Abolition of Imputed Rental Value: Impact for Geneva Owners

The historic tax reform approved by the Swiss electorate on September 28, 2025, represents a major turning point for property owners in Geneva. With the Federal Council confirming an entry into force on January 1, 2029 [3, 6], the period leading up to 2027 serves as a strategic window to optimize your financial situation before this paradigm shift.

The Reform Timeline: What Changes in 2029

Until the 2028 tax year, the current system remains unchanged: owners continue to declare an imputed rental value as notional income while benefiting from deductions for maintenance costs, energy-saving measures, and mortgage interest [3, 6]. From January 1, 2029, the imputed rental value will be abolished for primary and secondary residences occupied by their owners [3, 5, 10]. In exchange, most federal-level deductions for maintenance and renovations will be eliminated [3, 5, 10].

Fiscal Consequences for Geneva Property Owners

The impact of this reform will depend primarily on your debt level and the condition of your property [3, 8]:

• Owners with low debt: These individuals are the primary beneficiaries of the reform. The abolition of the imputed rental value mechanically reduces your taxable income without the loss of deductions (due to low mortgage interest) offsetting this advantage [3, 5, 8].
• Highly leveraged owners: The strict limitation on mortgage interest deductions, now reserved primarily for first-time buyers for a limited period, could increase your overall tax burden [3, 5, 6].
• Older properties or those requiring renovation: The end of tax deductibility for maintenance costs will make renovation investments less fiscally attractive after 2029 [3, 5, 10].

Strategy for Transactions and Renovations until 2027

The years 2026 and 2027 are critical for Geneva property owners [3, 10]. If you are considering energy-efficient renovations or significant maintenance, it is highly recommended to plan these before the law takes effect [3, 10]. Once the new system is in place, you will no longer be able to deduct these costs from your taxable income [3, 5, 10]. Regarding transactions, the market may see an acceleration of renovation projects through the end of 2027 to maximize the final tax deductions available under the current regime.

Key Takeaways

The abolition of the imputed rental value simplifies tax returns but removes traditional tax optimization levers. Geneva owners must anticipate this transition by evaluating their debt-to-asset ratio and completing necessary works before 2029. OAKSWELL recommends a personalized analysis of your situation to adjust your real estate strategy before the transition period ends.

Frequently Asked Questions

Will the imputed rental value be abolished in 2027?

No, the current system remains in force through the 2028 tax year. The effective abolition is set for January 1, 2029 [3, 6].

Can I still deduct mortgage interest after 2029?

Mortgage interest deductions will be severely restricted and reserved primarily for first-time homeowners for a period of ten years [3, 5, 6].

What is the impact on secondary residences?

The imputed rental value will be abolished, but a new special tax on secondary residences has been introduced to compensate for cantonal tax losses [3, 10].

Sources

• UBS, "How to deduct taxes when buying private property", July 2026 [3].
• Lenz & Staehelin, "Abolition of the taxation on imputed rental value tax", 2026 [5].
• Pretimmobilier.ch, "How to deduct mortgage loan interest in Switzerland", April 2026 [6].
• Association of Foreign Banks in Switzerland (AFBS), "News April 2026", May 2026 [8].
• Comptoir Immobilier, "The abolition of the deemed rental value", July 2026 [10].