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Swiss councils near agreement on imputed rental value and property tax reform

A resolution to the long-standing dispute over the imputed rental value in Switzerland is nearing, with the Council of States supporting a National Council proposal for a complete system change. This includes abolishing the imputed rental value for both primary and second homes, while allowing cantons to impose a property tax on second homes to offset revenue losses. Additionally, a compromise on debt interest deductions is being discussed, with potential tax losses estimated at CHF 430 million for the Confederation.

debate intensifies over proposed changes to commercial subletting laws

Parliament's proposed rental law revisions are causing concern among commercial tenants, who warn of negative impacts from stricter subletting rules, including a two-year limit. While the Swiss Trade Association supports the changes to curb abuses, critics argue it undermines existing legal certainty and could lead to landlord exploitation.

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