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: status and consequences
The abolition has been decided: voters and cantons approved the reform in September 2025. On 1 April 2026 the Federal Council decided to bring the new rules into force on 1 January 2029.
From that date the imputed rental value on owner-occupied homes is no longer taxed. At the same time, the deduction of maintenance costs for owner-occupied homes ceases at federal, cantonal and municipal level; it remains for rented or leased property. The mortgage interest deduction is restricted, and first-time buyers receive a deduction that is limited in duration and amount. Cantons may also introduce a property tax on predominantly owner-occupied second homes; in many cantons this is still undecided. Source: Federal Council press release of 1 April 2026 (German).
What does this mean for you? The current rules apply until the new regime takes effect. How renovations, mortgage interest and a possible second-home tax affect you depends on your canton and your individual case. Clarify this beforehand with a tax professional.
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 October 2026.