07 September 2026

Swiss Individual Taxation: Implementation Not Until 2032

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What the Swiss Individual Taxation and the new timeline means for those affected in the context of the pending political initiative and the abolition of the notional rental income tax.

  • Sven Kälin

    Tax & Legal Partner

Switzerland has adopted Individual Taxation, which, according to the Federal Council, is set to take effect on January 1, 2032. Under this system, each individual will be taxed as a separate taxpayer, regardless of marital status, which will require extensive changes at the federal, cantonal, and municipal tax levels. At the same time, there is uncertainty due to the upcoming vote on the pending “Mitte” initiative and the abolition of the notional rental income tax from 2029 onward.

The “Mitte” initiative, which will be put to a vote in November 2026, calls for joint taxation of married couples for federal direct tax purposes and could thus conflict with individual taxation. This could lead to a two-tiered tax system, the compatibility of which remains unclear and is influencing the political debate.

Starting in 2029, the notional rental income tax for owner-occupied residential property will be abolished; at the same time, deductions for maintenance costs will be eliminated, and interest on debt will only be deductible to a limited extent. This raises questions about financing that should be considered in the context of future Individual Taxation to avoid tax disadvantages.

For affected taxpayers, the timeline adopted by the Federal Council essentially means the following:

  1. Through the 2031 tax year, there will be no fundamental changes to the joint taxation of married couples.

  2. Until the vote on the pending political initiative in November, it is difficult to assess with certainty how Swiss Individual Taxation will ultimately affect tax returns and tax assessments.

  3. Decisions related to the abolition of the imputed rental value should also be reviewed for their compatibility with the future individual taxation system.
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