For decades, Swiss homeowners have been taxed on the so-called imputed rental value (Eigenmietwert) – a theoretical income that owner-occupiers are deemed to earn by living in their own property. Even though no rent is actually received, this notional amount has had to be declared as taxable income, both for primary residences and for second homes.
The system was originally intended to ensure equal treatment between homeowners and tenants. In return, homeowners were allowed to deduct mortgage interest, maintenance costs and, in many cases, energy-efficiency renovations from their taxable income.

On 28 September 2025, Swiss voters approved the abolition of the imputed rental value at federal level. The decision marks a significant shift in property taxation – but it does not mean that anything changes overnight.

A long transition period
According to the Bern cantonal tax administration, the new system is not expected to enter into force before 2028 at the earliest. “Cantons are generally granted around two years to implement such changes,” explains Dominik Rothenbühler of the Canton of Bern’s tax office. Before homeowners can file tax returns without an imputed rental value, the canton must revise its tax legislation. Should a new object-based property tax be introduced, a constitutional amendment would also be required. For property owners, this means several more years under the current system – and considerable uncertainty about what comes next.

What changes for homeowners
One consequence of the system change is already clear: under the new framework, homeowners will no longer be able to deduct general maintenance costs from their taxes. What remains open is whether deductions for ecological or energy-efficiency improvements will continue.

Cantons are permitted to grant tax incentives for energy-related renovations until 2050. Political initiatives are already under discussion in several cantons, calling for such deductions to remain possible even after the imputed rental value is abolished. Whether and how this will apply in the Canton of Bern has yet to be decided.

The financial impact on the Canton and Municipalities
Ahead of the 2025 vote, the Bern cantonal government calculated potential tax losses under two scenarios. If energy-efficiency deductions remain in place, the canton could lose around CHF 108 million in tax revenue, with municipalities losing a further CHF 55 million. If those deductions are abolished, the estimated losses are significantly lower – around CHF 58 million for the canton and CHF 28 million for municipalities.

For local authorities in the Saanenland, however, precise forecasts remain difficult. The municipalities of Saanen, Lauenen and Gsteig all stress that the impact will vary greatly from case to case.

“It is difficult for us to calculate the financial consequences, as the new system affects taxpayers individually,” says Hans Ulrich Perreten, finance administrator of Lauenen. His counterpart in Saanen, Kurt Gyger, adds that maintenance costs currently deducted from taxes fluctuate widely, further complicating any meaningful calculation.

Second homes in focus
In regions with a high proportion of second homes, another question looms large: how might municipalities compensate for lost tax revenue?

Karl Graa, finance administrator of Gsteig, emphasises that much remains undecided. “Before any special tax could be introduced, we need clarity on the framework conditions and on what scope of action municipalities would actually have,” he says.

The cantonal government has, nevertheless, suggested that the financial impact may be manageable. According to a 2025 assessment, municipalities with a high share of second homes would face a maximum loss of around three percent of their tax revenue, with most municipalities experiencing significantly lower shortfalls.

Beyond financial considerations, the reform also brings organisational challenges. A possible second-home register would require continuous updating and additional administrative resources at municipal level.

The call for clarity
The Saanenland Business Association has called for clear rules and legal certainty as early as possible. “This applies to the level and collection of any object-based tax, the timing of the abolition, and the definition of what constitutes a second home or a predominantly owner-occupied property,” says Ana de Moura of T&R Oberland, a member of the association.

Such clarity, she argues, is essential for property owners planning renovations and for municipalities preparing their budgets.

What happens next
For now, municipalities and homeowners alike are waiting for concrete guidance from the canton. Only once the legal framework is defined will it become clear how the abolition of the imputed rental value will affect individual property owners, and whether new forms of taxation will replace a system that has shaped Swiss homeownership for generations.

Based on AvS