National Council Votes to Abolish Imputed Rental Value for Secondary Residences

The National Council has voted to abolish the imputed rental value for secondary residences. At the same time, a constitutional basis for a property tax is to be created to allow cantons and municipalities to compensate for revenue losses. This controversial proposal, which has already failed twice at the polls, will now go to the Council of States.

The abolition of the imputed rental value could have significant financial implications, especially for tourism-dependent cantons. However, the National Council is seeking a long-term solution with compensation through a property tax. This new tax system could lead to property owners being taxed directly based on the market value of their properties, ensuring a fairer distribution of tax burdens. Furthermore, the National Council hopes that abolishing the imputed rental value will invigorate the real estate market and increase the availability of rental properties, as owners might be more inclined to rent out unused apartments instead of leaving them vacant.

The debate in the National Council showed a wide range of opinions, with proponents of the change arguing that the current regulation is outdated and no longer reflects the reality of many property owners. Critics, on the other hand, warn of the financial consequences for public budgets and call for detailed analyses of the economic impacts of this reform.

If the Council of States agrees to the proposal, it would be a significant step towards comprehensive tax reform that could modernize property taxation in Switzerland. However, intense discussions and potential adjustments are expected before a final decision is made. In the meantime, various interest groups are planning campaigns to inform and influence public opinion about the significance and potential impacts of this legislative change.