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FAQ Financing and taxes: Professional answers to your questions

If you don't ask, you remain ignorant - or read our FAQs! This time we focus on the topic of financing and taxes for renovations. Whether condominium ownership, subsidies or tax deductions: Here you can find out what homeowners wanted to know from us on the subject - and how our professionals answered.

04.08.20225min5min

Can I use pension fund assets for home renovation?

Yes, pension fund assets can be used for renovation investments. Both for value-preserving and value-enhancing investments.

How high should a renovation fund be?

This depends on the size of the property. The homeowners' association recommends a target value for the renewal fund of at least 5-10% of the building insurance value.

Do online mortgage calculators make a difference?

With an online mortgage calculator, you can find out about financing on your own and free of charge - with no obligation. Regardless of whether you have already found the property of your dreams or simply want to know what you could afford. You can also experiment with different variables to try out different options.

We live in a cohabitation. What to consider when financing modernization? We would both invest.

In the end, the financing simply has to be secured. It is advisable to regulate the flow of funds within the framework of a cohabitation agreement. We recommend that you arrange a meeting with a succession specialist at your bank.

Where can I find information on federal subsidies? What subsidies are available for photovoltaics, heat pumps, etc.?

To receive subsidies, it depends on where you live. At the Building Program you can find out how much grant money you will receive for your project. This website also tells you how to apply for the subsidies.

Can contributions to a renewal fund be tax deductible?

In many cantons, payments into the renewal fund are deductible for condominiums, provided the funds are used for maintenance. However, no deduction is allowed for the actual expenses.

Are the costs for a new photovoltaic system and charging stations in the underground garage in a condominium house deductible from taxes?

Photovoltaic systems are generally tax deductible. The costs of operation and maintenance as well as the acquisition costs are deductible.

Can I have the property classified as "Minergie" if energy consumption is improved?

Yes, this is quite possible. If the 78 criteria for the Minergie standard are met as a result of improvements in energy consumption, there is nothing to prevent the property from being classified accordingly.

My parents live in the house as occupants and will be moving out in a year. We, as owners, will move into the house. The house will only pass to us after death. Who is assessed regarding the mortgage? How is the assumption of costs regulated?

Since you are the owner, you will be included in the assessment: The mortgage will be transferred to you. According to the law, the usufructuary bears the costs for ordinary maintenance. This includes all ancillary costs, periodic repairs and ongoing repairs, such as the maintenance of paths and pipes. Furthermore, the usufructuary has to pay the mortgage interest and the insurance premiums. In principle, the usufructuary can deduct all these costs from his taxes.

The Swiss parliament voted to abolish the imputed rental value - but also to abolish deductions for renovation costs (except energy costs). When will this new rule come into force?

The commission is currently debating the abolition of imputed rental value. The matter will then go back to the National Council. It is not yet clear whether agreement will be reached, and thus no one knows when and whether the imputed rental value will actually be abolished.

Should we renovate now or wait because of the worldwide shortage of raw materials?

You should definitely tackle your project now: Planning, approval and obtaining offers take time. As a rule, the lead time is around nine months.

Now you are asked

What would you like to know about financing and taxes for your modernization project? Send us your questions! We will be happy to answer the questions received and perhaps even include them in another round of the FAQ.

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