Anyone who occupies their own property in Switzerland must pay tax on the “imputed rental value”, also known as the “rental value of owner-occupied property”. This is a tax on notional income – i.e. an estimated rental income that the owner would receive if the property were rented.
Since property owners live in their own home, they don’t receive any rental income, but they do earn income in kind which is equivalent to the amount of rental costs they save. The imputed rental value varies from canton to canton – generally speaking, it is about 60 to 70 percent of the amount that a tenant would have to pay in annual rent for the residential property in question.
This fictitious income, like actual income from rental property, is subject to income tax and must be declared accordingly. At the end of the year, on the other hand, a whole range of tax deductions can be claimed, which will be discussed in detail later in this article.