When calculating the property gains tax, is a kitchen renovation classified as a value-increasing investment or as pure maintenance?

The mixed calculation of kitchen renovation

A kitchen renovation is usually classified as a mixed expense. The part that involves the replacement of existing equipment with equivalent models (e.g. a new oven instead of an old one) is considered value-maintaining maintenance. Only the part that exceeds the previous standard (e.g. installation of an additional steamer or upgrade from plastic to granite) is recognized as a value-adding investment. Only value-adding shares are deductible as investment costs for property gains tax.

Maintaining value versus increasing value: The Swiss system

To reduce property gains tax, you must increase investment costs. However, the tax office only allows costs that have permanently increased the value of the property.

The definitions in detail

• Retention of value (maintenance): Repairs or 1:1 replacement of components. You can usually deduct these costs from your income on an annual basis.
• Increasing value: Investments that raise standards or add new features. These costs reduce property gains tax on sales.

Practical examples: What counts how much?

In 2026, the tax authorities will use detailed tables to estimate the value-adding share of a kitchen renovation. A lump sum of 50% maintenance and 50% increase in value is often assumed, unless detailed evidence is available.

Typical classifications for kitchen components:

| Component | Maintenance (value retention) | Value enhancement (investment) |

|: -: |: -: |: -: |

| Worktop | Laminate panel replacement | Extra charge for natural stone or ceramic |

| Appliances | Replacing the broken refrigerator | Installing a wine cooler or steamer for the first time |

| Floor plan | Same arrangement of cabinets | Relocating pipes for a cooking island |

| Material | Standard fronts (plastic) | High-quality lacquered or wooden fronts |

The 20-year rule and the lifespan

An important factor in the assessment is the age of the replaced kitchen. In Switzerland, the average lifespan of a kitchen is 15 to 25 years.

• Early replacement: If you replace a functional kitchen that is only 5 years old with a luxury model, the value-adding share is rated significantly higher (often up to 80%).
• End of life replacement: If the kitchen is 25 years old and “worn out”, the majority of the renovation is considered necessary maintenance (value retention) to keep the apartment habitable at all.

The risk of double withdrawal

In 2026, the data systems of the cantonal tax offices (e.g. Zurich and Geneva) will be closely linked. A common mistake is trying to use the same invoice twice.

The prohibition of double privilege

You may not claim costs that you have already deducted as maintenance on your annual income tax return years later as investment costs in property gains tax.

Strategy tip: If you know that you will sell the property soon, it may be more advantageous to declare renovation costs as value-adding in order to reduce the (often higher) property gains tax rather than reduce income tax.

Strategy with heyloft.ch: documentation right from the start

Anyone who doesn't think of selling it later during the renovation is giving away cash. heyloft.ch helps you manage the tax relevance of your interior design.

Why digital document management protects profits

Instead of frantically searching for old receipts when selling, our system helps you:

• Target/actual comparison: Upload the offer for your new kitchen. Based on the material information, our AI estimates the expected share of the increase in value for your canton.
• archiving: Save photos of the old and new kitchens. Before-and-after pictures are the strongest argument against the tax commissioner to prove an increase in comfort.
• forecasting tool: We calculate for you how the restructuring will affect your real estate gains tax bill in the long term.

Conclusion: System beats luck through burden of proof

Is the kitchen classified as an increase in value or maintenance? Usually as both. The trick is to justify the value-adding share vis-à-vis the tax office as high as possible, but professionally sound.

In summary, it can be stated: Keep not only the invoice, but also the building description, which documents the increase in quality. Anyone who sees their restructuring as a strategic increase in value and uses the data power of heyloft.ch to professionally conduct their tenant due diligence (or seller audit) will sustainably optimize their tax burden. Your perfect match — top culinary and tax smart — is within reach with the right preparation.

glossary

• investment costs: The basis for tax calculation; consisting of purchase price and value-adding investments.
• Joint lifetime table: A joint document from the tenant and Homeowners Association, which also serves as a guideline for the lifetime of components by tax authorities.
• marginal tax rate: The percentage at which the last franc of your income is taxed; important for deciding between income deduction and property gains tax deduction.
• Tenant due diligence (seller check): The systematic preparation of all restructuring documents before sale in order to extract the maximum of deductible sales costs.