Swiss Cantons Mull New Property Tax After Eigenmietwert Abolition
Swiss cantons are considering implementing a new property tax following the abolition of the 'Eigenmietwert' (imputed rental value). While some cantons see potential revenue, others reject the tax due to administrative costs and complexity.
Key takeaways
- Swiss cantons are considering a new property tax to compensate for revenue losses after the abolition of the 'Eigenmietwert'.
- The Canton of Graubünden estimates its special property tax could generate around 40 million Swiss francs.
- Some cantons, like Nidwalden and Glarus, have rejected the tax due to administrative costs and complexity.
- Several cantons are leaving the decision to introduce the tax to individual municipalities.
Following the abolition of the 'Eigenmietwert' (imputed rental value) for homeowners, which took effect on September 28, 2025, Swiss cantons and municipalities face significant revenue losses. In response, some cantons are exploring the introduction of a new property tax, often referred to as an 'Objektsteuer' (object tax).
The potential for this new tax varies across cantons, with mountainous regions possessing numerous holiday homes showing particular interest. The Canton of Valais is currently developing a solution and is assessing the potential revenue and whether it can offset the losses from the Eigenmietwert abolition. The Canton of Graubünden plans to introduce a special property tax estimated to generate approximately 40 million Swiss francs for the canton. Municipalities in Graubünden could see an estimated 32 million francs, and churches around 4 million francs from this tax, specifically to compensate for the loss of revenue from second homes.
However, the adoption of such a tax is not uniform. The Canton of Ticino is also examining its introduction. In contrast, the Canton of Nidwalden has rejected the new tax, arguing it contradicts the reform's goal of simplifying the system and would incur administrative costs exceeding potential revenue. The Canton of Glarus also foresees high administrative and maintenance costs making the tax unviable.
Some cantons, like Bern and St. Gallen, are leaving the decision to individual municipalities. A significant number of cantons, including Aargau, Basel-Landschaft, Schaffhausen, Solothurn, Schwyz, Zug, and Zurich, have stated they will not introduce the tax. The Cantons of Fribourg and Lucerne's governments have leaned towards rejecting it, though parliamentary initiatives are pending. The situation remains undecided in several other cantons, including Geneva, Jura, Obwalden, Vaud, Appenzell Ausserrhoden, Basel-Stadt, and Thurgau, with a general tendency towards rejection.
Sources reviewed
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