Swiss voters abolish imputed rental value: what impacts and what to expect in Valais?

It’s now official: on September 28, 2025, the Swiss people voted yes to abolish the imputed rental value. A historic reform has just been adopted, ending a controversial tax on a fictional income that homeowners don’t actually receive.

But while this vote marks a national turning point, Valais, a canton with a majority of homeowners, finds itself at the heart of many questions. What will be the concrete impacts for Valais households? How will this reform change things on a fiscal, economic and political level in our region? And when will it come into force?

Complete analysis of a societal choice that will reshape real estate taxation in Switzerland.

Voting results: Switzerland says YES, but Valais says NO

In the ballot of September 28, 2025, 57.7% of Swiss voters accepted the federal reform on housing property taxation.

But the Canton of Valais predominantly rejected the text, with approximately 61% voting no.

This gap highlights a strong regional reality: in Valais, where more than 60% of the population owns their home, the reform is perceived with mistrust, even as a disguised fiscal threat.

Reminder: what is imputed rental value and why abolish it?

Imputed rental value is a fictional income imposed on homeowners living in their own dwelling. In Switzerland, it’s considered that a homeowner “pays rent to themselves,” and this estimated amount based on the property’s value is added to their taxable income.

In return, homeowners can deduct mortgage interest and property maintenance costs.

Why is this system criticized?

This system presents several major flaws. It penalizes prudent homeowners who have paid off their mortgage, encourages long-term debt to benefit from tax deductions, and is considered complex, unfair and obsolete.

When will this reform come into force?

Implementation will be gradual. The provisional timeline extends from 2026 to 2028. During the years 2026-2027, cantonal and federal laws will be adapted. The new tax regime is scheduled to come into force in 2028, if all conditions are met.

In short: nothing changes immediately. Valais homeowners still have 2 to 3 years to anticipate and adjust their wealth management strategy.

What the reform specifically provides for

What is abolished

The reform abolishes imputed rental value for primary and secondary residences, as well as federal deductions for mortgage interest, maintenance work and energy renovations.

What can be maintained at cantonal level

Each canton remains free to maintain or not deductions for maintenance work, renovation or energy improvements. Valais can therefore continue to offer these deductions if it wishes.

What is introduced

The reform introduces an optional cantonal tax on secondary residences, intended to compensate for fiscal losses due to the abolition of imputed rental value.

The particular case of Valais: what local issues?

Valais is one of the cantons most affected by this reform, for several reasons.

A canton of homeowners

With a very high homeownership rate, many Valais households still benefit from deductions for mortgage interest and maintenance work. The abolition of these deductions at federal level could therefore increase the tax burden for certain households, particularly young families with high mortgages, owners of chalets or old dwellings requiring renovations, and holders of secondary residences in tourist resorts like Verbier, Nendaz or Crans-Montana.

A strong presence of secondary residences

Valais has nearly 40% secondary residences in certain tourist municipalities. These properties were until now partially taxed via imputed rental value. By eliminating this tax base, the canton loses an important resource and will have to decide whether to implement a new cantonal real estate tax to compensate.

A political effect to monitor

This massive rejection of the project at cantonal level creates tension between local popular will and federal decision. Valais will have to deal with an imposed reform while trying to defend its specificities, particularly by negotiating the implementation of a tax on secondary residences adapted to local realities.

Winners and losers in Valais: who benefits from the reform?

Potential winners

Certain categories of homeowners will benefit from this reform. Homeowners without debt or close to retirement will see their taxable income decrease with the abolition of imputed rental value, without loss of deductions. All taxpayers will benefit from more readable and predictable taxation. Households wishing to pay off their loan will no longer need to “keep debt” just for tax reasons.

Potential losers

Other categories will however be disadvantaged. Young households or recent buyers will suffer from the loss of mortgage interest deductions. Owners of old or poorly insulated dwellings will have less tax incentive to invest in energy renovation, unless the canton maintains these deductions. Tourist municipalities risk fiscal loss if the canton delays implementing a replacement tax.

What to do now as a Valais homeowner?

Faced with this reform, several concrete actions should be considered. It’s recommended to perform a tax simulation of your current situation compared to the new regime and to anticipate changes by 2028, but without rushing. Avoid hasty decisions: there’s no need to pay off debt or launch urgent renovation work. It may be wise to consult a tax or real estate advisor to adjust your wealth management strategy. Finally, closely follow the decisions of the Valais Grand Council, particularly regarding the potential introduction of a tax on secondary residences or the maintenance of cantonal deductions.

Conclusion: a historic reform, but to be closely monitored in Valais

Switzerland is turning a page in real estate taxation. Farewell to imputed rental value, a mechanism deemed obsolete but still deeply rooted in the finances of many cantons.

For Valais, the transition promises to be delicate. A balance will need to be found between tax fairness, budgetary sustainability and preservation of the local fabric, particularly in tourist areas.

More than ever, homeowners must stay informed, anticipate and surround themselves with good advice to navigate this change with serenity.