Imputed Rental Value Abolished 2029: What Changes for You
From 2029, the imputed rental value disappears, and with it most of the mortgage interest deduction. What this means for your taxes, amortisation and renovations.
You fill out your tax return and enter the imputed rental value of your home as fictional income, same as every year. Annoying, but routine. Except that's not going to stay true much longer. From 2029, the imputed rental value disappears completely, and with it goes a chunk of the deductions you've come to take for granted.
Plenty of homeowners are already celebrating "lower taxes". The reality is more complicated: the system change brings real relief, but also new costs, especially around the mortgage interest deduction and maintenance costs. We'll show you exactly what changes from 2029, what the transition period until the end of 2028 means for you, and what you should already be paying attention to.
What the imputed rental value used to be
The imputed rental value (Eigenmietwert) is fictional rental income that owners of self-occupied residential property have had to declare every year, as if they were renting the property to themselves. In exchange, you could deduct your mortgage interest and value-preserving maintenance costs from your taxes.
For many homeowners, this roughly balanced out over the years. With the low interest rates of recent years, most people actually ended up with a net tax advantage, because the deductible costs usually exceeded the imputed rental value. That balance is exactly what's being dismantled now.
The old system was criticised above all by retirees with a paid-off mortgage: they had almost no mortgage interest left to deduct, yet still had to declare the full imputed rental value, even though their actual income often drops after retirement. This is exactly the group that benefits most from the system change starting in 2029.
The vote and the timeline to 2029
On 28 September 2025, Swiss voters approved the abolition of the imputed rental value with 57.7 percent in favour. At its session on 1 April 2026, the Federal Council announced that the system change takes effect on 1 January 2029.
Until then, a transition period applies. The old system, imputed rental value, mortgage interest deduction and maintenance cost deduction, remains unchanged until the end of 2028, applying for the last time to your 2028 tax return, which you file in spring 2029. So nothing changes yet in your 2026 or 2027 tax return. Still, the time until 2029 is worth using to prepare your personal situation, more on that below.
The three big changes from 2029
The system change isn't a single measure, it's a package of three connected changes.
The imputed rental value disappears entirely. For both self-occupied primary and secondary residences, you no longer have to declare fictional income. This is the actual relief many people have been waiting years for, especially in municipalities with high official rental values.
The maintenance cost deduction disappears, at both federal and cantonal level. Repairs, renovations and value-preserving investments in your self-occupied property will no longer be tax-deductible from 2029. This hits hardest anyone who tends to postpone major renovations rather than bring them forward.
The mortgage interest deduction largely disappears, with a temporary exception for first-time buyers. If you're buying residential property for the first time, you can still deduct part of your mortgage interest for up to ten years after the purchase: a maximum of CHF 10,000 for married couples and CHF 5,000 for single people, with the deduction shrinking by 10 percent each year. After ten years, or if you sell the property, this deduction is used up too.
This combination matters: if you carry a large mortgage with correspondingly high interest costs, you may well lose more in deductions than you gain from the disappearing imputed rental value. If you have a small mortgage, or none at all, the new system leaves you better off in practically every case.
Worked example: what the change actually means
Take a married couple with a single-family home worth CHF 900,000, a remaining mortgage of CHF 500,000 at 1.5 percent interest, and an assumed imputed rental value of CHF 21,600 a year. The exact calculation differs by canton, this example is purely illustrative.
| Item | Today (until 2028) | From 2029 |
|---|---|---|
| Imputed rental value as income | + CHF 21,600 | CHF 0 |
| Mortgage interest deduction | – CHF 7,500 | CHF 0 (no first-time buyer status) |
| Flat-rate maintenance deduction (20% of imputed value) | – CHF 4,320 | CHF 0 |
| Taxable balance from the property | + CHF 9,780 | CHF 0 |
At a marginal tax rate of 25 percent (federal, cantonal and municipal combined), the couple currently pays around CHF 2,445 in tax on this balance each year. From 2029, this item disappears entirely, because both the income and the two deductions fall away. For this couple, the reform means noticeable relief.
The picture looks different with a bigger mortgage and correspondingly higher interest costs. With a CHF 850,000 mortgage at the same rate, the CHF 21,600 imputed rental value would already be offset by a CHF 12,750 interest deduction, plus the CHF 4,320 flat-rate maintenance deduction. The taxable balance would drop to around CHF 4,530, well below the first couple's figure. At today's historically low mortgage rates, the old system's tax advantage is fairly small overall, in times of higher rates the difference used to be much larger. Either way, this remaining advantage disappears completely after 2029, unless the buyer still qualifies as a first-time buyer.
