Hello everybody

I am going to buy a house in Switzerland. I was surprised that i have to calculate so called EIGENMIETWERT.
Could somebody explain me what is this and how to calculate it?

Thank you in advance.
All the best,
Bedeinha

Points: 10

    Hi Bedeinha

    This is one of a tax peculiarity of Swiss tax law. It could be described as an a fictitious income from your property. This income has to be taxed even if you live in your home yourself.
    Frankly speaking you have to take into account the cantonal rules for the calculations. There are a lot of differences.
    In simple terms, you have to choose Canton where the property will be purchased. And only then you have to follow the local tax laws.

    Be a good boy and Santa will bring you a present. 😄
    Best regards,
    Santa

    Points: 80
    • hat auf diesen Beitrag geantwortet.

      Thank you SantaMidnight for your clarifications.
      Do I understand correctly that I have to calculate this Eigenmietwert for all private property incl. cars?

      Thank you in advance.
      All the best,
      Bedeinha

      Points: 10
      • hat auf diesen Beitrag geantwortet.

        Hi Bedeinha

        No, you are wrong. Eigenmietwert has to be calculated just for houses, flats etc.
        The rental value of other private property (e.g. cars,) is disregarded for tax purposes.

        Don`t forget about Christmas 🙂
        Best regards,
        Santa

        Points: 80
        • hat auf diesen Beitrag geantwortet.
        • Bedeinha gefällt das

          Wow
          Sounds good. Thank you SantaMidnight.
          What about my flat in Argentina? Hope I should`t calculate this fictitious income from my property abroad?
          It's pointless.

          All the best
          Bedeinha

          Points: 10
          • hat auf diesen Beitrag geantwortet.

            Hi Bedeinha

            Foreign properties and the income from them must be declared in the Swiss tax return. They are not taxed directly in Switzerland, but they are decisive for determining the progressive tax rate.

            E.g. You own a flat in Argentina with market value ARS 10 000 000 and you have to fulfill your tax declaration in Freiburg. Exchange rate as of 31.12.2019 ARS/CHF = 0.016173.
            So the market value in CHF = 0.016173 x 10 000 000 = 161 730
            Eigenmiewert in Freiburg = market value x 2.5 %, CHF 161 730 x 2.5 % =CHF 4 043

            Be a good boy and Santa will bring you a present. 😄
            Best regards,
            Santa

            Points: 80
            • hat auf diesen Beitrag geantwortet.
            • Bedeinha gefällt das
              6 Tage später

              Thank you SantaMidnight

              To tell the truth, this is bad news. Is this calculation similar for Zurich?

              Thank you in advance
              Bedeinha

              Points: 10
              • hat auf diesen Beitrag geantwortet.

                Hi Bedeinha

                No, according to cantonal rule Eigenmietwert (EMW) should be calculated as follows:
                EMW = market value x 4.25% = CHF 161 730 x 4.25 % =CHF 6 874

                Be a good boy and Santa will bring you a present. 😄
                Best regards,
                Santa

                Points: 80
                  9 Tage später

                  Hi everybody
                  I’d like to confirm my understanding about the calculation of overseas property market value used as a base for Eigenmiewert calculation. As I’ve understood from the example above, we only need to convert its market value to CHF using exchange rate per 31.12.20XX. But it seems to me I’ve heard that in some cantons the price could be reduced by some percentage, couldn’t it?
                  Could you please tell me if it’s applicable in Aargau?
                  Thank you in advance.

                  • hat auf diesen Beitrag geantwortet.

                    Good day NoticeIss
                    Yes, you are right. In some cantons incl. Aargau the market value of foreign properties can be set at a level lower than 100%. In Aargau the tax value of your property abroad is 80% of its current market value.
                    Best wishes
                    Lukelt

                    Points: 5
                      20 Tage später

                      Hey guys

                      Do I have to declare and to pay taxes for Eigenmietwert , if I own a part of apartment (1/3) ? My parents still live in this apartment. Can I tell I'm renting it to them?
                      Thanks
                      StrongGold


                        13 Tage später

                        StrongGold
                        Of course you can rent your apartment on your parents, but in this case you should declare these rental payments as income. Or you can estimate the Eigenmietwert and declare the part of it (1/3).
                        Best wishes
                        Lukelt

                        Points: 5
                          ein Monat später

                          Hello guys

                          I have a question about private housing as a business expense for self-employment.
                          Can I deduct a part of the expenses for business room in my private declaration?
                          If yes, how can I do this?

                          Thank you for your help in advance.
                          Spoonlich

                          Points: 5
                          • hat auf diesen Beitrag geantwortet.
                            24 Tage später

                            Hello

                            I must say you Swiss are amazing. I have never seen anything so unnecessarily complicated this in my life. Wasn't this whole Eigenmietwert nonsense supposed to be abolished anyway because of some national referendum?? Apparently not. If I rent my house abroad do I have to calculate this eigenmietwert?

                            Thanks in advance.
                            Regards
                            Di_Maria

                            Points: 5
                            • hat auf diesen Beitrag geantwortet.

                              Ho ho ho Di_Maria

                              Why are you in a bad mood? Christmas is coming, and Santa has set up a lot of gifts for you 😁
                              In this case, you have to declare your rental income.

                              Be a good boy and Santa will bring you a present. 😄
                              Best regards,
                              Santa

                              Points: 80
                                6 Monate später
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