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Old 05.12.2020, 11:34
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Eigenmietwert - which taxes it impacts?

If I understand it correctly I add Eigenmietwert (when I own a flat or house) to my income and pay taxes from it.
Is my understanding correct that Eigenmietwert increases all 3 taxes: Gemeindesteuer, Kantonssteuer, Direkte Bundessteuer?
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Old 05.12.2020, 11:41
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Re: Eigenmietwert - which taxes it impacts?

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If I understand it correctly I add Eigenmietwert (when I own a flat or house) to my income and pay taxes from it.
Is my understanding correct that Eigenmietwert increases all 3 taxes: Gemeindesteuer, Kantonssteuer, Direkte Bundessteuer?
Yes. It increases your taxable income on all three levels. But not your taxable wealth (there is no federal wealth tax).

Be aware that the Eigenmietwert used for federal taxes might be different than for the commune/canton tax.
See the two Rundschreiben 2-172-D-2019 https://www.estv.admin.ch/estv/de/ho...schreiben.html
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Old 05.12.2020, 12:19
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Re: Eigenmietwert - which taxes it impacts?

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If I understand it correctly I add Eigenmietwert (when I own a flat or house) to my income and pay taxes from it.
Is my understanding correct that Eigenmietwert increases all 3 taxes: Gemeindesteuer, Kantonssteuer, Direkte Bundessteuer?
Assuming you are residing in the property.

Otherwise you use the actual rental income.
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Old 05.12.2020, 13:17
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Re: Eigenmietwert - which taxes it impacts?

Yes it increases your overall taxable income hence the % used to calculate income taxes at all 3 levels on overall income.
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Old 05.12.2020, 14:07
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Re: Eigenmietwert - which taxes it impacts?

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If I understand it correctly I add Eigenmietwert (when I own a flat or house) to my income and pay taxes from it.
Is my understanding correct that Eigenmietwert increases all 3 taxes: Gemeindesteuer, Kantonssteuer, Direkte Bundessteuer?
Yes, aka income taxes.

But you also deduct the costs, which are normally higher.

Tom
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Old 05.12.2020, 14:52
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Re: Eigenmietwert - which taxes it impacts?

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But you also deduct the costs, which are normally higher.
I am still not 100% sure what costs can be deducted.

Obvious ones are mortgage interests and renovation costs, but what about a cleaner? Can I deduct that?
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Old 05.12.2020, 14:53
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Re: Eigenmietwert - which taxes it impacts?

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Assuming you are residing in the property.

Otherwise you use the actual rental income.
But if you don't live there and you don't rent it out, then it's Eigenmietwert again.
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Old 25.08.2021, 13:37
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Re: Eigenmietwert - which taxes it impacts?

Possibly some good news for homeowners. Blick is reporting that the Bundesrat is now in favor of abolishing Eigenmiete (imputed rent). Below is a translated excerpt from the article:

"Federal Council wants to abolish imputed rental value
A fundamental change is to take place in the Swiss tax system: The taxation of imputed rental value is to be abolished at federal and cantonal level. The Federal Council has decided to support a corresponding bill from parliament."

https://www.blick.ch/wirtschaft/wech...d16778720.html

Although this looks positive, counting your chickens before they hatch isn't always the best idea.
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Old 25.08.2021, 13:39
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Re: Eigenmietwert - which taxes it impacts?

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Although this looks positive, counting your chickens before they hatch isn't always the best idea.
I would not be surprised if mortgage interest deduction were to get abolished at the same time.
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Old 25.08.2021, 13:46
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Re: Eigenmietwert - which taxes it impacts?

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I would not be surprised if mortgage interest deduction were to get abolished at the same time.
I'm sure it will be - but the difference will be generally in homeowners' favour...
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Old 25.08.2021, 13:49
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Re: Eigenmietwert - which taxes it impacts?

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I would not be surprised if mortgage interest deduction were to get abolished at the same time.
Perhaps capped rather than abolished. There is no specific deduction for mortgage interest, but rather for interest generally. So you can deduct unsecured loan interest, credit card interest, Lombard loan etc. as well. Killing the whole thing would have wider repercussions that just home owners.
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Old 25.08.2021, 14:06
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Re: Eigenmietwert - which taxes it impacts?

Wasn't there a referendum or initiative about this a few years ago that proposed the same thing but was defeated.
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Old 25.08.2021, 14:08
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Re: Eigenmietwert - which taxes it impacts?

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Wasn't there a referendum or initiative about this a few years ago that proposed the same thing but was defeated.
Correct, about 16 years ago as I was thinking about buying at the time
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Old 25.08.2021, 14:13
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Re: Eigenmietwert - which taxes it impacts?

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Correct, about 16 years ago as I was thinking about buying at the time
Wow. How time flies! I could have sworn it was last Thursday...
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Old 26.08.2021, 11:12
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Re: Eigenmietwert - which taxes it impacts?

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I would not be surprised if mortgage interest deduction were to get abolished at the same time.
But capital gains tax will probably remain which makes home ownership less attractive and less obtainable for 1st home buyers.

As a house/home owner in both Australia and Switzerland it is interesting to compare the two systems. In owner occupied property in Australia there is no capital gains tax also no deducibles, so buying/renovating/selling property is an attractive tax free earner but does drive up property prices. Here, buying and renovating (depending on location and your personal tax rate) is attractive as nearly everything is deducible but selling is unattractive if you have to pay capital gains tax. Given Eigenmietwert is lower than market rents it is quite fair and affordable if you are in the position to own a property.

Whilst no one likes paying tax, the rates and spread of taxes here are quite fair compared to a lot of countries so for me I am happy with the status quo. Now if there was a way to get multinational companies to pay tax where they earned their revenue, it would get my vote! But that is a whole nother thread....
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