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Abolishing rental tax is huge. What does that do for affordability?
by mulmen 1y ago
Abolishing rental tax is huge. What does that do for affordability?
- benbojangles 1y agomakes swiss landlords richer. Foreign nationals cannot own rental homes.
- DougN7 1y agoCan you go into more detail?
- config_yml 1y agoThis only affects homeowners who live in their own property, not landlords. If you earn rent on your property, you will still pay income tax on it.
- grothoff 1y agoNot quite. If you reside in Switzerland, you can own rental homes. Just foreign non-residents cannot buy.
- YakBizzarro 1y agoNot at all, it depends on the residence permit. With a C permit you can buy and rent properties, while with B you can buy only your own home
- m101 1y agoThe price of houses has just gone up because they have removed a real estate tax. Simple, and short sighted. The taxes need to be raised from somewhere so now let's see what convoluted and complex schemes they come up with to do that.
- brainwad 1y agoNot much. They are moving from a regime where owner-occupier mortgage interest is deductible but you have to pay income tax on the imputed rental value of your owner-occupied home, to one where you don't pay the tax but also can't take the deduction. For most Swiss people, who rent, it doesn't directly affect them. And even for most owner-occupiers, they never pay off their mortgages, and so the two effects currently cancel out. It's mostly a handout to rich people who can pay off a house (or inherited one).
- jeffbee 1y agoDestroys it. The change will immediately raise property prices 5-10%. The only beneficiaries are those who own property today. It becomes harder to buy property, while people who own property free and clear get a huge tax benefit and only lose a tax deduction they weren't using. Essentially, it is generational warfare in the style of Prop. 13 in California.