Switzerland voted in favour of the reform: according to the Federal Council’s decision, the imputed rental value (Eigenmietwert) will be abolished from 1 January 2029.
At the same time, many existing tax deductions relating to owner-occupied residential property will be abolished or restricted.
For condominium owners, the window for tax optimisation is closing – but it is still open.
Tip 1: Increase contributions to the renewal fund
Contributions to a condominium owners’ association’s renewal or reserve fund are currently generally tax-deductible as maintenance costs, provided the requirements of the relevant cantonal tax authority are met.
The following points are typically relevant:
- The contributions are held in an account belonging to the condominium owners’ association and remain clearly allocated to the renewal fund.
- The arrangement is a genuine condominium ownership structure – ordinary co-ownership or joint ownership generally does not qualify.
- The fund regulations restrict the use of the money to repairs and maintenance of shared facilities.
When previously deducted funds are later used, the expenditure generally cannot be deducted a second time.
It may therefore be worth reviewing contributions before the end of 2028 and increasing them where renovations are already planned.
Any increase should be based on a reasonable renovation and financing plan and be properly approved by the condominium owners’ association.
In practice: Is a new roof, heating system or façade renovation planned? It may be worth examining whether an earlier contribution to the renewal fund makes sense from both a tax and financial perspective.
Tip 2: Bring planned renovations forward
If renovations are already planned, consider whether they can be completed before 2029.
Energy-saving and environmental measures may be particularly relevant, including:
- Heat pumps
- Window replacements
- Thermal insulation
Tax deductions can often be combined with cantonal or municipal subsidy programmes.
Under the residential property tax reform, deductions for energy renovations will no longer be available for direct federal tax from 2029. Depending on cantonal law, cantons may continue to provide such deductions until 2050 at the latest.
Tip 3: Document value-enhancing costs carefully
Value-enhancing investments will remain important after the imputed rental value is abolished.
When the property is later sold, these expenses may be recognised as investment costs for real estate capital gains tax, provided the relevant cantonal requirements are met.
- Keep receipts
- Archive invoices
- Retain proof of payment
- Describe the work carried out clearly
- Document value-preserving and value-enhancing expenses separately
Complete documentation may reduce the tax payable when the property is sold.
What changes from 2029 – at a glance
| Deduction | Until 2028 | From 2029 |
|---|---|---|
| Renewal fund contributions | Generally deductible; cantonal practice should be checked | Generally no longer deductible for owner-occupied residential property |
| Maintenance and renovation costs | Deductible | No longer deductible for owner-occupied residential property |
| Energy renovations at federal level | Deductible | No longer deductible |
| Energy renovations at cantonal level | Deductible | May remain available in some cantons until 2050 at the latest |
| Mortgage interest on owner-occupied residential property | Deductible under current law | Generally no longer deductible; first-time buyers may qualify for a decreasing deduction for up to ten years |
How iqtax helps
iqtax guides you step by step through your tax return and prompts you to review relevant areas such as deductions relating to residential property.
This helps you identify potential deductions in good time and record the required supporting documents completely.
Conclusion
The period until the end of 2028 is limited – but there is still enough time to coordinate planned measures in a tax-efficient way.
- Review renewal fund contributions and consider an increase based on a renovation plan
- Bring planned renovations forward – especially energy-efficiency measures
- Check subsidy programmes before work begins
- Document value-enhancing investments completely
- Consider the applicable cantonal tax practice
Get started
Official sources and further information
- Federal Council: abolition of the imputed rental value takes effect in 2029
- Federal Department of Finance: residential property tax reform
- Federal Tax Administration: system change in residential property taxation
- Fedlex: Federal Act on the change in residential property taxation
- Official referendum result
- Swiss Buildings Programme
- energiefranken.ch: subsidy programmes by location
This article provides general information and does not replace individual tax advice. The tax treatment of renewal fund contributions, energy measures and value-enhancing investments depends on personal circumstances, cantonal law and the practice of the relevant cantonal tax authority.
Arbnor Jashari
July 14, 2026
Category:
Save taxes
,Properties
,Time to read:
7 minutes
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