Imputed rental value abolished: renovating pays twice until the end of 2028

Switzerland has decided on the change of system: the imputed rental value (Eigenmietwert) is being abolished. What sounds like relief has a downside that is rarely talked about – with the imputed rental value, the tax deduction for renovations of an owner-occupied home disappears too. For homeowners in the Canton of Bern, that means there is a window of time, and it is closing.

What changes – and when?

Today, as an owner-occupier, you pay tax on the imputed rental value as notional income, but in return you can deduct maintenance and renovation costs and mortgage interest. With the reform approved by voters, both fall away: no more imputed rental value – but also no deduction for value-preserving work on an owner-occupied home. As things stand, implementation is planned for the start of 2029; the final date is set by the Federal Council in the implementing provisions.

The consequence is simple: if you are going to renovate anyway, do it before the change of system. The same renovation will cost noticeably more after tax from 2029 – not because tradespeople get more expensive, but because the tax authorities no longer chip in.

A worked example

Say you have your detached house renovated for CHF 40'000 – façade painted, interiors freshened up, parquet sanded. All of it value-preserving, all of it deductible:

The same renovation in 2029 costs you the full CHF 40'000. The example is deliberately simplified – your marginal rate depends on income, municipality and denomination – but the order of magnitude is right: for larger renovations, we are talking about five-figure sums.

Value-preserving or value-adding? The difference that matters

Only work that maintains or restores the existing condition is deductible. In the practice of our four trades, that means:

• Clearly value-preserving: repainting walls and ceilings, façade painting, repairing cracks and plaster, sanding and sealing parquet, replacing like-for-like flooring, mould treatment
• Clearly value-adding: additional rooms, higher specification, extensions – not deductible from income, but creditable against property gains tax (keep the receipts!)
• Mixed cases: many projects include both. The tax authority accepts a sensible apportionment – simplest when the quote separates the items clearly. That is exactly how we draw up our quotes.

The phasing trick: breaking progression twice

The deduction works against your tax progression – and that is steepest in the top band of your income. If you spread a large renovation over two tax years, you deduct twice in the most expensive tax band. In practice: façade and exterior work in 2027, interiors and floors in 2028. This planning still works until the end of 2028; after that, probably not. If you wish, we phase projects so that invoicing and execution fit your tax planning.

Practical checklist for Bern homeowners

• Take stock now: what is due in the next five years anyway? Everything value-preserving belongs before 2029.
• Don't plan for the last month: tradespeople's capacity gets tight towards the end of the window – and what counts is that the work and the invoice fall within the tax year.
• Ask for a quote with a tax split: value-preserving and value-adding work shown separately.
• Keep the receipts: including for the value-adding parts – they count later for property gains tax.
• Coordinate with your tax adviser: flat-rate deduction vs. actual costs, phasing, personal marginal tax rate.

Plan your renovation before 2029 – request a site visit View guide prices

As at June 2026. This article is not a substitute for tax or legal advice. The final federal implementing provisions and the practice of the Canton of Bern tax authority are what count. Discuss your personal situation with your tax adviser – we supply the receipts for your tax return.