Key points at a glance
- From 1 January 2029, imputed rental value will no longer be taxed on owner-occupied homes.
- At the same time, maintenance costs for owner-occupied properties will no longer be deductible.
- Mortgage and other debt interest will only be deductible to a limited extent – first-time buyers will be entitled to a temporary, capped deduction.
- The cantons may introduce a special tax on second homes that are mainly used by their owners.
What is changing
Until now, owners have had to pay income tax on the imputed rental value – a notional rent for the property they live in themselves. In return, they could deduct maintenance costs as well as mortgage and other debt interest. The reform abolishes this system for owner-occupied homes: no more imputed rental value, but no maintenance deduction either. For rented-out properties, maintenance costs remain deductible.
What this means for you
Renovations
Until the reform comes into force, maintenance costs for owner-occupied property can still be deducted. If you are planning to renovate anyway, it is therefore worth reviewing the timing with your tax adviser. In the canton of Fribourg, too, the number of building permit applications for alterations to single-family houses has risen markedly of late.
Mortgage
Without the interest deduction, a large mortgage on your own home loses some of its tax appeal. Paying it down can be worthwhile – but whether this makes sense in your situation depends on your assets, retirement planning and liquidity.
Plans to sell
The reform is no reason to rush into a sale. For many owners without debt, the tax burden will actually fall. If you are planning to sell anyway, however, you should consider condition, renovation needs and timing together: renovating before a sale can have a different effect on tax and on price than selling in the current condition.
Second homes
The cantons can introduce a special property tax on second homes that are mainly used by their owners. Owners of holiday homes should follow how the canton of Fribourg and the cantons where their properties are located make use of this option.
What you should check now
- Schedule planned renovations – with an eye on deductibility until the end of 2028.
- Discuss your mortgage strategy with your bank and tax adviser.
- Know the current value of your property – as the basis for all further decisions.
- If you intend to sell: plan the timing, condition and taxes together.
This article is general information, not tax advice. Source: Swiss Federal Tax Administration (FTA), as of October 2026.