On 28 September 2025, the Swiss population voted — with 57.7% of the vote — to abolish the taxation of the imputed rental value (or Eigenmietwert), marking the end of a tax on the “fictional income” of homeowners living in their own property. This system, in place for decades, considered that a homeowner derives income from their home as if they were renting it out — even if they do not.

The abolition is part of a broader reform of the taxation of owner-occupied housing — which also includes the possibility for cantons (through a constitutional change) to introduce a cantonal property tax on secondary residences to compensate for lost revenue.

But this vote does not produce immediate effects: implementation of the reform is scheduled for no earlier than 1 January 2028, and the cantons will retain some flexibility to define certain implementation details.


What Is Changing for Homeowners — and What We Know So Far

✅ Relief for Certain Homeowners
• The imputed rental value is no longer taxed for primary and secondary residences occupied by their owners.
• For owners who have already repaid (or significantly amortised) their mortgage, this may represent substantial tax savings.
• For new homebuyers, a transitional regime is planned: mortgage interest deductions remain possible, but in a limited and gradually decreasing way over 10 years.

⚠️ Counterparts and Uncertainties
• The abolition of the imputed rental value goes hand in hand — at the federal level — with the elimination of tax deductions for maintenance, renovations, energy-efficiency improvements, and mortgage interest (except limited transitional exceptions for first-time buyers).
• The cantons may decide independently on exceptions — notably to encourage energy-efficient renovations — but the details remain to be defined.
• For secondary residences, the introduction of a cantonal property tax is possible, and even likely in several cantons. Without this new tax, public finances could face an estimated shortfall of around CHF 1.8 billion per year.

🏔️ Specific Features and Issues for the Canton of Valais
• The 2025 vote revealed a clear divide between German-speaking Switzerland (majority “yes”) and French-speaking + mountain cantons. Valais — mostly French-speaking and mountainous — opposed the reform.
• Despite this local rejection, the reform applies at the federal level: Valais cannot block it. Even though the canton often favours moderate taxation, it will need to adapt.
• For homeowners in Valais with a primary residence — often families or retirees in fully amortised homes — the abolition of the imputed rental value may reduce their tax burden, offering a net gain. Conversely, for those with high maintenance or renovation costs, or large mortgages, the loss of deductions may offset the advantage.
• For secondary residences (very numerous in Valais due to tourism and mountain resorts), the cantons now have the option — though not the obligation — to introduce a compensatory property tax. The level of this tax, its base, and its rates will be key in measuring the local impact — but these details are not yet determined.
• The construction and renovation sector in Valais could be affected: some works (energy renovation, maintenance renovations) may become less fiscally attractive — potentially slowing certain projects unless the canton introduces specific deductions.

🇨🇭 Major National Consequences — What Switzerland May See in Real Estate and Taxation
• The abolition of the imputed rental value ends a system many viewed as “unfair” — a tax on fictional income that particularly penalised owners “with no rent but a valuable home.”
• The reform may encourage faster mortgage repayment and reduce real-estate debt levels — which could stabilise the market, especially in periods of rising interest rates.
• But the elimination of deductions may reduce incentives for maintenance and renovation — particularly energy-efficient renovations, crucial in the context of ecological transition.
• For public finances, the revenue loss will need to be compensated — either through new taxes (secondary residences) or other measures. This may weigh on cantonal and municipal budgets, with potential effects on public services, infrastructure, etc.
• In the long term, the real-estate market may see a shift: less incentive to borrow heavily, possibly more stability, but also less maintenance and renovation — potentially affecting the quality of the housing stock, especially in rural or mountain areas.


🤔 For Residents of Valais — Some Thoughts and Possible Scenarios

Homeowners Without Debt (Retirees, Fully Paid-Off Homes)
◦ Ideally positioned: no imputed rental value, few deductions lost, resulting in tax relief.
◦ Recommended: repay the mortgage as soon as possible to maximise the benefit.

Recent or Highly Indebted Homeowners
◦ Fewer short-term advantages — especially if maintenance work or interest payments remain significant.
◦ Benefits may appear in the medium term if the mortgage is repaid or amortised.

Owners of Secondary Residences / Tourists / Holders of Mountain Properties
◦ Wait to see whether the Canton of Valais introduces a property tax on these residences — and at what rate.
◦ Risk of a new, potentially less favourable tax burden if the tax is high.

Renovation and Construction Sector
◦ Uncertain outlook: the absence of deductions may slow down projects.
◦ Possible incentive to carry out renovations before the reform comes into effect (tax anticipation).

Public Authorities (Cantons, Municipalities)
◦ Loss of revenue that will need to be compensated — either through taxes, spending cuts, or other fiscal adjustments.
◦ Potential risks for public services or municipal investment if compensation is poorly designed.

In Conclusion: A Significant but Two-Edged Reform — Especially in Valais
The abolition of the imputed rental value in Switzerland marks a historic shift in real-estate taxation. For many homeowners — especially those with fully amortised housing — it is a relief. But for others, especially in cantons like Valais, the real impact remains uncertain: it will largely depend on local decisions (new tax on secondary residences, deduction policy, renovation incentives).

Rather than a universal “tax gift,” this reform acts as a restructuring of the framework: advantages and disadvantages will vary depending on individual situations. For residents of Valais, it will be crucial to follow cantonal decisions in the coming months — and, if necessary, adjust their real-estate and financial strategy accordingly.