The imputed rental value (Eigenmietwert) is a notional rental income that homeowners in Switzerland must declare as income — even when they live in the property themselves. As of 2026, typical single-family-home owners pay CHF 1,500–4,500 in imputed-rental-value tax per year, depending on location and tax rate. On 28 September 2025 voters approved its abolition with 57.7% yes; the Federal Council has set the change to take effect on 1 January 2029. Until the end of 2028 the current rules still apply. This guide explains the calculation, the tax effect and what the reform means for buyers.
Imputed rental value is the notional market rent that you, as the owner of an owner-occupied property, would theoretically receive. It is added to taxable income, offset by mortgage interest and maintenance costs as deductions. The idea behind it: tenants pay with taxed income — owners 'save' this rent and should be taxed in the same way. A Swiss peculiarity — most European countries never introduced imputed rental value.
The method varies by canton. In the canton of Zürich, around 3.5% of the tax value is used, in Bern 4.0%, in Zug 3.2%. Federal tax is calculated uniformly using a lump-sum method (typically 60-70% of the market rental value). Example: An owner-occupied flat with a tax value of CHF 800'000 in Zürich → imputed rental value ~CHF 28'000/year. At a 30% marginal tax rate: CHF 8'400 additional tax per year.
Three main deductions reduce the tax impact: mortgage interest (fully deductible), maintenance costs (either a flat rate of 20% of the imputed rental value or actual costs — whichever is more advantageous), and ancillary property costs in some cantons. With an 80% loan-to-value ratio at an interest rate of 1.65%, this already means CHF 10'500 in interest — more than offsetting the imputed rental value. From a tax perspective, home ownership can therefore even have a negative burden (tax saving).
With high leverage (80%+) and high interest rates, the tax impact is neutral or even positive. With low leverage (below 50%) and low interest rates, however, imputed rental value applies in full: you pay tax on a notional rent without adequate deductions. As a result, many owners deliberately keep a moderate mortgage (66.7% loan-to-value, 1st mortgage) in order to preserve tax optimisation.
Voters approved the abolition on 28 September 2025 (57.7% yes, cantonal majority 16.5 to 6.5); on 1 April 2026 the Federal Council set it to take effect on 1 January 2029. Key points: the imputed rental value is dropped for owner-occupied primary and second homes. In return, mortgage interest on owner-occupied property is in principle no longer deductible, and the maintenance and renovation deductions also fall away. First-time buyers get a temporary interest deduction (max. CHF 10,000 for couples / CHF 5,000 for singles, falling 10% per year, zero after ten years). Cantons may levy a new property tax on second homes. On balance: low loan-to-value owners benefit strongly, highly leveraged owners tend to lose out.
During the transition until the end of 2028, an optimised mortgage and renovation strategy pays off: if you are planning larger value-preserving renovations, carry them out before 2029 while the costs remain deductible. Because mortgage interest on owner-occupied property is no longer deductible after the system change, the logic shifts from maximum leverage towards amortisation. Important: factor the reform into your long-term financial planning — an 80% loan-to-value will be less worthwhile for tax purposes from 2029 than it is today.