Renovating a property: what work is worth doing and when
A property is a long-term investment and needs regular maintenance to retain its value. We’ll show you what renovation work needs to be done and when – and our renovation planner will help you keep track of everything and plan the various jobs properly.
Why does a property need regular maintenance?
Every property changes over the years: weather, wear and tear on materials and everyday use mean that different parts of a property age at different rates. While silicone joints or paintwork may need renewing after just a few years, roofs or windows often last for several decades.
When work needs to be carried out depends on factors such as the type of construction, the materials used and how well the property has been looked after. However, there are some useful guidelines that property owners can follow.
What renovation work is typically needed and when?
Not all parts of a property have the same lifespan. The following overview gives you a guide to when different renovations or replacements are likely to be needed:
How much should you budget for maintenance each year?
Even if major renovations aren’t needed every year, it’s worth starting to build up financial reserves early on. As a rule of thumb, many experts recommend setting aside around 1% of the building’s insured value or purchase price each year for maintenance and future renovations.
For older properties or homes that need more extensive renovation, it may be wise to set aside a larger amount. By putting money aside regularly, you won’t end up having to cover the full cost of major work all in one go.
Which renovations are tax-deductible?
Not all renovation work is treated the same for tax purposes. The key factor is whether the work maintains the property’s value or increases it.
Works aimed at maintaining value serve to preserve the property in its existing condition. Examples include:
- Repainting the façade
- Replacing worn flooring
- Repairing a leaking roof
- Replacing an old kitchen or heating system
These maintenance costs can generally be deducted from taxable income.
By contrast, value-adding improvements increase the overall value or standard of the property. Examples include:
- Adding a conservatory
- Converting the loft
- Adding an extra balcony
- Upgrading to a significantly higher standard than before
As a rule, these costs cannot be deducted as maintenance expenses.
Energy-efficient renovations are a special case. Under certain conditions, investments that help save energy or protect the environment – such as improving thermal insulation or replacing an old heating system with a more energy-efficient one – may also be tax-deductible. Which work is recognised for tax purposes depends, among other things, on the regulations in the individual canton.
Important notice
On 28 September 2025, the referendum on the reform of the taxation of owner-occupied housing was approved. The reform concerns, among other things, the imputed rental value and tax deductions. Implementation will be determined by the Federal Council after consultations with the cantons — the information in this article refers to the legal framework that remains current until the reform comes into force. Further details are available from the Federal Department of Finance (FDF).
When is a flat-rate deduction worthwhile, and when is it better to claim the actual costs?
Property owners can generally choose between a flat-rate deduction and claiming the actual maintenance costs:
- Flat-rate deduction: a flat-rate deduction is claimed instead of the actual maintenance costs.
- Actual costs: all eligible maintenance costs are declared based on the actual invoices.
Which option works out cheaper depends on your expenses in the relevant tax year. If only minor maintenance work is needed, the flat-rate deduction is often enough. However, if major renovations to maintain the property’s value are required, claiming the actual costs may be more financially beneficial.
That’s why it’s important to keep hold of all your invoices and receipts.
How can you plan major renovations in a tax-efficient way?
If extensive maintenance work is due, timing also plays a role: if you carry out all the renovations in the same year, you’ll benefit from high tax deductions that year – but these will no longer be available the following year.
For this reason, depending on the circumstances, it may make sense to spread major renovations aimed at preserving value over 2 tax years. This allows you to claim maintenance costs in both years. Whether this is worthwhile depends, among other things, on your income, your planned investments and the tax rules in your canton. If in doubt, it’s a good idea to seek advice from a tax professional.
Summary
If you own a property, you should plan for its maintenance over the long term. Regular investment helps prevent major damage and maintain the value of your property. At the same time, it’s also worth considering renovations from a tax perspective. By understanding the difference between work that maintains a property’s value and work that increases it, keeping all your receipts and planning larger projects ahead of time, you can spread the costs more effectively and, in some cases, save on tax.
