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Key facts:
- Imputed rental value to be abolished – implementation expected from 2028
- Mortgage interest and maintenance costs still deductible in 2025, but limited in future.
- You can reduce your tax burden with strategic planning.
Owning a property in Switzerland not only brings stability, but also tax obligations. With forward-looking planning, you can make targeted use of deductions and reduce your tax burden in the long term. 2025 will also see a significant change: the decision has been made to change the system of residential property taxation.
Property and taxes: What will be important in 2025
Owning a property in Switzerland not only brings stability, but also tax obligations. With forward-looking planning, you can make targeted use of deductions and reduce your tax burden in the long term. 2025 will also see a significant change: the decision has been made to change the system of residential property taxation.
Imputed rental value – abolition decided, implementation to follow
On September 28, 2025, Swiss voters approved the abolition of the imputed rental value. This means that the obligation to pay tax on notional income from owner-occupied residential property will no longer apply in future.
However, it will not be implemented immediately: it is not expected to come into force until the 2028 tax period at the earliest. Until then, the current system with taxation of imputed rental value will continue to apply.
Effects on owners
- Debt-free owners benefit because the notional income is eliminated.
- Indebted owners lose the interest deduction in the medium term, which can increase the tax burden.
- Landlords remain unaffected by the system change for the time being; the previous rules continue to apply to them.
Interim conclusion: The abolition brings long-term relief, but requires individual planning, especially with regard to the mortgage strategy.
Deduction options 2025: What remains, what changes
Mortgage interest
Mortgage interest will continue to be deductible from taxable income in 2025. However, with the implementation of the new system, these deductions will be severely restricted – especially for owner-occupied property.
Maintenance and repair costs
Value-preserving expenses such as painting work or the repair of sanitary facilities can be deducted. Value-enhancing investments (e.g. additions, extensions) are not deductible. Receipts should be kept carefully.
Energy-efficient renovations
Investments in energy efficiency – such as heat pumps, solar systems or building insulation – will continue to receive tax incentives, particularly at cantonal level. Some cantons also allow the costs to be spread over several years.
Letting and property gains tax
Anyone who rents out their property must pay tax on rental income. At the same time, maintenance costs and mortgage interest are deductible. Special rules apply to rentals below market value or short-term rentals (e.g. via Airbnb).
Property gains tax is still payable on the sale of a property. It is levied at cantonal level and depends on the holding period and the amount of the gain. A longer period of ownership can significantly reduce the tax.
Strategic tax planning for owners
- Collect receipts: Keep all bills for maintenance, renovation and mortgage interest.
- Flat-rate deduction or actual: check annually which option is more favorable from a tax perspective.
- Plan renovations: Stagger major renovations over several years if necessary.
- Use advice: Coordinate tax and financial decisions with experts at an early stage.
- Observe market developments: Population growth and increasing energy requirements can also have an impact on tax optimization opportunities.
Conclusion
The tax change in Switzerland marks a new phase for property owners. The abolition of the imputed rental value reduces the tax burden in the long term, but also brings new restrictions on deductions. Those who plan early, keep clean receipts and make targeted energy investments can significantly optimize their tax burden in 2025 and beyond.
Data without guarantee. The information has been carefully researched, is based on official sources (FSO, FTA, NZZ, Grant Thornton, BDO, Raiffeisen, LUKB) and reflects the status as at November 2025.
FAQ – Frequently asked questions
When will the imputed rental value be abolished?
Yes. Swiss voters approved the abolition of the imputed rental value on September 28, 2025.
However, implementation will not take place immediately:
Entry into force from the 2028 tax period at the earliest
Transitional arrangements will be defined by the federal government and the cantons
Until then, the current system with taxation of imputed rental value and corresponding deductions will continue to apply.
Can I continue to deduct mortgage interest?
The deduction will remain in place until the new system is introduced. After that, it will be massively restricted or largely abolished for owner-occupied residential property.
For rented properties, mortgage interest remains deductible as it is income from asset management.
Are maintenance costs still deductible?
For the 2025 tax year, yes.
The new system provides for:
In the case of owner-occupied property, the maintenance deduction at federal level is largely eliminated.
The cantons can continue to make their own regulations (e.g. energy-related renovations).
For rented properties, value-preserving costs remain deductible as they are necessary to generate income.
Do tax breaks still apply for energy-efficient renovations?
In many cantons, energy-efficient renovations will continue to be tax-privileged in 2025. The deductions may vary depending on the location, but remain an important instrument for promoting energy-efficient investments. At federal level, however, restrictions are to be expected, as individual deductions are to be reduced as part of the system change. Owners should therefore check the cantonal regulations and carefully coordinate the timing of planned measures.
How high is the property gains tax on the sale?
The amount of property gains tax varies from canton to canton and depends on both the length of ownership and the profit made. In cantons with degressive models, the tax burden decreases as the holding period increases, meaning that long-term ownership usually results in a significantly lower tax. The allowable investments and the cantonal requirements for calculating the taxable profit are also decisive, which is why early planning before a sale is worthwhile.