On September 28, 2025, the Swiss electorate approved the abolition of the imputed rental value with a solid 57% yes vote. In April 2026, the Federal Council decided that the system change will come into force on January 1, 2029.

The old rules continue to apply until the end of 2028. After that, several things will change for owner-occupied residential property – and noticeably so. Here you can find out exactly what is coming and why it may be worthwhile to make larger investments before 2029.

What exactly changes from 2029?

Today (until December 31, 2028):

• You must declare the imputed rental value of your owner-occupied house or apartment as notional income for tax purposes.

• In return, you can deduct mortgage interest and maintenance and renovation costs (including energy efficiency measures) from your taxable income.

From January 1, 2029:

• The imputed rental value is abolished → You no longer declare notional income.

• At the same time, the deductions for mortgage interest and maintenance/renovation costs for owner-occupied residential property are eliminated (federal and cantonal levels).

This is a genuine system change: less income on one side, but also fewer deductions on the other.

Why is it worthwhile to invest in renovations now?

Many property owners ask themselves: Should I carry out major renovations or energy efficiency upgrades before 2029 or rather afterwards?

The clear recommendation from many tax experts is: For larger projects, an earlier date is often worthwhile.

Reasons for this:

• Maintenance and renovation costs are still fully deductible until the end of 2028. After that, they are no longer (or only to a very limited extent).

• Energy efficiency measures (e.g., new heating system, insulation, windows, solar installation) can currently not only be deducted for tax purposes but often combined with subsidy contributions.

• Anyone planning and carrying out larger works in 2027 or 2028 can still claim the costs for tax purposes and at the same time benefit from lower energy costs in subsequent years.

Further points you should check now

Conclusion: Not everything at once, but plan in good time.

The abolition of the imputed rental value is a long-term relief for many homeowners – especially for those with low or no mortgage. For heavily indebted owners or people with high maintenance costs, however, the elimination of the deductions can be noticeable.

Anyone planning major renovations or energy efficiency improvements should now discuss the timetable with a fiduciary or tax expert.

LIBERTAS Treuhand is happy to advise you individually and show you which measures are still tax-advantageous – and which can also be implemented after 2029.

Contact us for a non-binding conversation.