FAQ Funding and taxes: The pros answer your questions

Can I tap into pension fund assets to pay for my home renovation?

Yes, you are free to use pension fund assets to invest in renovation, whether for preserving or enhancing value.

How high should the value of a renewal fund be?

It depends on how big your property is. But the Swiss Property Owners Association recommends targeting at least 5-10% of the building insurance value for your renewal fund. Learn more about the renewal fund and condominium ownership here.

Is it worth checking out online mortgage calculators?

With an online mortgage calculator, you can research financing freely in every sense, with no charge levied and no obligation either. This applies, regardless of whether you have already found your dream property or simply want an idea of what is affordable. So why not experiment with a range of variables and test-drive various scenarios!

We’re a cohabiting couple. Is there anything we should bear in mind when financing the modernisation, given that we would both invest?

Ultimately, securing the flow of financing is key and this is a process best regulated within the scope of a cohabitation agreement. We recommend arranging an interview with a succession specialist at your bank.

Where can I find information on federal funding?
What are the available subsidies for photovoltaics, heat pumps and so on?

The eligibility for grant funding depends on where you live. With the building program, you can find out how much grant money you can receive for your project. In our article on the topic of "Applying for Grants," you will find detailed information on this subject.

Can contributions made to a renewal fund be offset against tax?

In many cantons, payments you make towards a renovation fund are tax-deductible for owner-occupied dwellings, provided they are used to fund maintenance. However, no further deduction for effective expenses is then allowed.

Are the costs incurred for a new photovoltaic system and charging stations in the underground car park in a house with condominium ownership tax-deductible?

Photovoltaic systems are tax-deductible as a general rule. This includes the costs of operating and maintaining the systems, as well as acquiring them in the first place.

Can the property be classified as "Minergie" if it is made more energy-efficient?

Yes, that is certainly possible. Provided the 78 criteria included in the Minergie standard are met as a result of energy consumption improvements made, the Minergie label can be applied to the property.

My parents occupy the house as beneficiaries and are due to move out in a year from now. We, the owners, will move into the house, but the house will only be passed onto us after my parents pass away. Who is assessed when determining the mortgage? How is the assumption of costs regulated?

As the owners, you will be included in the assessment and the mortgage will also be transferred to you. The law dictates that it is the beneficiaries who bear the cost of ordinary maintenance. This includes all ancillary costs as well as periodic and ongoing repairs, such as maintaining paths and pipes. Beneficiaries also have to cover the mortgage interest and insurance premiums, although these amounts are tax-deductible as a general rule.

The members of the Federal Council voted not only to abolish the imputed rental value, but also deductions for renovation costs (except when energy-related). When will this new rule come into force?

The Commission is currently discussing the abolition of the imputed rental value, whereupon the matter will return to the National Council. Whether agreement will be reached is unclear, so it is still impossible to say when and whether the imputed rental value will actually be scrapped. You can find more about this in our article "Imputed rental value: Is the writing now on the wall?".

Is it still a good idea to renovate now, given the global shortage of raw materials or better to wait?

You should definitely get your project off the ground now, since planning, approval and obtaining offers take considerable time. Expect it to take around nine months at least.

And now: over to you

What would you like to know about financing and taxes for your modernisation project? Let us have your questions! We are more than happy to answer any questions received, some of which we may even include in a new round of FAQ.