It is well known that our politicians have been working for decades on a new solution for the taxation of residential property, specifically the abolition of the deemed rental income (Eigenmietwert). Most recently, there was hope that this old project could now actually succeed. However, the National Council and the Council of States have once again failed to agree on the details and the matter is now back before the National Council for a possible vote on the differences. The points of contention are second homes and the debt interest deduction.
For understandable reasons, it is primarily the tourist cantons that are opposed to the abolition of the deemed rental income for second homes, as the taxes on these usually represent the only tax revenue for owners of a second home/residence that remains with the property canton.
In our opinion, however, unequal tax treatment of second homes through an imputed rental value would again only be a patchwork and not a suitable solution. To be continued.
