The imputed rental value will be abolished on 1 January 2029. In return, owners will no longer be able to deduct the maintenance and renovation costs of their home. The result: the way — and above all the timing — of a renovation becomes a tax decision. Here is what changes in practice, and how to plan ahead.
What the people voted for
On 28 September 2025, Switzerland accepted, by 57.7%, the reform of the taxation of home ownership. It abolishes the imputed rental value — that notional income which owner-occupiers had to declare — for both main and second homes.
The Federal Council confirmed the timetable on 1 April 2026: after a transitional period, the reform enters into force on 1 January 2029. Until then, nothing changes: the imputed rental value remains taxable and the current deductions remain valid.
What owners lose
The abolition of the imputed rental value comes with a trade-off: the end of several deductions.
| Deduction | Today | From 2029 |
|---|---|---|
| Maintenance and renovation costs (owner-occupied dwelling) | Deductible | Abolished (federal, cantonal, communal) |
| Energy-saving measures | Deductible | Abolished at federal level; cantons may keep it until 2050 |
| Mortgage interest | Largely deductible | Heavily limited |
| First purchase (first-time buyer) | — | Temporary deduction of interest (10 years, decreasing) |
In other words: after 2029, maintaining or renovating your own home will in principle no longer give rise to a tax deduction — except for energy measures in the cantons that choose to keep the incentive.
Renovate before or after 2029?
That is the real question. As long as the old regime applies (until the end of 2028), major maintenance works — roof, façade, windows, heating — remain deductible from taxable income. After the switch, this advantage disappears for the owner-occupied home.
This window is prompting some owners to bring forward planned works. But bringing a renovation forward only makes sense if the project is realistic given the plot: an added storey or an extension presupposes available building rights, a compatible building envelope and the absence of any restriction in the RDPPF. Renovating the existing building to improve energy efficiency, by contrast, depends above all on the condition of the building.
Second homes: a possible cantonal tax
The reform leaves cantons the option of introducing a special property tax on second homes in personal use, to offset part of the lost revenue. Owners of chalets and holiday flats must therefore follow the implementation canton by canton: the abolition of the imputed rental value does not necessarily mean a zero tax burden.
What to do now
Map out the planned works
List the renovations envisaged before 2030 and distinguish maintenance (deductible until 2028) from energy measures (potentially deductible for longer depending on the canton).
Check the plot's potential
An extension or an added storey depends on the zone, the utilisation index and the building envelope — not on the tax calendar. First confirm what can be built.
Follow the cantonal implementation
Whether the energy deduction is kept, or a tax on second homes is introduced: these choices are made at cantonal level. Consult the official source before any decision.
The reform reshuffles the cards of property maintenance, but it says nothing about the building potential of your property. To weigh up renovating, extending or selling, the first piece of information remains the same: what your plot really allows, backed by official sources.