Switzerland offers tax breaks at the federal and cantonal level for energy-efficient renovations.
Generally speaking, you can deduct expenses necessary for the upkeep and management of properties you own, as long as they don’t increase the properties’ value. You can take either a flat or itemized deduction.
Investments that go toward reducing a building’s energy consumption or installing renewable energy sources are considered upkeep expenses. This includes replacing old construction materials or installations and adding construction materials or installations to existing buildings, for example:
- adding thermal insulation and replacing windows with more energy-efficient models
- installing heat pumps, combined heat and power systems, or equipment powered by renewable energy
- installing meters that record energy consumption and optimize system functioning
- replacing household appliances that consume large amounts of energy, such as stoves, ovens, refrigerators, freezers, dishwashers, washing machines, lighting installations, etc., which add to the building’s value
- energy audits
You can deduct the full cost of these measures after subsidies. However, you can’t deduct investments made a new building or costs associated with the construction, enlargement, full renovation, or reclassification of a building.
You can find more information in the Vaud cantonal regulations for the deduction of residential property expenses.