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Old 13.08.2007, 21:17
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House purchase in Aargau...please help

Hi All,

Im about to buy a house in Aargau. I however have a question regarding the Eigenmietwert (or Rental income value). How would I go about finding this value? The sellers guide I have has for this says for the tax year 1999 Eigenmietwert is Fr. 14,417 for the. Will this still be valid today? The background to this question is that I want to see if my tax liability goes up or down.

Thanks in advance
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Old 14.08.2007, 08:47
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Re: House purchase in Aargau...please help

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Hi All,

Im about to buy a house in Aargau. I however have a question regarding the Eigenmietwert (or Rental income value). How would I go about finding this value? The sellers guide I have has for this says for the tax year 1999 Eigenmietwert is Fr. 14,417 for the. Will this still be valid today? The background to this question is that I want to see if my tax liability goes up or down.

Thanks in advance
All you need to do is get the house address and ask at the local Gemeinde. 14,417 seems to be a relatively realistic value for a house costing around 500K.
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Old 14.08.2007, 09:43
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Re: House purchase in Aargau...please help

This figure is good - mine is 26'000. Also over the years this figure will reduce.

You add it to your tax return on the income page less maintainance costs - usually a package (Pauchal) amount. The idea is that your mortgage interest tax relief more than outweights the addition of Eigenmieitwert. Both mortgage tax relief and Eigenmietwet are due to be scrapped, but very very slowly it seems...
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Old 14.08.2007, 13:06
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Re: House purchase in Aargau...please help

Cool thanks for the reply I have another question. The interest payments on my mortgage would be fully tax deductible and would be much higher than the Eigenmieitwert would I then be allowed to get away with this tax saving. For example if the interest on my mortgage is 24'000 a year and my Eigenmieitwert is 14'000 I am making a saving of 10'000 not forgetting deductions for maintenance and return on own capital. So lets say my tax situation changed in my favour and Im now saving 14k would I then be taxed on that saving or would that just be a good saving. Property sale value is 750K.
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Old 14.08.2007, 13:16
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Re: House purchase in Aargau...please help

You can't be taxed on a tax advantage! Though give then time...

It will simply reduce your taxable income.
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Old 14.08.2007, 13:54
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Re: House purchase in Aargau...please help

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Cool thanks for the reply I have another question. The interest payments on my mortgage would be fully tax deductible and would be much higher than the Eigenmieitwert would I then be allowed to get away with this tax saving. For example if the interest on my mortgage is 24'000 a year and my Eigenmieitwert is 14'000 I am making a saving of 10'000 not forgetting deductions for maintenance and return on own capital. So lets say my tax situation changed in my favour and Im now saving 14k would I then be taxed on that saving or would that just be a good saving. Property sale value is 750K.
Fully tax deductable now that is good old proper English. Here you have a taxable income effectively simply a figure that they will tax and dependent on how that figure is your percentage deduction will be calculated. So perhaps for 100K it is 9% ie 9000 and for 200K it is 18% ie 36000. Your net house purchase effect varies the net figure on which you will be taxed as simple as that. So before you would have taxable income of 100000 and paid 9000 and now it is only 90000 and pay 7650 (8.5%). Your saving is thus in real terms 1350.
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Old 14.08.2007, 14:26
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Re: House purchase in Aargau...please help

ok now I see how it works.
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Old 31.01.2017, 19:57
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Re: House purchase in Aargau...please help

I am updating an old thread because anyone who owns and lives in a house in canton Aargau may receive a notice that there is an increase in the Eigenmietwert. This was decided in November of 2015. The new value is retroactive to January 1 2016.

I think the letters only went out now as tax preparation time is approaching and the cantonal authorities wanted to be sure the new value was used.
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