Eigenmietwert Abolished: What Changes (2029)

After decades of political argument, Switzerland has decided to abolish the Eigenmietwert, the imputed rental value that taxes homeowners as if they earned rent from living in their own property. In the federal vote of 28 September 2025, a clear majority approved a full system change, and the new rules are set to take effect on 1 January 2029. If you own your home or are thinking of buying, this is one of the biggest tax changes in a generation, and it cuts both ways: the notional income disappears, but so do most of the deductions that came with it. This guide explains, in plain language, what the Eigenmietwert was, exactly what the reform changes, and what it means for you. It is educational, not tax advice.

Because the change reshapes how home ownership is taxed, it interacts with mortgage and renovation decisions you might be weighing now. For the wider picture of how Swiss taxes fit together, see our guide to saving taxes in Switzerland, and read on for what specifically changes here.

What the Eigenmietwert is

The Eigenmietwert, or imputed rental value, is a uniquely Swiss rule: if you live in a home you own, the tax authorities treat the rent you would otherwise have to pay as taxable income and add it to your tax return. In exchange, owners can deduct mortgage interest and the cost of maintaining and renovating the property. The logic was to put owners and renters on a similar footing, but in practice it pushed people to keep large mortgages and gear up debt to maximise the interest deduction, which many saw as distorting and unfair, especially for retirees who had paid their homes off. That tension is why the system was debated for decades before this reform.

What the vote decided

On 28 September 2025, Swiss voters approved the reform with 57.7% in favour, ending the long stalemate. The decision is a genuine system change rather than a tweak: it removes the imputed rental value for both primary and secondary residences, and at the same time it strips out most of the deductions that were tied to it. Alongside the tax-law change, voters approved a constitutional amendment that lets cantons introduce a new object tax on second homes, so that tourism cantons which rely on holiday-home revenue are not left short. The reform now moves into implementation, with the detailed cantonal rules being worked out before it takes effect.

What changes from 2029

From the planned start in 2029, the imputed rental value no longer counts as income, so owner-occupiers stop being taxed on a rent they never actually receive. The trade-off is on the deduction side: the deduction for private mortgage interest is largely removed, and the deductions for property maintenance and renovation fall away, with the precise treatment of energy-saving measures still being settled in the implementing rules. First-time buyers are expected to keep a limited, time-decreasing interest deduction to ease the purchase. And cantons gain the option of an object tax on second homes. The before-and-after below summarises the shift.

Who benefits and who pays more

The reform helps and hurts different owners. People who have largely paid off their mortgage, often retirees, tend to benefit clearly: they lose deductions they barely used while shedding the imputed income, so their taxable income falls. Owners with large mortgages and high interest or maintenance deductions may end up worse off, because they lose more in deductions than they gain from dropping the imputed value. Second-home owners face a possible new object tax depending on their canton. Renters are not directly affected. Where you land depends on your mortgage size, your typical maintenance spending and your canton, which is exactly why a blanket "good" or "bad" verdict does not fit.

Energy retrofits and special cases

A few specifics deserve attention because they affect timing. Today, the cost of value-preserving maintenance and many energy-efficiency upgrades is tax-deductible, which has long encouraged owners to renovate. Once the deductions fall away, that incentive changes, and how energy-saving and heritage measures are treated under the new system is one of the details still being finalised, potentially with cantonal differences. First-time buyers are set to receive a special, limited interest deduction that tapers over the first years of ownership. If you are planning a major renovation or buying your first home, these transitional rules are the parts worth watching closely as the cantonal implementation firms up.

The timeline and what is still open

The reform was approved in September 2025 but does not take effect immediately. A transition period runs to the end of 2028, with the new system planned to apply from 1 January 2029. Until then, the current rules remain in force: the imputed rental value is still taxable and the existing deductions still apply, so nothing changes on your next few tax returns. What is still being defined is the cantonal detail, including whether and how each canton uses the new option to tax second homes and the exact handling of energy and renovation costs. Treat any precise figure with caution until your canton publishes its implementing rules.

What it means for your decisions

Because the change is real but still years away, the sensible response is to understand it rather than rush. Homeowners are now weighing questions such as whether the logic of holding a large mortgage purely for the interest deduction still applies, how to time a major renovation relative to 2029, and what a possible second-home tax means for a holiday property. There is no single right answer; it depends on your mortgage, your plans and your canton, and it is genuinely worth discussing with a tax advisor before acting. What this guide gives you is the map, not a prescription, so you can have that conversation from an informed position.

The bottom line

Switzerland’s vote to abolish the Eigenmietwert ends a decades-long debate and reshapes how home ownership is taxed from 2029: no more tax on a rent you never receive, but also far fewer deductions. Whether you come out ahead depends on your mortgage, your renovation plans and your canton, so understand the change now and revisit your plans as the cantonal rules firm up. See how property fits your wider finances in our cost of living guide, map your budget in the budget calculator, and let hopli keep your whole financial picture in one place as the rules change.