On: Switzerland will vote on having a national wage of £1,700 a month

[themartorana]

Isn't it in most countries? In the US the interest paid is at least a write off. But principal payments have already been taxed as income...

[chimeracoder → themartorana]

No, this is different from what happens in the US.

Let's say I buy a house in the US and pay cash (no mortgage, no financing). I now own this house and decide to live in it. I will have to pay local property taxes, but I do not have to pay any income tax.

Now, let's say I instead rented out the house to someone else (and lived somewhere else), I would be making income on the rent, and therefore paying income tax on the rental income.

In Switzerland, if you live in the house that you own (the first example), you are considered to be renting it to yourself. So you have to pay income tax on the market rent for your home, even if you are both the tenant and the landlord.

EDIT: For the record, I don't know why you're being downvoted for asking for clarification.

[themartorana → chimeracoder]

Thanks, I see what is meant now. Don't know why I'm getting downvoted either. Seems a rather innocuous question by someone not native to Switzerland.