Second Homes After the Tax Reform: Which Cantons Will Act?
From 2029, imputed rental value will also disappear for owner-occupied second homes. Cantons may introduce a special property tax on second homes instead.
In brief
The property tax on second homes is a new option for cantons from 2029. It is intended to help compensate for tax revenue losses when imputed rental value on owner-occupied second homes is no longer taxed. Tourism cantons with many holiday apartments are particularly in focus, including Graubünden, Valais and Ticino. Whether and how strongly owners will be affected depends on cantonal implementation.
What is meant by second homes after the tax reform?
In this context, a second home means a property that is not used as the main residence but is predominantly used by the owner. This includes holiday apartments, holiday houses, weekend homes or other residential properties used by owners for their own stays.
Until now, imputed rental value was also taken into account as income for owner-occupied second homes. With the system change from 2029, this taxation will disappear. Cantons with many second homes therefore face the question of how to compensate for potential tax revenue losses.
What applies from 2029?
From 1 January 2029, imputed rental value on owner-occupied residential property will be abolished. This affects not only primary residences but also owner-occupied second homes. At the same time, cantons receive the option to introduce a special property tax on predominantly owner-occupied second homes.
Which cantons will act?
Very likely in focus
Tourism cantons with many holiday apartments, high second-home shares and relevant tax revenue losses are likely to examine the property tax particularly closely.
Politically open
Not every canton will automatically act. Local revenues, property structure, political pressure and the burden on owners will be decisive.
Less affected
Cantons with few owner-occupied second homes or lower fiscal relevance may be more cautious or may decide not to introduce a new tax.
A detailed review is particularly likely in cantons with strong holiday-home markets. This mainly includes Graubünden, Valais and Ticino. Owners should also watch tourism-oriented regions in cantons such as Bern, Vaud, Uri, Schwyz, Obwalden, Nidwalden, Glarus and St. Gallen. However, the individual municipality or region can be just as important as the canton.
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 the abolition of imputed rental value on holiday homes may have a stronger impact | Lower if second homes play only a minor role |
| Political debate | Likely more intense because municipalities and local residents are directly affected | Rather lower if no major revenue losses are expected |
| Owner structure | Many non-resident owners possible | Greater focus on primary residences and ordinary residential use |
| Property prices | High holiday-home prices can make a tax politically more attractive | Less pressure to specifically tax second homes |
| Implementation | Property tax, assessment basis and exemptions must be carefully defined | No tax or a very cautious solution may be possible |
| Impact on buyers | Ongoing costs and return assumptions should be calculated particularly carefully | Tax risk may be lower, but still depends on the cantonal decision |
Step by step: How buyers should assess a second home from 2029
- Check the canton and municipality: How high is the second-home share and how tourism-oriented is the location?
- Clarify whether the canton is planning or discussing a property tax on second homes.
- Calculate scenarios with and without the new tax: purchase price, mortgage, ancillary costs, maintenance and use.
- Clarify whether the property will be predominantly owner-used, partly rented out or permanently rented.
- Check rules on second homes, tourist rental, permits and municipal regulations.
- Include long-term costs such as management, condominium ownership, renovations, energy and insurance.
- If financed with a mortgage, review how restricted mortgage interest deductions and a new property tax interact.
- Before buying, obtain tax advice in the canton where the property is located, not only in the canton of residence.
Assessment questions: What does the reform mean for my second home?
The following questions help owners, buyers and advisers assess the new situation from 2029.
Assessment questions on second homes after the tax reform
1. In which canton and municipality is the second home located?
2. Is the property predominantly owner-used or regularly rented out?
3. Is the canton planning a property tax on second homes?
4. How high could the assessment value and tax rate be?
5. Are there municipal or cantonal differences for holiday homes?
6. How does the previous imputed rental value compare with a possible new property tax?
7. Which deductions disappear from 2029 for owner-occupied residential property?
8. How do ongoing costs, return and affordability change?
9. Are there restrictions on tourist rental or second-home use?
10. Is the purchase still sensible over the long term with an additional property tax?Practical examples
Example 1: Holiday apartment in Graubünden
A buyer is interested in a holiday apartment in a well-known tourism municipality in Graubünden. Imputed rental value disappears from 2029, but the canton may examine a property tax. Before buying, the buyer therefore calculates not only mortgage and ancillary costs, but also a tax scenario for second homes.
Example 2: Second home in an urban environment
An owner has a small second home in a canton with a lower tourism profile. The pressure to introduce a property tax may be lower there. Nevertheless, the cantonal implementation remains open. Here too, it is worth reviewing future tax rules before renovating, selling or buying.
Checklist: Assessing a second home correctly after the tax reform
Frequently asked questions about second homes after the tax reform
Summary
The tax reform from 2029 will significantly change the calculation for second homes. Imputed rental value will also disappear for owner-occupied holiday apartments, but cantons may introduce a special property tax on predominantly owner-occupied second homes instead. Tourism cantons with many holiday apartments are particularly in focus, especially Graubünden, Valais and Ticino. Whether owners will be taxed more heavily, similarly or even less depends on cantonal implementation. Buyers should therefore always check the property canton, municipality, intended use and possible tax scenarios before purchasing a second home.