Will there be a renovation wave before 2029?
With the abolition of imputed rental value from 2029, many existing tax deductions for owner-occupied homes will also disappear. This could bring forward renovations, maintenance work and energy-efficiency upgrades.
Author: Nikita von Niederhäuser , UrbanHome Real Estate Expert Updated on: · Reading time: approx. 9 minutes
What does a renovation wave before 2029 mean?
A renovation wave would mean that many homeowners carry out renovations, maintenance or energy-efficiency improvements before the change in the residential property tax system.
This is particularly relevant to owner-occupied houses and apartments where certain maintenance expenses have previously been tax-deductible.
It does not mean that every home will be renovated by 2029. Selective acceleration is more likely: owners already planning window replacements, new heating, roof repairs or major maintenance may reassess the timing.
- Roof and facade
- Windows
- Heating replacement
- Thermal insulation
- Photovoltaik
- Pipes and services
- Kitchen and bathroom
What changes from 2029?
From 1 January 2029, imputed rental value will be abolished for owner-occupied residential property.
At the same time, the deduction for property maintenance expenses on owner-occupied homes will be abolished.
For direct federal tax, the previous deductions for investments in energy saving and environmental protection will also be abolished.
Cantons may continue to allow certain energy-saving and environmental deductions for a limited period. The rules from 2029 may therefore differ between cantons.
Before 2029, some maintenance or energy measures may have different tax consequences than after the change of system.
The actual impact depends on the canton, the type of work and the owner's individual tax situation.
A possible tax deduction alone is not a good reason to bring forward technically unnecessary or poorly planned renovation work.
Why renovations could be brought forward
The change in the system may affect when already planned work is carried out.
The tax effect is only one of several factors.
Tax deductions
Value-preserving maintenance may be treated differently for tax purposes until the change of system. This can influence the timing of already planned work.
Energy upgrades
Heating, insulation, windows and photovoltaic installations are often planned well in advance. Tax rules and subsidy programmes may affect their timing.
Purchase decisions
Buyers of older properties may need to calculate future refurbishment costs more conservatively once previous deductions disappear.
Why a broad renovation wave is still uncertain
Contractors and specialist planners have limited capacity.
Major projects may require building permits, energy advice, condominium owners' resolutions or longer delivery times.
If demand increases sharply at the same time, prices and waiting times may rise.
Selective acceleration is therefore more likely than an automatic, nationwide wave of renovations.
Renovate before or after 2029?
| Aspect | Renovation before 2029 | Renovation from 2029 |
|---|---|---|
| Tax deductions | Maintenance and certain energy improvements may still be relevant for tax purposes depending on the circumstances. | The general maintenance deduction for owner-occupied homes will be abolished. |
| Planning | Time pressure is possible because quotes, permits and work need to be coordinated before 2029. | More time for technical planning, but a different tax situation. |
| Costs | High demand may push up prices and waiting times. | Less tax-driven urgency, but construction and energy costs remain uncertain. |
| Financing | Review mortgages, liquidity and tax effects together. | Financing and technical benefits become more important. |
| Energy renovation | Check current subsidies and tax regulations early. | Cantons may temporarily retain some energy-related deductions; rules may differ. |
| Buying an older property | Renovation needs may be treated differently for tax purposes until the change of system. | Calculate purchase price and renovation budget conservatively without the previous general maintenance deduction. |
steps to assess a renovation before 2029
Assess the need for refurbishment realistically: roof, facade, windows, heating, pipes, kitchen, bathroom and energy efficiency.
Distinguish between value-preserving maintenance, value-enhancing improvements and energy measures.
Review current tax deductions and cantonal rules with a specialist.
Check subsidy programmes for energy efficiency, heating, insulation or solar installations at an early stage.
Request quotes and verify the availability of contractors, planners and energy consultants.
Involve permit authorities, condominium owners' associations and neighbours in good time.
Calculate financing, mortgage, liquidity and tax effects together.
Do not renovate solely for tax reasons: prioritise technical necessity and long-term benefits.
Should I renovate before 2029?
The following questions help owners, buyers and advisers assess the right time.
