It is not that absurd, we have the same in The Netherlands (eigenwoningforfait). And yes, we also have the property interest deduction, we literally call it mortgage interest deduction (hypotheekrenteaftrek, HRA).
They reason this is done is because it allows tax systems to tax main residencies differently from regular real estate tax measures, which is usually in the wealth section of tax policy.
It stems from the 1890s in The Netherlands, I assume it'll be around the same era for Switzerland and Germany.
And for other readers, yes it is as terrible a tax policy as it sounds. It is highly regressive, favoring home owners over renters, and the more expensive your house the bigger the deduction. In The Netherlands the current election cycle has it as one of the subpoints of our housing crisis, and it seems the battle won't even be about if it should be abolished, but rather if the timeline should be 30, 15, or 8 years.
It is not that absurd, we have the same in The Netherlands (eigenwoningforfait). And yes, we also have the property interest deduction, we literally call it mortgage interest deduction (hypotheekrenteaftrek, HRA).
They reason this is done is because it allows tax systems to tax main residencies differently from regular real estate tax measures, which is usually in the wealth section of tax policy.
It stems from the 1890s in The Netherlands, I assume it'll be around the same era for Switzerland and Germany.
And for other readers, yes it is as terrible a tax policy as it sounds. It is highly regressive, favoring home owners over renters, and the more expensive your house the bigger the deduction. In The Netherlands the current election cycle has it as one of the subpoints of our housing crisis, and it seems the battle won't even be about if it should be abolished, but rather if the timeline should be 30, 15, or 8 years.