Abolition of Imputed Rental Value in Switzerland: A New Era for the Engadin Market

A Turning Point for Owners and Buyers

On September 28, 2025, Swiss voters approved a historic tax reform: the abolition of imputed rental value. By 2027/28, this outdated system will be replaced by a transparent and simplified proportional property tax. For the Engadin - especially St. Moritz - this is not just a fiscal change, but a shift that redefines real estate investment value.

What is the imputed Rental Value?

Previously, homeowners were taxed as if they were earning rental income from their own home - a fictional income with real tax consequences. This disproportionately affected debt-free property owners, leading to criticism and calls for reform.

Example: A CHF 2 Million Home in St. Moritz

Currently, the owner pays about CHF 16,250 per year in imputed rental tax. Under the new flat tax system (0.3%), the owner will pay approximately CHF 6,000 – saving over CHF 10,000 annually.

Impact of the Reform: With and Without a Mortgage

Currently, mortgage holders benefit from tax deductions, while those who own their property outright pay more. Under the new reform, this discrepancy will disappear, everyone will be treated equally. Here’s the impact for a CHF 2 million property:

What This Means for the Market

• All owners taxed equally - no more advantage through mortgages

• Renovated homes increase in value (no more renovation deductions)

• Foreign buyers with capital will benefit the most

• Luxury demand will rise, especially in key destinations

• Municipalities like St. Moritz remain financially stable

Timeline of the Reform

1. 2025 – Nationwide vote passed

2. 2026 – Last year for renovation tax deductions

3. 2027/28 – New tax model goes into effect

FAQ – What You Should Know

• Can I still deduct renovations?

  Yes, but only until 2026/27

  
  

• What if I have a mortgage?

  Mortgage deductions will be eliminated, but total taxes will drop

  
  

• Is this a good time to buy?

  Yes - especially for capital-strong buyers

Conclusion – Why Now is the Time to Act

This reform levels the playing field and simplifies the process. The Engadin becomes even more attractive for second-home buyers and investors - with lower taxes and more transparency.

If you're a buyer with equity, now is the time to enter the market.If you're a homeowner, now is your last chance to benefit from renovation deductions and add value to your property.

The market rewards those who act early - turnkey properties will lead the trend.St. Moritz and similar destinations will continue offering the highest standards of living, infrastructure, and quality.

Whether buying or selling – Parli is your trusted partner in the Engadin.Contact us today for tailored advice.

Arch. Federico Parli

Abolition of Imputed Rental Value in Switzerland: A New Era for the Engadin Market

Renting & Renting Out in the Engadin: Your Summer 2025 Guide

With summer in full swing, the Engadin region presents fresh alpine opportunities—whether you're planning to rent out your property or find your perfect mountain retreat.

Market Snapshot: Engadin / St. Moritz

• Ultra-low availability: Only approximately 2 - 2.3 % of owner-occupied apartments are currently on the market in St. Moritz, confirming the market’s tightness

  
  

• High price per square meter:

  • Luxury apartments start around CHF 21,200 - 25,000/m², with prime locations reaching up to CHF 32,000 - 40,000/m², and exceptional listings even exceeding CHF 100,000/m².

  • The broader Alpine average is around CHF 22,300/m² - with Engadin / St. Moritz topping the rankings.

For Property Owners: Seize the Summer Surge

• Enhance seasonal appeal with outdoor spaces, light-filled rooms, and local amenities like lakes or hiking trails.

  
  

• Stay compliant: Short‑term rentals are regulated - Parli Swiss can guide you through the details.

  
  

• Stamp your property’s character in listings: highlight Engadin charm, views, and craftsmanship.

  
  

• Maximise returns: Combine short-term summer lets with year-round rental potential.

For Renters: Secure Your Summer Sanctuary

• Define your ideal stay: Chalet comfort or village proximity? Lakeside serenity or hiking access?

  
  

• Act early: Desirable summer rentals fill fast - start your search now.

