What is the imputed rental value?

he imputed rental value is added to the taxable income of owners who live in their property. It is an income in kind, as the owner does not actually receive any additional income but still saves money by living in the property.

To which correspond the imputed rental value and how is it calculated?

The imputed rental value is the amount of rent that the owner could have received if the property was offered for rent.

According to the Federal Court, the rental value corresponds to at least 60% of the rent a possible tenant would have had to pay. However, the amount is set by the tax authorities and therefore differs from canton to canton. In any case, many factors influence the amount of the imputed rental value, including the living area, the type of property, the exteriors, etc.

What is the purpose of the imputed rental value?

The rental value creates equality between tenants and owners in terms of taxation. Homeowners can deduct various expenses such as the cost of maintenance work or the interest on a mortgage from their taxes. Tenants, on the other hand, can not.

Thus, the rental value, acting as an additional income, ensures an almost equal level of tax burden between owners and tenants.