What Could Change in Taxation for Swiss Property Owners?
Svájcban a saját lakás fiktív bérleti értékének, az Eigenmietwertnek az eltörlése várható, de a rendszer tényleges bevezetési időpontja és részletszabályai még nem véglegesek. Ezzel együtt szűkülhet a jelzálogkamatok és a karbantartási költségek levonhatósága, miközben az első lakásvásárlók átmeneti kedvezményeiről és a másodlagos ingatlanok kantonális adóztatásáról külön szabályok dönthetnek.
What is Eigenmietwert, and when will taxation of the imputed rent end?
Eigenmietwert (the imputed rental value of owner-occupied housing) is a distinctive Swiss rule. In essence, anyone who lives in their own property must also pay tax on the uncollected, “theoretical” rent as income, as if they were renting out the property.
For decades, this system shaped the tax burden of Swiss homeowners. In practice, it meant that a private home was not only an asset, but also a continuing taxable “source of income” on paper.
The national referendum held on 28 September 2025 specifically aimed to end this taxation of imputed rent (Systemwechsel bei der Wohneigentumsbesteuerung, meaning a system change in the taxation of owner-occupied property).
However, the system change will not take effect overnight. Its implementation depends on developing the implementing provisions and completing the necessary cantonal steps, so the actual entry into force is expected in the future and in several stages.
Which deductions will end, and who will remain entitled to deduct interest?
The abolition of Eigenmietwert logically means that a substantial proportion of the associated deductions will also disappear. If there is no longer any imputed income, deducting the costs charged against it is no longer justified.
This may affect several groups:
Mortgage interest:The deductibility of interest paid on loans for an owner-occupied home will be reduced, since the imputed income against which it could previously be offset will no longer exist.
Maintenance and renovation costs:The deductibility of maintenance expenses will also change.
First-time homebuyers (Ersterwerberabzug):The debate focuses on whether first-time property buyers should retain a temporary, limited possibility of deducting interest, so that the system change does not disproportionately affect those buying now.
The exact thresholds and conditions will be determined in the implementing regulations. Anyone currently planning to take out a loan or undertake major renovations should therefore make the decision based on the rules currently in force.
How may the cantons tax second homes?
One of the most sensitive aspects of the system change concerns holiday homes and second homes. The abolition of Eigenmietwert could result in significant revenue shortfalls in tourism-oriented cantons, which is why the system allows the cantons to tax second homes separately.
This cantonal property tax on second homes (Liegenschaftssteuer auf Zweitliegenschaften, also known as an object tax / Objektsteuer) is intended to compensate holiday regions for the loss of imputed rent.
For this reason, the canton of Bern’s government is planning to amend the cantonal constitution so that second homes can be taxed. This step is not automatic: the people of Bern must decide on it in a separate referendum.
This clearly shows that the system change will not be uniform throughout Switzerland. The national direction is set, but introducing taxation of second homes depends on political decisions and votes in each canton.
What other property taxes are changing from canton to canton?
The abolition of Eigenmietwert could also put pressure on other property taxes. If a canton or municipality loses a source of revenue, it typically seeks compensation through other forms of taxation.
For Hungarian readers, it is important to be familiar with these parallel taxes:
Real estate transfer tax (Handänderungssteuer): payable when ownership of real estate is transferred; the rate varies from canton to canton.
Real estate capital gains tax / profit tax (Grundstückgewinnsteuer): levied on the capital gain realised when the property is sold.
Cantonal real estate tax (Liegenschaftssteuer): a tax imposed on the basis of the property’s value, which not every canton applies.
Several cantons — including Graubünden — have also put the issue on their agenda, as they must adapt their own rules to the new system. The practical picture will therefore take shape canton by canton over the coming years.
What could this mean for Hungarians living in Switzerland?
Under Swiss tax law, as an EU citizen, a Hungarian national is subject to the same rules on the taxation of residential property ownership as any other resident, based on the Agreement on the Free Movement of Persons (FZA, 1999). The change in the system therefore affects Hungarians who buy or own property in Switzerland in the same way.
Particular attention should be paid to the property owned in Hungary. Anyone who is tax resident in Switzerland may also have their foreign property taken into account when Swiss taxes are assessed, typically when determining the applicable tax rate. The Swiss–Hungarian double taxation agreement (1981) sets out which state may levy tax, so the treatment of Hungarian property can be complex.
