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Rental value: worried real estate:
Real estate taxation
The abolition of the rental value worries real estate professionals – Rental value: worried real estate
If this tax specificity was abolished in votes on September 28. For example, they fear a chain reaction for the whole Swiss real estate economy.
Posted today at 8:30 am
Slowness of construction. Consequently, rise in prices, financing complications, the reform would only be beneficial for a small minority, believe certain representatives of the sector.
Yvain Genevay
- Swiss particularity, the rental value plays its future at the bottom of the ballot boxes this fall.
- In the event of abolition, specialists predict that the rental value: worried real estate whole Swiss real estate economy will be affected.
- Some call for the implementation of transitional measures.
On December 20. For example, 2024, the federal chambers voted to remove the rental value and the creation in place of a property tax on second homes. In addition, It is on this proposal to modify the taxation of housing that Swiss voters are called upon to vote. Moreover, on September 28.
Small reminder. Therefore, first: the rental value corresponds to the rent that the owner of the property he occupies could theoretically perceive. Similarly, It is calculated on the basis of a percentage of the rent on the market for comparable properties. Meanwhile, It is a taxable fictitious income. For example, In return. For example, certain costs are deductible from the income base subject to tax, in particular mortgage interest, maintenance costs rental value: worried real estate and energy renovations.
More than a hundred years old, this system is typically Swiss. Therefore, But this specificity continues to be criticized. Therefore, It is accused of its ineffectiveness in guaranteeing tax equity between tenants. owners, but also its perverse effects, by promoting over -indebtedness and the owners, according to its detractors at least.
Wide opposition to tax reform – Rental value: worried real estate
The defense organizations of owners. those of tenants (Asloca First of all), as well as real estate professionals, all call for a reform, but not this one. Which include two components. one relating to the abolition of the rental value, the other on the implementation of a tax on second homes to compensate for the loss of tax revenue, which supposes a constitutional revision. Both or nothing.
All too, rental value: worried real estate beyond their differences in views, agree that “the proposed reform would be even worse than the existing system”. A short majority of Swiss (53%) are said to be in favor of the abolition of rental value. according to a MoneyPark survey published last April.
A brake for construction. therefore the real estate market – Rental value: worried real estate
“As a developer, I fear that this reform will slow down construction or transformation projects,” says Emanuel von Graffenried, director and partner of Bernard Nicod Conseils. Tax uncertainty may cool investors and complicate financial planning. In a vague context. promoters and owners often prefer to wait, which can lead to a temporary slowdown in the market. ”
Frédéric Dovat. secretary general of the Swiss Union of Real Estate Professionals (USPI Switzerland), warns: if this reform is adopted, it will affect all economic rental value: worried real estate players; The owners of main or secondary residence, but also entrepreneurs who are for the benefit of credits and who will no longer be able to deduct passive interests if they do not own a return building, as well as the pension funds and institutional investors who will no longer be able to deduct energy sanitation at the federal level.
“Households affected”
The wait -and -seeing. even the withdrawal of these sector motor forces “would slow down the dynamics of the real estate market and strengthen the dwellings of housing”, worries Emanuel von Graffenried, with obvious repercussions on prices, rarity obliges. Result: “In the current state of the text, the reform would prioritize modest households and average income,” he says.
The entire sector would be affected. predicts Frédéric Dovat: “Little encouraged to initiate maintenance costs rental value: worried real estate or energy sanitation work, the owners will ask the construction companies less who will have to bear a drop in activities, which could promote the use of workers who will not be declared. Ultimately, it is the whole ecosystem of building craftsmen (parquetists, kitchen designers, painters, etc.) that will be penalized by a loser-perdant game. ”
“Promoted black work”
The manager adds: “The end of tax deductions will not promote home ownership. but will necessarily promote black work by reducing work for construction companies.”
Dressing of construction. price increase, financing complications, The reform would only be beneficial for a small minorityunderlines Frédéric Dovat: “Only the owners who have financed their housing in cash or cushioning all their mortgage debt, whose building is new and meets the standards Minergie or is efficient energetically, would find rental value: worried real estate their account in this wobbly reform. This would not be the case for retirees who. even if they have amortized their debt, will no longer be able to deduct the costs of maintenance and energy sanitation of their property, often noted F or G at the level of the CECB; Therefore, they will find to find buyers. Except to sacrifice the price… ”
Drop in the mortgage market in Switzerland
According to Patrice Choffat. director general of the Zurich real estate brokerage firm Bestag, a majority of owners will be pushed “to reimburse their mortgage and to renounce renovation work which will no longer be deductible from taxes. With a major impact for the mass of mortgages in Switzerland. but also on the state of many goods and, finally, on all the small trades of the building. ”
Lukas Vogt. CEO of the Moneypark mortgage financing specialist, plans that “the Swiss mortgage market would lose around 50 to 150 billion francs in volume over the next five years”.
A tax reform against the subject of climatic issues
In addition. deplores Frédéric Dovat, “the abolition of deductions relating to energy sanitation work at the federal level would be in total contradiction with the incentives/obligations to clean up imposed on owners in connection with the objectives of carbon neutrality. This reform is against the fight against global warming. ”
“Pure and simple abolition of rental value, without sufficient compensatory measures, risks upsetting the tax balance of housing. It is a turning point with major repercussions for developers and the entire real estate sector, ”concludes Emanuel von Graffenried. This pleads for “a pragmatic rental value: worried real estate approach. with clear transitional measures, fair tax compensations and a long-term vision for the Swiss real estate market”-
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