Rental value in Geneva: annual indexation confirmed and abolition planned for 2029

The rental value is a key component of income tax for property owners in Geneva. Since November 2018, the State Council's regulation on rental value (RVL) has fundamentally changed the indexing rules. Gone are the days when indexation only happened every five years: since the RVL came into force, indexation has become annual. The index used is no longer the Swiss consumer price index (CPI), but the one published by OCSTAT (Cantonal Statistical Office) for freely rented dwellings at the end of May.

For the 2025 tax year, the OCSTAT index stands at 125.3 points (base 100 in 2007), an increase of +1.7% compared to 2024 (123.2 points). This moderate but steady annual increase has been observed since 2019: +0.9% (2019), +0.8% (2020), +0.9% (2021), +0.8% (2022), +1.1% (2023), +1.3% (2024), +1.7% (2025). Cumulatively over 2018-2025, the increase reaches +12.5%, representing a significant rise in the tax burden for Geneva property owners.

In concrete terms, if your rental value was CHF 24,000 in 2018, it will reach approximately CHF 27,000 in 2025. This increase of CHF 3,000 in additional taxable income results in an estimated additional tax of between CHF 600 and CHF 900 per year depending on your marginal tax rate. For owners of high-value properties (rental value of CHF 50,000 or more), the impact can reach several thousand francs per year.

For federal direct tax (FDT), the situation is specific. Since the rental value amount is determined by the cantons for cantonal tax purposes, the FDT mechanically follows the same rules. Thus, an increase in rental value decided by Geneva automatically affects federal tax. There is no separate rental value for the FDT: the amount used for the ICC also serves as the basis for the FDT.

Major news: the abolition of rental value taxation has been confirmed at the federal level. It will enter into force on 1 January 2029. This long-debated reform will end a system considered complex and sometimes unfair. Property owners will no longer be taxed on a theoretical rental income, but mortgage interest will no longer be deductible in the same way. The precise terms of this transition will be clarified in the coming years, but it is essential to anticipate now.

Until 2029, Geneva property owners must factor in the annual increase in rental value in their return. It is possible to challenge the rental value estimated by the administration if it manifestly does not correspond to the market value, by requesting an individual expert assessment. This procedure, governed by the tax administration, requires solid supporting evidence (comparison with market rents, condition of the property, etc.).

At MVO Fiducia, we monitor developments in Geneva rental value and support you in optimising your return. Whether you own an apartment, a villa or an investment property in Geneva, we help you correctly declare your rental value and anticipate the 2029 abolition. Contact us for a personalised appointment.