How do I pay tax on my holiday home, and what changes when imputed rental value is abolished?

What is taxable today?

All income from renting out property is taxable, including income from your holiday home (Art. 21 para. 1 let. a FDTA). If you use the property yourself, you also pay tax on its imputed rental value until the end of 2028 (Art. 21 para. 1 let. b FDTA). If you use the property yourself for part of the time and rent it out for the rest, both parts are combined. Your canton’s guidance explains how it divides the imputed rental value in this case; if in doubt, ask the tax office.

You can deduct maintenance costs, the renovation of a newly purchased property, insurance premiums and third-party management (Art. 32 para. 2 FDTA). You can also choose a flat-rate deduction each year instead of claiming your actual costs (Art. 32 para. 4 FDTA). For federal direct tax, it is:

• 10 per cent of gross rental income if the building is up to ten years old at the start of the tax period,
• 20 per cent if it is more than ten years old (Art. 5 para. 2 of the Ordinance on Property Costs).
• You cannot claim the flat-rate deduction if third parties use the property mainly for business purposes (Art. 5 para. 3).

Cantons set their own flat rates and rules for cantonal taxes. Your canton’s guidance explains how it treats platform fees, cleaning and other rental costs.

If the property is in a different canton from your place of residence, you are liable for tax there on account of economic affiliation (Art. 4 para. 1 THA). Expect to file a tax return for the property there.

What changes from 1 January 2029?

The people and the cantons approved the abolition of imputed rental value on 28 September 2025. The Federal Council set 1 January 2029 as the date the reform comes into force. Here’s what it means for holiday homes:

How the federal and cantonal authorities will divide a property that you use yourself for part of the time and rent out for the rest has not yet been clarified in detail ahead of the reform. We haven’t found any guidance on this. Even so, start keeping a record of how you use the property.

The new tax on second homes

Under the reform, cantons can levy a special tax on second homes used predominantly by their owners once imputed rental value is abolished. The tax is intended to make up for lost revenue, especially in tourism cantons. Owners who rent out their property predominantly are unlikely to be affected. The cantons will define what «predominantly» means.

• Graubünden plans to introduce a special property tax from 2029, set at 1.5 per mille of the wealth tax value, on second homes used predominantly by their owners. Municipalities can already levy a property tax of up to 2 per mille.
• Valais: It is not yet clear whether the canton will introduce such a tax.
• Bern: Municipalities can levy a property tax of up to 1.5 per mille of the assessed value and a second-home tax.
• Vaud: Municipalities can levy a charge on second homes, paid by the owner; Montreux is one example.
• Fribourg: The second-home flat rate for tourist tax assumes 150 nights and applies to owners even when they use the property themselves.

What does this mean for you?

1. Each year, record rental income, nights rented out and your own use, separately for each channel.
2. Keep receipts for maintenance, insurance, management and cleaning. Compare the flat-rate deduction with your actual costs each year.
3. If the property is in another canton, expect to file a tax return there.
4. Keep an eye on what your canton decides about the special tax on second homes before 2029.
5. If your turnover reaches CHF 100'000 a year, check VAT.

A short summary, not legal advice. The linked official source and your municipality’s rules prevail.