Glossary
Imputed Rental Value Switzerland (Eigenmietwert) — Definition & Calculation 2026
Denis Smajovik
- Founder & CEO
- FINMA-registriert (F01490726)
- BSc ZHAW
- Updated 2026-04-23
What is Imputed Rental Value Switzerland (Eigenmietwert)
Imputed Rental Value Switzerland (Eigenmietwert)
The imputed rental value (German: Eigenmietwert) is a notional income that Swiss tax law attributes to anyone who owns and occupies residential property. Instead of paying rent, you live in your own home — and the Swiss tax system treats the rent you save as if it were income you earned. This amount must be added to your taxable income each year. The legal basis is Art. 21 para. 1 lit. b of the Federal Direct Tax Act (DBG), along with the corresponding cantonal tax laws.
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Imputed Rental Value in the Swiss Tax System
Switzerland is one of very few countries that taxes a fictitious rental income on owner-occupied homes. The underlying logic is tax neutrality: a renter pays rent with after-tax income and cannot deduct it, while a homeowner benefits from living rent-free. By taxing the imputed rental value, the Swiss system attempts to treat both groups equally.
In return for declaring this notional income, you are entitled to deductions that tenants cannot claim: mortgage interest (Schuldzinsen) and value-preserving maintenance costs (werterhaltende Unterhaltskosten). These deductions can substantially reduce the net tax effect.
[!info] The imputed rental value is calculated differently in each canton. As a rule of thumb it equals 60–70% of the market rent your property could command on the open market.
How the Imputed Rental Value is Calculated
The cantonal tax authority determines the official imputed rental value for your property based on its own assessment methods. The starting point is always the estimated annual market rent, multiplied by the applicable cantonal percentage (typically 60–70%).
Worked example — 4-room apartment in canton Zürich, market value CHF 1,200,000:
| Item | Amount |
|---|---|
| Estimated annual market rent | approx. CHF 36,000 |
| Imputed rental value (70% of market rent) | approx. CHF 25,200 |
| Deduction: mortgage interest (CHF 600,000 × 2%) | − CHF 12,000 |
| Net income effect | CHF 13,200 |
At a marginal tax rate of 33% this produces an additional tax burden of approximately CHF 4,350 per year — after deducting mortgage interest. Homeowners who have fully paid off their mortgage face a higher net burden because they have no interest to offset.
Cantonal Differences in Assessment
Although Art. 21 para. 1 lit. b DBG anchors the imputed rental value in federal law, each canton sets its own method for determining the official assessed figure. This creates noticeable differences across cantons:
| Canton | Assessment method | Rate | Notable feature |
|---|---|---|---|
| Zürich | Official rental value (last Steuerwert review) | 70% | Values sometimes not updated for 20+ years |
| Bern | Cantonal valuation commission estimate | 60% | Regular review every 10 years |
| Zug | Official rental value | 70% | Low absolute values due to generally lower rents |
| Aargau | Cadastral value based | 70% | Cadastral value often well below market |
| Lucerne | Market rent estimate | 60% | 60% floor anchored in federal law |
| Graubünden | Lump-sum estimate | 60% | Applies to holiday apartments too |
If the cantonal authority's assessed value exceeds 70% of the current market rent for a comparable rental property in your municipality, you can formally contest it. Submit an objection with the next tax assessment, attach an independent rental appraisal (cost approximately CHF 500–1,500), and request a reduction. The objection window is typically 30 days from the date of the assessment notice.
Deductions You Can Claim Against the Imputed Rental Value
As a Swiss homeowner you can deduct two categories of costs against your imputed rental value:
1. Mortgage interest (Schuldzinsen) All interest on mortgages, personal loans, and other debt is deductible up to the level of investment income plus CHF 50,000.
2. Maintenance costs (Unterhaltskosten) You choose every year between two methods — you are free to switch annually:
| Method | Deduction | When it pays off |
|---|---|---|
| Lump-sum | 10% of imputed value (buildings under 10 years old) or 20% (over 10 years) | In years without major renovation work |
| Actual costs | Full documented costs with receipts | In years with boiler replacement, roof work, or facade renovation |
[!tip] Time large renovations strategically across two tax years. In the year with high costs, choose the actual-cost method. The following year, revert to the lump-sum. This approach maximises your deductions while minimising the administrative burden.
Where to Declare It in Your Swiss Tax Return
In your Swiss tax return the imputed rental value is declared in the form "Real estate and land" (Liegenschaften und Grundstücke):
- Imputed rental value (income): enter the official figure as communicated by the cantonal tax authority.
- Mortgage interest (deduction): attach the interest certificate from your bank.
- Maintenance costs (deduction): choose lump-sum or actual costs and attach receipts if needed.
Avenzo imports the official cantonal imputed rental value automatically and pre-fills all three fields in your return.
The Abolition of the Imputed Rental Value — Current Status 2026
Swiss voters approved the abolition of the imputed rental value for owner-occupied primary residences on 28 September 2025. The new rules are planned to take effect on 1 January 2029. Holiday homes and second residences are explicitly excluded — the imputed rental value will continue to apply to them.
[!warning] The abolition comes with a trade-off. From 2029, homeowners will no longer need to declare an imputed rental value for their primary residence, but they will also lose the right to deduct mortgage interest and maintenance costs for that property. Energy-efficient renovation costs are expected to remain deductible. Homeowners with a large mortgage may be worse off without the interest deduction — seek individual advice before making major financing decisions based on the new rules.
Until 2029, the current rules apply without any change.
FAQ
Frequently Asked Questions
Yes. The imputed rental value applies to all owner-occupied properties — including holiday homes and second residences. The amount is prorated according to the actual days of personal use. If you rent the property out for part of the year, the rental income for those days must also be declared separately.
Once you rent out the property in full, the imputed rental value no longer applies. Instead, you must declare the actual rent received as income. Mortgage interest deductions and maintenance cost deductions remain available.
Generally no. The imputed value is deliberately set below the market rent — at 60–70% of comparable market rents. In many cantons the official assessed values have not been updated for decades, so the absolute figure may still be significantly below actual market levels. In high-cost locations such as Zürich, Zug, or Geneva the absolute amount can nonetheless be substantial. If your canton's assessed value exceeds 70% of the current market rent, you can formally contest it with the cantonal tax authority.
The cantonal tax authority communicates the official imputed rental value in your tax assessment or on a separate information sheet. For an advance estimate, use the Avenzo imputed rental value calculator at /de/rechner/eigenmietwert-rechner/ (currently available in German only) — select your canton and enter the property's market value.
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This glossary entry does not constitute individual tax or financial advice. All information without warranty — subject to legislative changes.