Swiss Imputed Rental Value Abolition Analysis

Provisional thesis title “Abolition of the imputed rental value (Eigenmietwert) in Switzerland: qualitative implications for homeowners’ decisions and property management in luxury tourist destinations. Focus on Engadin.” What I have to do (aim of the thesis) I need to develop a Master’s thesis that explains—clearly and using a qualitative approach (without calculations or complex models)—what consequences the abolition of the imputed rental value may have on homeowners’ decisions. In particular, I will examine how decisions and behaviours related to property management, maintenance, and renovations may change, especially within a specific context: luxury Alpine tourist destinations, with a focus on the Engadin and Gstad How I should do it (structure and key contents) The thesis should be written in a structured and academic way, following these steps: Theoretical framing (literature review) Explain what the imputed rental value is and what it has implied up to now: what incentives it created and how it influenced homeowners’ behaviour (in a clear, accessible way, without going into technical tax detail). Description of the reform Summarise the key elements of the abolition and the transitional phase (deductibility of renovation costs until implementation), again in an accessible and non-technical way. Conceptual framework on homeowners’ behaviour Develop a qualitative explanation of the “mechanism” through which a tax change can lead to changes in decisions—for example, bringing renovations forward, postponing them, changing quality standards, or adjusting the approach to maintenance. Context of the Alpine luxury market and the Engadin focus Explain why luxury real estate markets (Engadin, with comparative references to Gstaad/Verbier) can sustain such high values: exclusivity, scarcity of supply, international demand, and destination reputation. This provides context for why the impact of the reform may differ from other markets. Simple empirical component: qualitative interviews Include a small number of semi-structured interviews (e.g., 4–6) with relevant stakeholders (municipality/local authorities, luxury real estate operators, property management professionals). The goal is to collect perceptions and expectations about how homeowners’ choices may change and what adaptation strategies or substitute measures are being considered—without entering into complex tax specifics. Discussion and conclusions Combine the literature, the reform overview, and the interview findings to present a coherent interpretation: what implications emerge for homeowners and for the management/quality of the property stock in the Engadin, what scenarios are plausible, and what the limits of the analysis are. Expected outcome The thesis should result in a clear, well-structured, and Engadin-focused study that convincingly describes how the abolition of the imputed rental value could affect homeowners’ decisions and the quality/management of properties in luxury tourist destinations. The Committee welcomes the thesis proposal and recommends clarifying precisely the project’s element of innovation, avoiding an approach that is overly descriptive or already widely covered in the literature. In particular, the Committee requests that the main focus be shifted to the abolition of the imputed rental value and its implications, while any comparison between primary and secondary residences may be retained only as a contextual chapter and not as the central axis of the thesis, as it does not ensure sufficient originality. The Committee further suggests maintaining a clear territorial focus on the Engadin, highlighting its specific characteristics, and considering the luxury real estate segment (with possible comparative references to similar Alpine markets such as Gstaad and Verbier) in order to understand the factors that sustain the high level of exclusivity and price levels. In addition, the Committee encourages the development of an empirical component that makes it possible to observe, or plausibly reconstruct, the effect of the reform—for example by investigating whether and how the abolition of the imputed rental value may influence homeowners’ decisions (maintenance, renovations, property management), and which substitute strategies might emerge to offset the loss of cost deductibility. Finally, the Committee requests that the project inputs (title, objectives, research question, methodology, and structure) be reformulated within a short timeframe

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