The Swiss Federal Council has approved the launch of a housing tax reform effective January 1, 2029—from that point on, homeowners who live in their own homes will no longer pay tax on the so-called imputed rental value (Eigenmietwert).
This is one of the most unique tax rules in Europe: until now, living in one’s own house or apartment in Switzerland was considered imputed income, on which income tax was levied. As part of the reform, this system will be abolished for both primary and secondary residences, while parliament simultaneously provided a constitutional option for cantons to introduce a special tax on second homes.
The reform became possible after Swiss voters supported changes to housing taxation in a referendum on September 28, 2025. According to Swissinfo, 57.7% of voters supported the reform. The Federal Council rejected requests from several Alpine cantons to postpone the launch of the new system until at least 2030, deciding to maintain the effective date of the changes as 2029.
For the housing market, this means not only the abolition of the imputed rental income tax but also a revision of related tax deductions. According to the official explanation, the current model was based on a balance between taxing imputed income and the ability to deduct mortgage interest and housing maintenance costs from the tax base. Following the reform, this mechanism will be significantly altered, and the cantons will have to adapt their own tax regimes over the coming years.
For foreign investors and real estate buyers, this news is important primarily as a signal of further adjustments to the rules governing home ownership in Switzerland. At the same time, the final impact of the reform on the tax burden will depend on the structure of real estate ownership, the presence of a mortgage, and how specific cantons exercise their right to impose a separate tax on second homes.