The topic is also relevant for those planning to return to Hungary; taxes relating to the purchase, ownership and subsequent sale of property — particularly Grundstückgewinnsteuer — can amount to a significant sum over the long term. In many cantons, the length of ownership affects the amount of capital gains tax.
Anyone planning to buy property within the Hungarian community, for example in the Zürich, Bern, Basel or Genève area, should take particular care to familiarise themselves with the rules of the relevant canton, as the tax burden and future changes vary from canton to canton.
What should those affected pay attention to?
The most important point is that the direction of the system change has been decided, but the details have not yet been finalised. This creates planning uncertainty for the coming years.
A few practical considerations:
Timing of financing and renovation decisions: the changes to interest and maintenance deductions may affect when it is worthwhile to renovate or repay the mortgage.
Planning a secondary property: before purchasing a holiday home, it is advisable to clarify whether the canton concerned imposes a property tax.
Impact of changing cantons: when moving, property taxes in the new canton may differ significantly.
Keeping documentation: renovation invoices and purchase documents may also be important for future capital gains tax purposes.
What uncertainties remain surrounding the introduction of the system change?
The biggest open question is the exact date on which it will enter into force. The implementing rules for the system change and the necessary adjustments to cantonal legislation take time, so the actual introduction may be delayed until the coming years.
Further open points:
The precise form and duration of the interest deduction for first-time homebuyers.
How secondary properties will be taxed in each canton (in Bern, for example, the decision will be made by referendum).
Any possible increases in other property taxes to compensate for lost revenue.
As the rules vary between cantons and over time, the current cantonal position must be checked before carrying out any specific calculation. In complex financial circumstances—for example, where there are several properties, property in Hungary, or plans to return to Hungary—obtaining expert advice is recommended.
Sources
nzz.ch
admin.ch (2025-09-28 vote)
gr.ch (Canton of Graubünden)
be.ch (Canton of Bern, taxinfo)
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In Brief
Following the nationwide vote on 28 September 2025, Switzerland may abolish the Eigenmietwert, meaning taxation of the imputed rental value of an owner-occupied home. The details, entry into force and interest deduction for first-time homebuyers have not yet been finalised; the cantons may decide separately on taxation of secondary properties.
Key Takeaways
- Check the current cantonal rules before deciding to take out a mortgage or undertake major renovations.
- When buying your first home, follow the implementing rules on interest deductions, as the precise conditions have not yet been finalised.
- Before buying a holiday home or other secondary property, clarify whether the relevant canton will introduce an object tax.
- Before moving to another canton, compare the new canton’s property taxes and related rules.
- Keep renovation invoices and purchase documents for the later assessment of capital gains tax.
- If you own property in Hungary, several properties in Switzerland or are planning to return to Hungary, seek specialist advice.
Frequently Asked Questions
What is the Eigenmietwert?
The Eigenmietwert is the imputed rental value of using an owner-occupied home. In Switzerland, this uncollected, theoretical rent is taxed as income, as if the owner rented out the property.
When will taxation of the Eigenmietwert end?
The nationwide vote on 28 September 2025 aimed to end taxation of imputed rent. However, the actual entry into force has not yet been finalised, as implementing rules and adjustments to cantonal legislation are required.
Which deductions could change if the Eigenmietwert is abolished?
The deductibility of mortgage interest and maintenance and renovation costs for an owner-occupied home may be restricted. This is because these deductions were previously offset against the imputed income.
Will first-time homebuyers receive a tax benefit?
A temporary, limited interest deduction for first-time property buyers has been proposed. The precise thresholds, conditions and duration will be set out in the implementing rules.
How could secondary properties be taxed?
The cantons may be given the option to impose a separate property tax, known as an object tax, on holiday homes and other secondary properties. Its introduction may vary from canton to canton; in Bern, for example, a separate referendum could decide the matter.
Will the change affect Hungarians living in Switzerland in the same way?
Yes. Hungarians who buy or own property in Switzerland are subject to the same homeownership tax rules as other residents. Property in Hungary may also play a role in Swiss tax assessment, typically when determining the applicable tax rate.
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