Second homes after the tax reform: Which cantons will act?
From 2029, the imputed rental value will also be abolished for owner-occupied second homes. Cantons will be able to introduce a special property tax on second homes.
Author: Nikita von Niederhäuser , UrbanHome real estate expert Updated on: · Reading time: approx. 9 minutes
What do second homes mean in the context of the tax reform?
In this context, a second home is a property that is not a primary residence and is mainly used by its owner.
These include holiday apartments, holiday homes, weekend homes and other residential properties that owners use for their own stays.
Until now, an imputed rental value has also been counted as taxable income for owner-occupied second homes.
This taxation will disappear with the system change in 2029. Cantons with many second homes therefore face the question of how to offset potential tax revenue losses.
The new property tax focuses on predominantly owner-occupied second homes. Different tax considerations apply to properties rented out permanently.
What changes from 2029?
The imputed rental value for owner-occupied residential property will be abolished on 1 January 2029.
This applies not only to primary residences but also to owner-occupied second homes.
At the same time, cantons will have the option of introducing a special property tax on predominantly owner-occupied second homes.
The new property tax is an option for cantons.
The taxable property, assessment basis, tax rate, exemptions and transitional rules may therefore differ from one canton to another.
Owners and buyers should therefore follow how their canton implements the reform before it enters into force.
Which cantons will act?
Not every canton will automatically introduce a property tax.
The issue is especially relevant in regions with a high proportion of second homes and large holiday-property markets.
Particularly in focus
Tourism cantons with many holiday homes, high second-home shares and significant potential tax losses are likely to examine a property tax particularly closely.
Politically undecided
Local revenue, the property market, political pressure and the burden on owners will influence the decision.
Less affected
Cantons with few owner-occupied second homes or limited fiscal impact may be more cautious or decide against a new tax.
Regions of particular interest
A closer examination is especially warranted in cantons with a strong holiday-home market.
These include in particular Graubünden, Valais and Ticino.
Owners should also watch tourist regions in cantons such as Bern, Vaud, Uri, Schwyz, Obwalden, Nidwalden, Glarus and St. Gallen.
What matters is often not only the canton but also the individual municipality or tourist region.
Tourism canton or urban canton: Where is the tax more likely?
| Aspect | Tourism canton with many second homes | Canton with few second homes |
|---|---|---|
| Fiscal pressure | Higher, because abolishing the imputed rental value on holiday homes could have a greater impact. | Lower if second homes play only a minor role. |
| Political debate | Likely more intense because municipalities and residents are directly affected. | Likely less intense if no major revenue losses are expected. |
| Ownership structure | Potentially many owners living elsewhere. | Greater focus on primary residences and normal residential use. |
| Property prices | High holiday-home prices may make such a tax more attractive politically. | Less pressure to tax second properties specifically. |
| Implementation | The property tax, its assessment basis and exemptions must be carefully defined. | No tax or a very limited solution is conceivable. |
| Impact on buyers | Ongoing costs and return assumptions should be calculated particularly carefully. | The tax risk may be lower but still depends on cantonal decisions. |
steps to assess a second home from 2029
Check the canton and municipality: What proportion of homes are second homes, and how tourism-oriented is the location?
Find out whether the canton is planning or discussing a property tax on second homes.
Calculate scenarios with and without a new tax: purchase price, mortgage, ancillary costs, maintenance and use.
Clarify whether the property is mainly owner-occupied, partly rented out or rented out permanently.
Check rules on second homes, tourist rentals, permits and municipal regulations.
Include property management, condominium ownership, renovations, energy and insurance in long-term costs.
If financing with a mortgage, check how restrictions on interest deductions interact with a possible property tax.
Seek tax advice in the canton where the property is located before buying, not only in your canton of residence.
What does the reform mean for my second home?
These questions help owners, buyers and advisers understand the new situation from 2029.
