Swiss Government Backs Abolishing Imputed Rental Value

(MENAFN- Swissinfo) The abolition of the imputed rental value for federal tax purposes is intended to reduce incentives for high private debt and simplify the tax system. On Friday Swiss Finance Minister Karin Keller-Sutter spoke on behalf of the government in favour of parliament's proposal. This content was published on August 15, 2025 - 13:14 2 minutes Keystone-SDA

• Deutsch de Bundesrat und Parlament werben für Abschaffung des Eigenmietwerts Original Read more: Bundesrat und Parlament werben für Abschaffung des Eigenmietwert

+Get the most important news from Switzerland in your inbox

Those in favour of changing the system criticise the current taxable imputed rental value as an unfair tax on income that does not exist. Nevertheless, numerous attempts to abolish the imputed rental value have failed in the past.

+ Will Switzerland finally do away with imputed rental-value tax on homeowners?

According to the government, the latest reform attempt is balanced. In contrast to previous approaches, which wanted to continue to allow a large number of tax deductions, the proposal now being put to the vote restricts the deductions for direct federal tax to a minimum, thereby also limiting the overall government revenue shortfall.

The consequences of the system change will depend on the interest rate level. In the current situation, the government anticipates a reduction in revenue for the federal government, cantons and municipalities of around CHF1.8 billion ($2.2 billion). From a mortgage interest rate level of around 3%, however, the estimates suggest that this would result in additional income for the public sector.

Translated from German by DeepL/ts

We select the most relevant news for an international audience and use automatic translation tools to translate them into English. A journalist then reviews the translation for clarity and accuracy before publication.

Providing you with automatically translated news gives us the time to write more in-depth articles. The news stories we select have been written and carefully fact-checked by an external editorial team from news agencies such as Bloomberg or Keystone.

If you have any questions about how we work, write to us at ...

Related Stories Popular Stories More How 'nearshoring' is driving Swiss companies to move to Mexico Read more: How 'nearshoring' is driving Swiss companies to move to Mexic

MENAFN15082025000210011054ID1109934327