Why renovating now can save you thousands of pounds
In a few years’ time, a major tax reform will revolutionize the way Swiss property owners can deduct the cost of renovation work.
The abolition of rental value, scheduled for 2028, will also mean the end of tax deductions for most work carried out on primary residences.
In concrete terms, renovation work carried out today can still significantly reduce your tax burden, whereas the same work carried out after 2028 will no longer be eligible for any deductions.
This is a unique window of opportunity to plan ahead for your renovation projects.
Understanding the reform in a few words
Currently, owner-occupiers must declare a rental value: a notional income corresponding to the rent they would ‘pay’ if they rented out their own property. In return, they can deduct:
- Mortgage interest rates
- Maintenance and renovation costs (facade refurbishment, insulation, painting, energy efficiency improvements, etc.)
- Sometimes, expenditure related to environmental protection or energy saving
From 2028 (the estimated date of the reform’s entry into force), rental value will be abolished at federal level, and with it most of these tax deductions for owner-occupiers. Some cantons may retain limited deductions for energy-efficient renovations, but overall, the tax benefits will disappear.
A concrete example: potential tax savings of CHF 36,000
Let us imagine a façade renovation costing CHF 120,000, carried out in 2026.
The owner is in a marginal tax bracket of 30% (federal + cantonal combined).
Today:
Cost of work: CHF 120,000
Possible tax deduction: CHF 120,000
Estimated tax savings: 120,000 × 30% = CHF 36,000
After 2028:
Cost of work: CHF 120,000
Tax deduction: CHF 0
Tax savings: CHF 0
Difference: CHF 36,000 in tax benefits lost if renovation is postponed until after the reform.
Which tasks should be prioritised before the reform?
To maximise tax benefits, certain types of projects are particularly worth planning ahead for:
1. Perimeter and energy insulation
Work that is now very often fully tax-deductible
Also helps to reduce heating costs in the long term
Often supported by regional subsidies
2. Façade renovations
Aesthetic and technical refurbishment
Very common for condominiums and detached houses
3. Interior/exterior painting & plastering
Standard deductible maintenance
Ideal to combine with other work to optimise taxation in the same year
4. Complete renovations
For older properties or those undergoing conversion, launching a comprehensive renovation project before 2028 can generate substantial tax savings.
Posse, your renovation partner
For over 40 years, Groupe Posse has been assisting homeowners in French-speaking Switzerland with their plastering, painting and insulation projects.
In light of the upcoming reform, we are offering:
- Free quotations and estimates of potential savings
- Experienced local teams for all your renovation work
Let us plan your project together in the best possible way.
Contact us today.
Do not miss this historic opportunity.
The work you carry out over the next few years could save you tens of thousands of pounds.
