Abolition imminent for imputed rental value

Those who live in their own apartment or house pay taxes on the imputed rental value as taxable income. This corresponds to the rent that the property would generate. The amount is set by the cantons, but it is influenced by the usable area and the location. However, the imputed rental value and the property maintenance deduction could soon be a thing of the past.

What is the imputed rental value?

‍With the imputed rental value, homeowners tax their hypothetical rent as additional taxable income. This hypothetical rent corresponds to the amount that would have to be spent annually for the self-used premises if an equivalent property were rented. The amount is set by the cantons, but it is influenced by the size of the apartment or house. The local rental price level also has an influence. However, in practice, the imputed rental value turns out to be lower than the rent that would actually have to be paid for the affected property. This increase in taxable income is offset by deductible interest on debt and maintenance costs.

‍Possibility of the imminent abolition of the imputed rental value exists

‍In the near future, however, this could change. The Economic Affairs Committee (WAK) of the Council of States and the National Council have approved a parliamentary initiative that proposes the abolition of the imputed rental value and property maintenance. However, a debt interest deduction for first-time buyers of owner-occupied properties is to be added. And deductions for debts such as mortgages should remain possible. The draft law is scheduled to go into consultation in the spring of next year.

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