How is rental income taxed in Switzerland?

Rental income from Swiss property is taxed as ordinary income at your marginal rate, added to your other income for the year. You declare gross rental receipts and can deduct actual maintenance costs, repairs, insurance, administration fees, and mortgage interest. Alternatively, you can use a flat-rate deduction of 10% or 20% of gross rental income (depending on the age of the property) in place of actual costs.

Owner-occupied property is treated differently: Switzerland imputes a deemed rental income (Eigenmietwert) — a notional amount representing what you would pay if renting your home. This is added to taxable income. In return, you can deduct mortgage interest and maintenance costs. This system is controversial and reform has been debated for decades.

Rental properties are also subject to wealth tax on their assessed value. Capital gains on the eventual sale are taxed at the cantonal level under the Grundstückgewinnsteuer, at rates that decrease with longer holding periods.

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