Quick answer
Owners in the Gstaad area pay annual taxes at federal, cantonal (Bern) and municipal (Saanen) level. The main ones are income tax on the imputed rental value (Eigenmietwert), wealth tax on the property, and municipal levies. The imputed rental value is due to be abolished from 2029, along with most related deductions.
Owning property in the Gstaad area means paying annual taxes at three levels: federal, cantonal (Bern), and municipal (Saanen). This is not about the one-time costs of buying (see the buying process guide) but about the ongoing annual tax burden of ownership.
The Swiss system has features that surprise international buyers, particularly the imputed rental value (Eigenmietwert), which taxes you on income you never receive.
The Three Annual Taxes
1. Income Tax on Imputed Rental Value (Eigenmietwert)
If you own a property in Switzerland, even if you live in it yourself, you are taxed on its "imputed rental value." The logic: if you did not own the property, you would pay rent, and that rent would be someone else's taxable income. By living in your own property, you are receiving an economic benefit equivalent to that rent.
How it is calculated in Canton Bern:
- The cantonal tax authority assigns an official value (amtlicher Wert) to your property
- The imputed rental value is derived from this official value, typically set at approximately 60-70% of what the property would fetch as a market rent
- This imputed income is added to your other taxable income and taxed at your marginal rate
The 2020 revaluation: Canton Bern conducted a general property revaluation in 2020. For many Saanenland properties, this led to significant increases in official values and, consequently, higher imputed rental values and tax bills.
Deductions: You can deduct mortgage interest and maintenance costs (actual or a flat-rate allowance) against the imputed rental value. This is one reason Swiss homeowners maintain mortgages even when they can afford to pay them off.
The 2029 abolition: Swiss voters approved the abolition of the Eigenmietwert on 28 September 2025. The new regime takes effect for tax year 2029. Until then, the current system applies. When abolished, mortgage interest and maintenance deductions will also be removed (with some exceptions for energy-saving measures). The net impact for Gstaad owners depends on their mortgage level and maintenance spending.
2. Wealth Tax (Vermögenssteuer)
Switzerland taxes net wealth annually. Your property's official value is included in your taxable wealth.
How it works:
- The property's official value (amtlicher Wert) is added to your other assets (bank accounts, investments, other property)
- Debts (including your mortgage) are deducted
- The net wealth is taxed at the cantonal and municipal rates
Bern cantonal wealth tax:
- Progressive rates, increasing with the level of wealth
- The rate starts low and rises gradually
- For substantial wealth (which most Gstaad property owners have), the marginal rate is in the range of 0.3-0.5% of net wealth annually
- The Saanen municipal multiplier (Steuerfuss) applies on top of the base cantonal rate
Practical impact for Gstaad owners: If your property has an official value of CHF 5 million and your mortgage is CHF 2 million, the property adds CHF 3 million to your taxable wealth. At a combined cantonal/municipal wealth tax rate of approximately 0.3-0.5%, the annual wealth tax attributable to the property is roughly CHF 9,000-15,000.
3. Municipal Levies
Saanen municipality (which includes Gstaad) levies its taxes as a multiplier on the cantonal base rates. The municipal multiplier (Anlagekoeffizient) covers local services: roads, schools, infrastructure, firefighting, and administration.
The Saanen multiplier has historically been moderate by Bernese standards, reflecting the significant property tax revenue the municipality collects from its large base of high-value properties and lump-sum taxpayers (approximately 180 individuals).
Note: we do not have the current 2026 Saanen Anlagekoeffizient confirmed in our sources. Verify this with the Gemeinde Saanen tax office directly for precise budget calculations.
Tax on Second Homes vs Primary Residences
The tax treatment differs depending on how you use the property:
| Factor | Primary Residence | Second Home (Holiday) |
|---|---|---|
| Imputed rental value | Taxed as income (until 2029 abolition) | Taxed as income |
| Wealth tax | Property included in wealth | Property included in wealth |
| Mortgage interest deduction | Yes (until 2029 abolition) | Yes |
| Maintenance deduction | Yes (actual or flat rate) | Yes |
| Transfer tax exemption | First CHF 800,000 exempt in Bern | No exemption |
| Lump-sum taxation | May apply (if eligible) | Not relevant (lump-sum requires primary residence) |
For second-home owners who are not Swiss tax residents, the tax situation depends on their home country's double-taxation agreement with Switzerland. Switzerland generally taxes the property income and wealth, and your home country provides a credit or exemption.
Example: Annual Tax Burden
Scenario: CHF 10M Chalet, Primary Residence, Regularly Taxed
| Tax Component | Approximate Annual Amount |
|---|---|
| Imputed rental value (added to income, taxed at marginal rate ~35%) | CHF 40,000-60,000 |
| Less: mortgage interest deduction (CHF 5M mortgage at ~1.5%) | −CHF 25,000-30,000 |
| Less: maintenance flat-rate deduction | −CHF 5,000-10,000 |
| Net income tax from property | CHF 10,000-25,000 |
| Wealth tax (property value less mortgage, ~0.3-0.5%) | CHF 15,000-25,000 |
| Total annual property-related tax | CHF 25,000-50,000 |
Important: These are rough estimates. Your actual tax depends on your total income, total wealth, the specific Saanen multiplier, and your mortgage level. A Swiss tax advisor can model your precise situation.
Scenario: CHF 10M Chalet, Lump-Sum Taxpayer
For lump-sum taxpayers, the calculation is different. The imputed rental value feeds into the lump-sum base (seven times the annual rental value is one of the three possible floors), but the overall tax burden is determined by the lump-sum assessment, not by adding individual components.
The 2029 Eigenmietwert Abolition: What It Means
The approved abolition of imputed rental value changes the equation from 2029:
What goes away:
- Imputed rental value as taxable income
- Mortgage interest deduction (for most properties)
- Maintenance cost deduction (with exceptions for energy-saving measures)
What stays:
- Wealth tax on the property's value
- Property gains tax when selling
- Municipal levies
Winners and losers:
- Owners with no mortgage: Win. They lose a modest deduction but gain by no longer paying tax on imputed income.
- Owners with large mortgages: May lose. The mortgage interest deduction disappears, while the imputed-income tax that offset it also goes. The net effect depends on the specific numbers.
- New buyers: May be less incentivised to maintain a mortgage for tax efficiency.
The full impact for Gstaad owners will become clear as the implementing legislation is finalised.
Frequently Asked Questions
What is the Eigenmietwert? The imputed rental value: a deemed income based on what your property would earn as a rental. You are taxed on it as if it were real income, even though you receive no cash. It is being abolished from 2029.
How much wealth tax do I pay on my Gstaad property? The property's official value, minus your mortgage, is added to your taxable wealth. At Bern cantonal/municipal rates, this is approximately 0.3-0.5% annually on the net amount.
Is there a property tax like UK council tax or US property tax? Not directly. Switzerland taxes property through income tax (Eigenmietwert) and wealth tax, not through a separate annual property levy. The Saanen municipal multiplier applies to these base taxes.
How does the 2020 revaluation affect me? If your property's official value increased in the 2020 revaluation, your imputed rental value and wealth tax base also increased. Many Saanenland owners saw higher tax bills as a result.
Can I appeal my property's official value? Yes. If you believe the valuation is too high, you can challenge it through the cantonal assessment process. Professional help is advisable.
For a confidential conversation about your search or sale, contact The Gstaad Collection.
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