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At present, the tax on the rental value (Eigenmietwert in German) applies to property owners and is calculated on the basis of the property’s rental value.
Renovations, tax benefits, deductions, interest… find out everything that’s changing, and whether now is the right time to renovate.
Contents
- What is ‘rental value’ in Switzerland, and why does its abolition change everything?
- What changes are in store for property owners and renovation projects in Switzerland?
- Conclusion: comparative table: before 2028 vs after 2028
- Is BeHome Interiors able to manage renovation projects in Switzerland?
Reading time: 5 mins
What is ‘rental value’ in Switzerland, and why does its abolition change everything?
The rental value is a notional income that owner-occupiers must declare, as if they were receiving rent. Introduced in the 1940s, the tax on rental value consists of taxing the income from unlet property as if it were let. This tax is levied by all Swiss cantons. In September 2021, the Council of States (Switzerland) agreed to abolish this tax.
- ‘Rental value’ is a notional income that owner-occupiers must declare, as if they were receiving rent — even if no one is paying rent.
- In return for this notional income, property owners can claim tax relief on certain expenses:
– mortgage interest,
– maintenance costs,
– many types of renovation or conversion work,
– energy-efficiency measures. - The amount of tax relief varies depending on actual expenditure, the mortgage, taxable income, the canton, etc. There is no single national cap. In short, the relief depends on the cost of the work, the interest paid and the individual’s personal circumstances. The more expensive a renovation or building work is, the higher the potential tax deduction — which made the investment attractive to a great many homeowners.
- On 28 September 2025, in a referendum, Switzerland approved the abolition of the rental value and this system of tax deductions. This announcement represents a major reform for property owners, and it raises many questions about whether it is better to renovate one’s property now or at a later date.
The reform is due to come into force ‘in 2028 at the earliest’, to allow the cantons time to amend their legislation.
What changes are in store for property owners and renovation projects in Switzerland?
What will be phased out from 2028 for owner-occupied properties (main or second homes)
- Rental value: this will no longer be taxable.
- Tax deductions for mortgage interest (loans, borrowings, etc.), with exceptions for first-time buyers.
- Tax deductions for ‘standard’ upkeep, maintenance and renovation costs (interior, refurbishment, maintenance). These deductions will be abolished at federal level.
- Tax deductions for energy-efficiency renovations, energy-efficiency improvements and other protective or environmental measures — unless a canton decides to retain local incentives.
In other words: the tax relief you previously received for renovating or maintaining your home will, in most cases, no longer apply.
What are the potential implications of the reform for property owners from 2028 onwards?
- For newer properties that have already been written off or require little future work, the reform may be beneficial:
– Tax is no longer calculated on a notional income
– Expenses are no longer deductible
– It reduces the tax burden
- For older properties requiring renovation or regular maintenance (insulation, conversion, modernisation, etc.), there are a few disadvantages to consider:
– The removal of deductions could make renovation less attractive and thus undermine the ability to maintain a comfortable standard of living
– Some owners may postpone or even abandon their renovation and maintenance plans
– This could also have an impact on the property market: well-maintained, newer or ‘turnkey’ properties would become more attractive, whilst older properties requiring work might see their appeal diminish or their prices fall.
Which types of interior renovation work are currently eligible for the tax deduction on rental value in Switzerland?
This potentially applies to all rooms and all types of work (interior, energy-efficient, etc.). A ‘standard’ interior renovation (refurbishment, modernisation, kitchen or bathroom renovation, etc.) is currently eligible for the tax deduction.
As the current system remains in force until at least January 2028, these tax deductions are still available, and the most astute property owners will no doubt make the most of the final months of this rental value benefit to launch renovation projects for their homes.
The current tax deductions relate to:
- Interior refurbishment (floors, walls, ceilings)
- Modernisation/replacement of fixtures and fittings
- Kitchen refurbishment
- Bathroom refurbishment
- Miscellaneous maintenance work
- Improvements to comfort
- Replacement of obsolete appliances or installations
- Energy-efficiency work (insulation, windows, heating, etc.)
These expenses reduce your taxable income – and therefore your tax bill – until at least January 2028.
Is bespoke furniture eligible for tax relief in Switzerland?
YES, if they are part of a renovation or are replacing an existing installation.
- Bespoke bookcase
- Fitted cupboards
- Walk-in wardrobe
- Fitted furniture
NO, if they are regarded as a decorative ‘extra’ added to a property that is already fully fitted (this depends on the canton and the circumstances).
Conclusion: comparison table: before 2028 vs after 2028
Is BeHome Interiors able to manage renovation projects in Switzerland?
A resounding YES! BeHome Interiors specialises in interior design and renovation. We operate in the Lausanne, Geneva and Neuchâtel areas… and, depending on the scale of your project, we’re happy to travel to your home even if it’s further afield.
BeHome Interiors is able to manage large-scale interior works (bricklaying, electrical work, painting, etc.) and offer you an architectural and interior design project that places the emphasis on design and bespoke furniture. And as we support you from start to finish, we can advise you on lighting, household appliances, decorative items and furniture from our catalogue (sofas, tables, chairs, etc.).
We can help you prepare for the reform by carrying out your work before 2028, so that you can take advantage of the last remaining tax benefits.
Can BeHome Interiors advise its clients on any tax deductions available for renovation and maintenance work on their homes in Switzerland?
YES! BeHome Interiors will be able to advise you, based on your interior renovation project, on which items are eligible for tax relief and which are not.
Top tip: plan your renovation in advance! Demand for building work and refurbishments in older properties has been rising since the announcement of the reforms to the rental value and tax relief schemes. Please don’t hesitate to contact us to plan your project under the best possible conditions. Now is the time to get started!
Get your interior renovation project off to a stress-free start
BeHome Interiors is here to support you in Switzerland, in the Lausanne and Geneva areas, with your bespoke interior renovation project. Your interior design project is in safe hands.
