After nearly seven years of debate, Switzerland's National and Council of States have reached a compromise to abolish the controversial "Eigenmietwert" tax.

This tax, which treats the rental value of owner-occupied homes as taxable income, has long been criticized for its complexity and perceived unfairness.

The proposed reform would eliminate the tax for both primary and secondary residences while limiting mortgage interest deductions.

However, the plan includes introducing a new property tax on secondary homes to offset revenue losses, particularly in tourist regions.

The final parliamentary vote is set for Friday, and if approved, the reform will go to a public referendum due to the required constitutional amendment.

The reform faces opposition from various sectors, including the construction industry and some cantons, but supporters argue it simplifies the tax system and addresses household debt issues.