Owner-occupied rental value not until 2029

The Federal Council decided on April 1, 2026 that the imputed rental value will not be abolished until 2029. What is considered a compromise politically sounds like a stalling tactic to many of those affected. But the direction has long been clear.

In the fall of 2025, the Swiss population voted clearly in favor of abolishing the imputed rental value. The fictitious rental income that homeowners have had to declare as taxable income for decades, even though not a single franc flows in, has thus become politically obsolete. However, it took the Federal Council until the end of March 2026 to set a date for its entry into force and it ended up in 2029.

Mountain cantons put the brakes on
After the vote, Federal Councillor and Finance Minister Karin Keller-Sutter still mentioned 2028 as the earliest possible date. The mountain cantons, including Valais, pushed for 2030, as they need time to introduce a new tax on second homes to compensate for their tax losses. The year 2029 is the result of this trial of strength.

70 million franc hole
The canton of Valais alone is expecting tax losses of over 70 million francs as a result of the reform. The new property tax for second homes is intended to close this gap. But its implementation is complex. Cadastral values are outdated and the definition of second homes for private use is unclear. The question of whether the municipalities or the canton will levy the new tax is still open.

Homeowners are outraged
The Valais homeowners’ association campaigned strongly for the abolition of the tax during the referendum campaign. Association director Reinhard Meichtry commented on the Federal Council’s decision, saying that he initially believed it was an April Fool’s joke and that the decision was “absolutely unacceptable”. Meichtry announced that he would apply to the Federal Council for a rejection and also doubted the seriousness of the communicated tax loss figures.

What applies now
The current system will remain unchanged until the end of 2028. Owners continue to declare the imputed rental value and can deduct mortgage interest and maintenance costs. Anyone planning major renovations or mortgage adjustments should make strategic use of this transition phase, as most of these deductions will no longer apply when the system changes in 2029.