The example illustrates the basic rule: if you have a small mortgage or none at all, you clearly gain from the system change. If you carry a large mortgage, you're already paying some tax on the balance today, but from 2029 you lose the interest deduction entirely, which has at least been cushioning that tax burden until now. Your actual numbers depend on your canton, your mortgage size and your personal tax rate, this example is illustrative only and not tax advice.
Overview: what changes
| Item | Until end of 2028 | From 2029 |
|---|---|---|
| Imputed rental value (primary and secondary residence) | Taxable income | Disappears entirely |
| Mortgage interest | Fully deductible | Only for first-time buyers, time-limited |
| Maintenance costs | Deductible (flat-rate or actual) | Disappears |
| Secondary residence in tourist cantons | Imputed rental value as usual | Imputed rental value disappears, possible new property tax |
What happens to holiday homes and secondary residences
For self-occupied secondary residences too, say a chalet in Valais or an apartment in the Engadine, the imputed rental value disappears. At the same time, cantons with large numbers of secondary residences stand to lose noticeable tax revenue. The reform therefore creates a new constitutional basis: tourist cantons such as Graubünden, Valais or Ticino will be allowed to levy an independent property tax on predominantly self-occupied secondary residences.
This tax is based on the value of the property, regardless of your income or your broader financial capacity. How high it will actually be, and which cantons will introduce it at all, remains open for now. Implementation is up to the cantons and is likely to become clearer over the next two to three years. If you own a secondary residence in a tourist canton, it's worth keeping an eye on the cantonal legislation once the first drafts appear.
What this means for your amortisation and buying decision
Bring forward bigger renovations. If you're already planning an energy-efficient renovation, a new heating system, or a bathroom or kitchen remodel, the maintenance cost deduction is still fully usable until the end of 2028. After that, it's gone. If you're planning to renovate in the next few years anyway, good timing saves you real money.
Rethink your amortisation strategy. If you're paying down your mortgage indirectly through pillar 3a, that approach loses part of its previous tax advantage, because the mortgage interest deduction disappears for most people from 2029. Whether direct or indirect amortisation still makes sense for you is something we work through in detail in our amortisation guide.
Factor in first-time buyer status if you're buying now. If you're about to make your first property purchase, that secures you the time-limited mortgage interest deduction for up to ten years. That's one more reason not to base your buying decision on the current imputed rental value alone. Our mortgage calculator and our buy vs. rent calculator let you plug in your own numbers under both scenarios.
Don't rush. The reform only takes effect in 2029, with a clear transition period. Nothing changes in the tax returns you'll file over the next few years. Rushing into extra mortgage repayment just because of the reform rarely pays off.
Practical tip: book tradespeople early
If thousands of homeowners all get the same idea, finishing renovations before the end of 2028, solar, heating and plumbing companies are going to get booked up fast, and prices are likely to follow. If you're already planning a major renovation in the next few years, getting an early quote secures you two things at once: a slot before the rush, and the certainty of still claiming the maintenance cost deduction. A non-binding quote from two or three tradespeople costs you nothing but a bit of time, and gives you a realistic basis for planning, whether you end up deciding on 2027 or 2028.
Frequently asked questions
Does anything change in my next tax return already?
No. The old system, imputed rental value, mortgage interest deduction and maintenance cost deduction, remains unchanged until the 2028 tax return, which you file in spring 2029. Only after that does the new law apply.
Does the reform also affect rented-out properties?
No, it only concerns self-occupied residential property. For rented or leased properties, rental income as taxable income and the corresponding deductions, including mortgage interest, generally remain in place.
Do I need to cancel or restructure my mortgage now?
No, rushing rarely pays off. It makes more sense to raise the reform actively at your next scheduled mortgage renewal and review your amortisation strategy calmly.
What happens if I sell my property before 2029?
Until the sale, the old system with imputed rental value and the corresponding deductions still applies to you. For the new buyer, the new law applies automatically from 2029, regardless of when they bought.
Conclusion: plan the transition period, don't panic
The disappearance of the imputed rental value in 2029 isn't simply a tax break, it's a system change with winners and losers. If you have a small or fully amortised mortgage, you stand to gain noticeably. If you're carrying significant debt or have major renovations ahead of you, use the years until the end of 2028 actively rather than letting them slip by.
Run your own numbers with our mortgage calculator, and take a look at our amortisation guide if you're currently amortising indirectly. The finer details for your canton will become clearer over the next few years, your personal preparation can start today.