The Federal Council and Parliament urge voters to back, on 28 September 2025, a constitutional change that would let cantons levy a special property tax on owner-occupied second homes. The measure is a prerequisite for a wider reform of housing taxation that would scrap the “imputed rent” now charged to home owners. At a press conference on 15 August 2025, President Karin Keller-Sutter set out the case for approval.
Today Swiss homeowners must declare as income the notional rent their property could fetch, while deducting most mortgage interest and maintenance costs. Under the reform, imputed rent on main and second homes would be abolished and most deductions pared back. First-time buyers of a primary residence would get a capped, temporary deduction for interest payments. Each canton would decide whether to introduce the new second-home levy—and at what rate.
The overhaul is meant to curb incentives to take on debt and to simplify the tax system for households and cantonal administrations alike. Its effects would hinge on interest rates. With low rates, most owners—especially those who have paid down much of their mortgage, often retirees—would see their tax bills fall. With higher rates, most would pay more, since interest could generally no longer be deducted; the first-home allowance would soften the blow only slightly.
Public finances would move in tandem. If mortgage rates stayed around 1.5%, combined revenues for the Confederation, cantons and communes would fall by an estimated CHF 1.8 billion. At rates above 3%, receipts would rise. These projections exclude any proceeds from a second-home tax, which could help tourism cantons offset losses, as they could tailor the levy to local needs.
Earlier attempts to abolish imputed rent foundered because too many deductions were retained. After years of wrangling, Parliament has produced what the Federal Council deems a balanced package. By limiting federal deductions to the bare minimum, it seeks to contain revenue losses across all tiers of government—provided voters first change the constitution on 28 September 2025.
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