Questions about second homes after the tax reform 1. In which canton and municipality is the second home located? 2. Is the property mainly used by its owner or rented out regularly? 3. Is the canton planning a property tax on second homes? 4. How high could the assessed value and tax rate be? 5. Are there cantonal or municipal differences for holiday homes? 6. How does the current imputed rental value compare with a possible new property tax? 7. Which deductions for owner-occupied housing will disappear from 2029? 8. How will ongoing costs, returns and affordability change? 9. Are there restrictions on tourist rentals or second-home use? 10. Would purchasing still make sense in the long term with an additional property tax?
Two typical situations
Holiday apartment in a tourist municipality
A buyer is interested in a holiday apartment in a well-known tourist municipality in Graubünden.
The imputed rental value will disappear in 2029, but the canton could consider a property tax.
Before buying, the buyer therefore includes not only the mortgage and ancillary costs but also a possible tax scenario for second homes.
Second home outside a tourist region
An owner has a small second home in a canton less influenced by tourism.
The pressure to introduce a property tax may be lower there.
It is still uncertain how the canton will implement the reform. Here too, checking future tax rules before renovating, selling or buying is worthwhile.
Assessing a second home after the tax reform
Canton checked
Municipality checked
Second-home share assessed
Tourism location assessed
Possible property tax investigated
Assessment basis monitored
Possible tax rate considered
Tax situation in the property's canton checked
Owner occupation clarified
Partial rental assessed
Long-term rental distinguished
Tourist use checked
Purchase price recalculated
Ongoing costs checked
Mortgage and affordability checked
Maintenance considered
Rental rules checked
Permits checked
Municipal regulations checked
Tax advice obtained
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Frequently asked questions about second homes after the tax reform
The key answers explained concisely.
From 2029, the imputed rental value will also disappear for owner-occupied second homes. At the same time, cantons will be able to introduce a special property tax on predominantly owner-occupied second homes.
Tourism cantons and regions with many second homes, such as Graubünden, Valais and Ticino, are especially relevant. Other cantons with tourist municipalities may also consider the new tax.
No. The new rules give cantons the option. Each canton must decide whether to introduce such a tax and how to design it.
The tax would primarily affect owners of predominantly owner-occupied second properties, such as holiday apartments or holiday houses that are not rented out permanently.
Before buying, purchasers should check whether the canton plans a property tax, how high the ongoing costs might be and whether rental, personal use and financing make long-term sense together.
That depends on the property, canton, price, use and financing. Anyone considering a second home should monitor cantonal tax developments and compare scenarios with and without a property tax.
The focus is on predominantly owner-occupied second homes. Permanently rented-out properties are subject to different tax considerations, as rental income remains taxable and maintenance deductions may still be relevant.
The legal framework lies with the canton. Depending on its design, municipalities may nevertheless be affected politically or financially. Buyers should therefore check both the canton and the municipality.
This is uncertain. An additional property tax could increase ongoing costs and reduce willingness to pay. But location, scarcity, permitted uses and demand will remain decisive in popular holiday regions.
Existing owners should monitor whether the canton where their property is located is preparing a property tax. They should also reassess use, financing, maintenance, letting and future tax liabilities.
These cantons have many tourist regions and a high number of second properties. The end of imputed rental value taxation on holiday homes could therefore have a particularly significant fiscal impact there.
Buyers should assess a second home not only by price and location but also by future tax burden, management, rental potential, renovation needs and cantonal law.
The tax reform changes the calculation for second homes
From 2029, the imputed rental value will also disappear for owner-occupied holiday homes.
At the same time, cantons will be able to introduce a special property tax on predominantly owner-occupied second homes.
Tourism cantons with many holiday properties, especially Graubünden, Valais and Ticino, are particularly in focus.
Whether owners pay more, the same or less will depend on cantonal implementation.
Before buying a second home, purchasers should therefore always check the canton and municipality, intended use and possible tax scenarios.
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