Abolition of rental value: the impact for tenants

Switzerland has only 36% of owners, compared to abolition rental value: impact tenants 58% of tenants, according to figures The Federal Statistics Office. However, Those who think that the vote on the abolition of the rental value does not concern them are mistaken. In addition, If the reform is adopted, there will also be consequences for them.

First of all, we must remember what rental value is. Therefore, It represents the theoretical value of annual rent that a property could generate if it was rented. Furthermore, The amount, fixed by the cantons, must be added to the taxable income of the owners. Furthermore, The idea is as follows: as they do not pay rent, they have economic advantages compared to the tenants. Meanwhile, It is this inequality that the rental value must compensate.

But the owners also have charges that tenants do not have. In addition, To counterbalance this reality. abolition rental value: impact tenants Moreover, the current system allows owners to deduce the maintenance costs of their accommodation, but also the debtor interests, namely the interests of the debt they had to contract to buy it. In addition, If The reform is acceptedthese two deductions would be deleted.

The effects of the removal of the rental value

Now let’s start that this reform is accepted on September 28. Who would be a winner, who would be a loser? In front of the mediaKarin Keller-Sutter, Minister of Finance, repeated how difficult it was to answer this question. The rental value is different depending on the cantons. The purchase price of goods, and therefore debts to be contract, also varies. As for the interest rate, it can deeply modify the effects of the reform, if it increases or decreases. And as reality is not the abolition rental value: impact tenants same for those who buy new good. those who renovate an old one, each case is special.

One element can however be retained as a truth: with the new system. people with little indebted and those who must not do work would pay less taxes in all cases.

A figure can also be advanced: the shortfall tax. According to The voting brochure of the Federal Council, and taking into account current interest rates, it is 1.8 billion for public authorities. It will therefore be necessary to increase taxes. The tenants will therefore go to the checkout.

What to vote, right? Not necessarily. The cantons could introduce a tax on second homes to fill the shortfall. And if mortgage rates were to go up. public authorities could even record abolition rental value: impact tenants more tax revenue with – possibly – tax cuts.

The tenant is sometimes a future owner

Another element plays. an important role – but by ricochet – for tenants: the deletion of deductions for maintenance costs. If the yes prevails. the private donors will undoubtedly be many to carry out work before the entry into force of the reform, in order to take advantage of the advantages of the old system. Which will cause a boom in the construction sector. What improve the housing rented at first.

Then it gets worse. The donors. especially the most indebted, will hesitate before renovating, which will lead to a stop for the construction sector, and therefore a long -term deterioration of the housing stock. Even if the reform provides for cantonal exceptions for certain energy renovations.

The fact remains that the debt rate will also play a role there. For less indebted donors, their tax burden will be reduced. Less money for taxes could also mean more liquidity to invest to maintain a property.

Last but not least. The reform makes a flower in the first-time buyer. And that, the tenants must also remember during the vote. Because a tenant who helmets today could become a future owner who saves money tomorrow. The reform provides for the possibility of deducting the debtor interests for first-time buyers During the first ten years.

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