Review questions for renovations before 2029 1. Which maintenance projects will be necessary anyway in the next five years? 2. Will the work preserve value, increase value or improve energy efficiency? 3. Which deductions currently apply in my canton? 4. Which deductions for owner-occupied homes will disappear from 2029? 5. Are subsidies available for heating, insulation, windows, solar or energy advice? 6. Can planning, permits and work realistically be completed by the end of 2028? 7. Are sufficient equity and financing options available? 8. Will the renovation lower energy costs or improve comfort? 9. Could rising demand and a shortage of contractors increase costs? 10. Does the renovation make long-term sense even without a tax benefit?
Real-life examples
Old heating and average insulation
A family owns a detached house with an old oil-fired heating system and average insulation.
The heating system will need replacing in the next few years anyway.
Before 2029, the family considers combining a heat pump, insulation and new windows so that technical needs, subsidies and tax effects fit together.
Bathroom, kitchen and floors
A couple is planning a major renovation of their bathroom, kitchen and flooring.
Some of the work preserves the property's value, while other improvements increase comfort and value.
Before deciding, the couple has the current tax treatment checked and assesses which work would be better carried out later for technical reasons.
Plan a renovation before 2029
Technical refurbishment needs assessed
Roof and facade checked
Windows checked
Heating checked
Value preservation and enhancement distinguished
Cantonal tax rules clarified
Current deductions checked
Rules from 2029 taken into account
Subsidies checked
Heat pump assessed
Insulation and windows checked
Photovoltaics assessed
Quotes obtained
Schedule prepared
Contractor availability checked
Permits clarified
Financing planned
Liquidity checked
Mortgage considered
Tax advice obtained
Condominium resolutions clarified
Renewal fund checked
Cost allocation clarified
Shared building elements considered
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Sources on residential property taxation
Information on the effective date and tax changes is based on publications by the Federal Council, the Federal Department of Finance and the Federal Tax Administration.
Frequently asked questions about a possible renovation wave before 2029
The most important answers explained concisely.
Because the abolition of imputed rental value for owner-occupied homes also removes the general maintenance deduction. Owners already planning maintenance, renovation or energy measures may reconsider the timing.
It is not certain. Bringing projects forward is possible, but any widespread renovation wave depends on contractor capacity, financing costs, subsidies, permits, material prices and cantonal tax rules.
Typical examples include roofs, facades, windows, heating, bathrooms, kitchens, pipes, thermal insulation, photovoltaics, heat pumps and major value-preserving maintenance.
No. Tax rules distinguish value-preserving maintenance, value-enhancing investment and energy measures. The exact treatment depends on federal law, cantonal law and the particular measure.
Buyers should examine the condition of a property carefully. A home requiring major maintenance may be assessed differently for tax purposes before 2029 than after the change of system.
No. Tax considerations matter, but renovations should also make technical, financial and long-term sense. Large projects should be coordinated with tax and energy advisers and financial planning.
Energy upgrades such as insulation, window replacement, heat pumps and solar systems may be particularly important because they often involve substantial investment and may qualify for subsidy programmes.
For rented or leased properties, maintenance deductions generally remain available because rental or lease income continues to be taxed. The incentive to bring work forward therefore differs from owner-occupied homes.
That is possible if many homeowners request quotes or start projects simultaneously. Waiting times may occur especially for energy advice, heating replacement, insulation, windows and planning.
In condominium ownership, many renovations affect shared parts such as roofs, facades, windows and heating. Decisions, allocation of costs, renewal funds and schedules therefore need to be agreed early.
That depends on the project. For energy renovations, subsidies, energy savings, tax effects and investment costs together can matter more than a single deduction. A full cost-benefit assessment is useful.
Buyers should carefully assess renovation needs, tax effects, budgets and timing. Properties needing work may present opportunities, but from 2029 calculations should be more cautious when previous deductions disappear.
Bringing renovations forward is possible – rushing them is not sensible
Before 2029, Switzerland may see noticeable acceleration of renovations.
The reason is the change in property taxation: imputed rental value will disappear, while the general maintenance deduction for owner-occupied homes will be abolished.
That does not automatically mean a nationwide wave of renovations.
The decisive factors remain technical necessity, tax impact, financing, cantonal rules, subsidies and the availability of specialists.
Owners and buyers should therefore not act solely because of potential tax savings, but plan early, compare quotes and assess their personal tax situation.
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