Imputed rental value

Fictitious taxable income corresponding to the use value of owner-occupied property.

The imputed rental value (valeur locative) is a fictitious income that owner-occupiers must declare for tax purposes in Switzerland. It corresponds to the theoretical rent the owner could obtain by renting their property on the market.

In practice, the imputed rental value is set by cantonal tax authorities and generally represents between 60% and 70% of the effective market rent.

This taxable income is a peculiarity of the Swiss tax system. In return, owners can deduct mortgage interest and maintenance costs from their taxable income.

The abolition of the imputed rental value is regularly debated in Parliament. A reform would also entail the abolition of mortgage interest and maintenance cost deductions.

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