  
  

• Live the season: Enjoy summer in Engadin - hiking, lake swimming, alpine charm.

Why Engadin Stands Out

This region offers more than beauty - it’s a lifestyle anchored in nature, culture, and enduring value. With supply remaining limited and demand strong, 2025 is shaping up to be a season of great possibilities.

Ready to explore?

Parli Swiss is here to guide you - whether you're renting, letting, or investing.

📩 Contact us for personalised support in the Engadin market.

Here’s to a vibrant summer filled with alpine opportunity!

Arch. Federico Parli

Quellen: UBS Alpine Property Focus 2025 | Ginesta Marktbericht St. Moritz 2024 | OAKS Immobilienkommentar 2025

Renting & Renting Out in the Engadin: Your Summer 2025 Guide

Buying and Selling Real Estate in the Engadine: Your Guide to Success

Welcome back to our Parli Swiss Blog! If you’re considering buying or selling property in Engadin, you’ve come to the right place. Engadin is renowned for its exclusive location, breathtaking mountain landscapes, and luxury #properties. Whether you’re an investor, looking for a second home, or a seller, we’ll show you how to make the most of the real estate market in Engadin.

Why is the Engadine Attractive for Buyers and Sellers

The Engadine is one of Switzerland’s most sought-after real estate markets. With year-round

recreational activities, #top-class ski resorts, and a luxurious lifestyle, the region attracts affluent buyers from around the globe. Properties in the Engadine offer strong value retention and are in demand as vacation homes and investments. But what should you consider to ensure a successful #purchase or sale?

Buying Property in the Engadine: What You Need to Know

1. Local Market Knowledge and Expert Advice

To purchase property in the Engadine, collaborating with an experienced real estate agent is essential. At Parli Swiss, we deeply understand the #Engadine market and help you find the best opportunities.

2. Regulations for Foreign Buyers – Lex Koller

As explained in our previous article, “Overcoming Challenges: Buying Property for Foreign Citizens in the Upper Engadine", purchasing real estate in Switzerland as a foreigner is subject to specific regulations (Lex Koller).

In summary:

• Foreigners can purchase properties with a net living area of up to 200 square meters

(approximately 240 gross square meters).

• The purchase process involves several steps, from obtaining authorization to notarial

authentication. Your real estate agent will assist you every step of the way.

3. The Purchase Process in Detail

• Property Search: Choose from a wide range of exclusive chalets, apartments, and luxury

properties throughout Engadin.

• Financing: Secure solid #financing. At Parli Swiss, we can arrange an initial consultation with one of our partner banks, which understand the market in depth and can offer you

advantageous long-term financing.

• Contract Management: Once all paperwork is in order, you can sign the purchase contract

and officially acquire your dream property in Engadin.

Selling Property in the Engadine: How to Achieve the Best Price

1. Market Analysis and Pricing Strategy

A realistic price is key to a fast and profitable sale. At Parli Swiss, we offer in-depth market #analysis to determine the optimal price for your property.

2. Professional Marketing

To successfully sell your property in the Engadine, we emphasize high-quality presentations.

Professional photography and virtual tours showcase your property and attract potential buyers.

3. Access to an Exclusive Network

With our extensive network of affluent buyers, we can market your property quickly and efficiently, often before it officially hits the market.

Our Current Offers and Newsletter

Interested in exclusive real estate opportunities in the Engadine? Subscribe to our newsletter to receive regular updates on new properties and investment opportunities.

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Contact Us for Personalized Advice

Whether you want to buy or sell, we support you with our expertise and tailored service. Contact us today for a non-binding consultation regarding your real estate projects in the Engadine. Contact Us

Coming Soon: Renting and renting out in the Engadine

In our next article, we will explore renting and renting out in the Engadine. Learn how to successfully rent out your property or find an exclusive vacation home. Stay tuned!

Arch. Federico Parli

Your expert for real estate in the Engadine

Buying and selling real estate in the Engadine