Since 2024, the project to abolish imputed rental value in Switzerland has made significant progress. During the winter 2024 session, Parliament approved the elimination of this tax for both primary and secondary residences, thus putting an end to a long-standing taxation system. This reform also includes the removal of deductions for maintenance expenses and a strict limitation on mortgage interest deductions, which will now only be allowed for rented or leased properties under a more restrictive proportional method.
This change is the result of more than seven years of discussions between the National Council and the Council of States. One of the key points of debate was the fiscal impact on tourist cantons, where secondary residences generate substantial revenue. To offset potential losses, Parliament proposed the introduction of a cantonal tax on these properties, giving each canton the freedom to decide whether to implement it.
However, implementing this reform requires an amendment to the Federal Constitution, particularly due to the introduction of this cantonal tax. As a result, a popular vote will be necessary. Thus, even if no referendum is launched against the abolition of imputed rental value, the project must still be approved by both the people and the cantons before it can take effect.
The next steps include organizing the popular vote, which could take place as early as autumn 2025. If the reform is approved, a transition period of about two years is planned before its implementation, meaning it could come into force around 2027. In the meantime, property owners do not need to take any specific action, but they are advised to stay informed about the developments to better anticipate future tax changes.
Our article from February 2023: https://www.apcav.ch/en/quest-ce-que-la-valeur-locative-et-sera-t-elle-amenee-a-disparaitre/