What is Eigenmietwert (imputed rental value) and how is it taxed in Switzerland?

Eigenmietwert is a notional income that Switzerland adds to the taxable income of owner-occupiers. The concept is that by living in your own home you are effectively receiving a benefit equivalent to the rent you would otherwise pay. The cantonal tax authorities estimate the rental value of your property — typically at 60-70% of the going market rent — and include it as income on your tax return.

In exchange, mortgage interest and a flat or actual amount for maintenance costs are deductible. For many homeowners with large mortgages, the deductions roughly offset the imputed rental income. As mortgages are paid down and properties appreciate in value, the Eigenmietwert rises while the mortgage deduction shrinks, increasing the net tax burden for older debt-free homeowners.

The system has been widely criticised and debated for decades. A federal parliamentary initiative to abolish it for primary residences was voted down in 2023 at the National Council level; reform attempts continue but remain unresolved. Until the law changes, Swiss homeowners must declare the Eigenmietwert annually. The cantonal assessed value (Steuerwert) of the property, not the market price, is the basis for the calculation — typically 70-80% of market value.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.