The Federal Council and Parliament recommend the adoption of the home ownership tax reform.
On 28 September 2025, the Swiss people and cantons will vote on a constitutional amendment that would allow cantons to levy a special property tax on predominantly owner-occupied second homes – such as holiday apartments. This amendment is a prerequisite for a comprehensive reform of home ownership taxation, which also includes abolishing the imputed rental value on primary and secondary residences. The two proposals (Tax News from December 2024) can only enter into force together. Only if both the Swiss people and the cantons approve the special property tax on second homes will the taxation of the imputed rental value be abolished.
The reform would not only abolish the imputed rental value but also eliminate deductions for mortgage interest and maintenance costs. An exception applies to first-time purchases of owner-occupied primary residences: In these cases, a temporary first-time buyer deduction for mortgage interest is planned. The aim is to reduce incentives for high levels of private debt and to simplify the tax system.
The impact of the reform on homeowners and the state will largely depend on mortgage interest rates. At low rates, tax burdens would decrease in many cases, particularly for owners with little or no debt. At higher rates, tax burdens would tend to rise. However, each case is different, and no general conclusions can be drawn.
According to a survey conducted by Tamedia, 65% of voters currently support abolishing the imputed rental value. If the reform is adopted, tourism-oriented cantons will be able to offset any potential shortfall in revenue with a new special property tax on second homes.
Read the full statement here.