Linkedin
Facebook
Email
more
While the question of rental value has been the subject of political debate in Switzerland for several years, parliamentary initiative 17.400 seems to be on the verge of a long-awaited compromise. As a reminder, this initiative aims to reform the system for taxing primary residences by eliminating the taxation of rental value, while preserving the stability of tax revenues by avoiding disparities between tenants and owners, in accordance with the Swiss constitutional law.
The recent vote by the National Council on 14 June 2023, which marks the overall approval of the project, is a major step forward. The two chambers of the Swiss Parliament have reached a consensus on several key aspects, as listed below. However, there are still some major disagreements over the scope of the reform, not to mention the possibility of a referendum in the sectors affected by the changes. We are thinking in particular of the construction sector, which risks seeing a drastic reduction in renovation projects as a result of the partial or total abolition of housing maintenance costs in Switzerland.
This federal law is not expected to come into force until 1 January 2025 at the earliest.
Despite the above-mentioned agreements, disagreements remain between the Council of States and the National Council, in particular on the following points.
The next stages in Parliament promise to be rich in debate and decisions on this issue! Discussions in the National Council Committee are currently in full swing. We look forward to keeping you updated on the progress of these deliberations.
For more information on this subject, our RSM experts will be happy to help you.
