Imputed rental value in Switzerland: calculation and abolition in 2029

What is imputed rental value, and how is it calculated?

Imputed rental value, called valeur locative in French and Eigenmietwert in German, is taxable income attributed to personal use of a home. The owner receives no corresponding cash payment, but the amount is taken into account for income tax under the applicable rules.

It differs from the property’s fiscal value, used in particular for wealth tax, and its market value, an estimate of the sale price. It should not be calculated as an arbitrary percentage of the purchase price.

There is no single formula for all of Switzerland

Assessment methods vary by canton and property characteristics. They may take account of floor area, facilities, location, age, condition and adjustment rules. A house and an apartment with the same market price can therefore have different imputed rental values.

A commercial rental estimate does not automatically replace the amount determined under the tax method. Saying that imputed rental value is “70% of the property’s value” confuses a capital value with annual rental income. Any percentage must clearly identify its base.

Personal use and letting are different

For a rented property, actual rental income must be considered. Where an owner reserves a home for personal use, imputed rental value can apply even without permanent occupation. Describe mixed use, rental periods and changes of use precisely.

A second home is not automatically excluded merely because it is occupied for only a few weeks each year.

How does imputed rental value work in Geneva?

Geneva’s tax authority explains that the assessment depends on living area, facilities, location, age and related characteristics. The amount is indexed annually and communicated to the taxpayer through the cantonal procedure.

The questionnaire for apartment and house owners is required, in particular, following a recent acquisition or work that alters the property, such as an extension. It records the characteristics needed for the assessment.

The 2025 imputed rental value questionnaire, published in January 2026, concerns the period shown on that document. Its publication date does not make it a “2026 form”.

What should you check?

Verify floor areas, ancillary spaces, facilities and alterations. An incorrect property characteristic can affect the assessment. Retain useful plans, deeds and supporting renovation documents.

Do not automatically repeat the figure from an old return if you have received a new assessment or the property has changed.

Property in another canton or abroad

For a home in another canton, obtain the imputed rental value from the authority where the property is located. Its treatment in the return for your canton of residence then follows intercantonal allocation rules.

Foreign property also requires specific information and treatment in the Swiss tax calculation. Distinguish taxation where the property is located from the obligation to disclose it in Switzerland.

How does it affect the tax bill?

Imputed rental value is an income item, not the tax payable. The effect depends on allowable deductions and the overall tax calculation.

Under the current regime, qualifying debt interest and property expenses can reduce taxable income, subject to their conditions. Distinguish maintenance from improvements that increase value, and consider both federal and cantonal rules.

A simplified example

Assume annual imputed rental value of CHF 24,000, deductible interest of CHF 12,000 and allowable maintenance of CHF 6,000.

Illustrative net income effect: 24,000 − 12,000 − 6,000 = CHF 6,000.

At an assumed constant marginal tax rate of 30%, this additional net income would produce CHF 1,800 of tax in the simplified simulation. This is neither a Geneva tax scale nor the homeowner’s total tax bill.

The actual result depends on other income, family circumstances, deduction limits and any allocation between jurisdictions.

A deduction is not a refund

A deductible expense reduces a taxable base; it is not reimbursed franc for franc. Spending CHF 10,000 solely to obtain a deduction does not save CHF 10,000 in tax.

Repaying mortgage principal is different from paying interest. It reduces both debt and cash but is not deductible interest expense. Keep taxation, cash flow and property investment returns separate when assessing a project.

What changes on 1 January 2029?

The reform removes imputed rental value for the owner-occupied main and second homes concerned, while changing several deductions:

• Maintenance: no longer deductible for owner-occupied homes at federal, cantonal and municipal levels. Deductions remain available for rented or leased properties under the applicable framework.
• Debt interest: generally deductible in proportion to the value of rented or leased real estate relative to total assets. A separate deduction, limited in amount and duration, is available for a first home acquired in Switzerland.
• Energy-saving investment: no longer deductible for direct federal tax. Cantons may retain certain deductions for a limited period.
• Second homes: cantons may introduce a special property tax on homes used mainly for personal purposes.

Check cantonal implementation rather than assuming every canton will introduce the same tax or retain the same deductions.

The effect differs between homeowners

An owner with little debt and one paying substantial interest start from different positions. Planned work, the composition of assets and the use of each property also matter.

Compare two complete calculations: current law and the regime from 2029. Removing only imputed rental value from today’s return while leaving every other line unchanged would give an incorrect result.

Prepare your return and property decisions

Keep the latest imputed rental value notice, interest certificates and invoices for work. File them by property and year, and record acquisition, sale and usage dates.

Your tax-return supporting documents should substantiate the amounts, not merely supply figures for the tax software.

Buying or renovating

Build a budget using the rules for each period. A project that begins before 2029 and continues afterwards may require an assessment of timing and transitional provisions.

Do not choose renovation dates solely for a theoretical tax saving. Consider whether the work is needed, how it will be financed, required permits and the deductions actually available.

Disputing an amount

First check the underlying data and tax period. Request clarification from the authority, then follow the remedies and deadlines stated in the relevant decision. An informal question does not necessarily replace a formal objection lodged on time.

For a rental-property project, use our guide to property investment in Switzerland to compare financing, costs and risks. If the property is outside Switzerland, the cross-border property and tax checks require separate attention.

Frequently asked questions

Sources and references

English edition reviewed on 10 October 2026. Numerical examples are illustrative. The linked primary sources are in French.

• Federal Department of Finance: abolition effective on 1 January 2029, announcement of 1 April 2026.
• Geneva: tax for property owners.
• Geneva: property income and imputed rental value.
• Geneva: 2025 imputed rental value questionnaire, published in January 2026.