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| Yes, this is what happened to friends of ours. They declared their rental income as it was less than the notional value and thought this would lessen the tax due. In fact it had the reverse effect and the two were added together.
We also own a second place which we have rented. We have not received any tax bills as yet. Our friends are on a C permit, whilst we are Swiss, although I can't imagine this would make any difference. | |
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I think you would need to check up on this.
I would get your friend to query this with the Tax Office.
I would expect the Income Tax you would pay would be on the higher of the Actual Rent Received - Actual Costs
or Market Rental Value as given by Canton - Allowed Incidental Costs.
I say this because I think that the reason that they charge tax on rental value is to put people off from buying property and leaving it empty. this would create more demand for property (from locals) and create a price boom which from what ican see the Swiss arev trying to avoid which is the reason the country is not in a mess like the UK and USA.