed as income (federal and cantonal tax).
How is it calculated?
The calculation varies from canton to canton. In principle:
Imputed rental value = market rent x correction factor (60-70%)
Example, villa in Zurich: market rent CHF 6'000/month
Imputed rental value: CHF 6'000 x 0.65 = CHF 3'900/month = CHF 46'800/year
At a marginal tax rate of 35%: CHF 16'380 additional tax/year
What can you deduct?
- Mortgage interest: Fully deductible (the biggest lever)
- Maintenance costs: Repairs, renovations (value-preserving)
- Insurance premiums: Building and natural-hazard insurance
- Administration costs: Condominium (Stockwerkeigentum) management
- Standard deduction: Alternatively 10-20% of the imputed rental value (cantonal)
Abolition of the imputed rental value?
Abolition has been under discussion for years. In 2024 the Council of States passed a bill that would remove the taxation of primary residences — in return, the deduction of mortgage interest and maintenance costs would also be abolished. The National Council still has to approve it. Time frame: 2027-2028 at the earliest.
What does this mean for you? In the short term, nothing changes. Plan renovations, where possible, BEFORE any potential abolition — afterwards, maintenance costs would no longer be deductible.
Questions about the imputed rental value and property ownership?
We are happy to advise you on the tax aspects of your property.
Request a consultationGeneral information, not tax advice. As of April 2026.