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Digital ID and second home taxes: Switzerland announces next referendums

GenevaTimes by GenevaTimes
May 22, 2025
in Switzerland
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Digital ID and second home taxes: Switzerland announces next referendums
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Swiss voters will have their say on two issues during the second round of this year’s national referendums, to be held later this year.

The first issue at stake in the votes scheduled for Sunday September 28th is the new Digital Identity Act (e-ID).

As a reminder, over 64 percent of voters had rejected an initial e-ID proposal (known as the Federal Act on Electronic Identification Services —LSIE)  at the ballot box in March 2021, citing concerns over data protection and violation of personal freedom.

There was also concern that the system would be provided mainly by private companies.

The Federal Council then countered with a new version of the proposal, touting its more secure concept, to be launched in 2026.

Even so, opposition to the law remained.

Populist groups that have spearheaded the referendum, reiterated  that even the new version of the electronic identity posed a serious threat to citizens’ freedoms.

READ ALSO: What you need to know about Switzerland’s controversial ‘electronic-ID’ 

Taxes on secondary residences

The second issue concerns the parliament’s decision in December 2024 to abolish the rental value tax for main and secondary residences.

This is an amount that corresponds to the rental income that an owner could receive if they rented out their property.

Currently, anyone who owns real estate must pay tax on this theoretical amount, set by tax authorities in each canton.

But for the tourist cantons, where many second homes are located, this move would represent significant losses of revenue.

To compensate for this, the National Council’s Economic Affairs and Fees Committee proposed that a higher rental value tax continues to be imposed on second homes.

This plan has also been approved by the Council of States, which means that the move has the support of the parliamentary majority.

However, as the new law would require a change in the Constitution, this means that a mandatory referendum has to be held, requiring approval of majority of voters.

READ ALSO: How owners of second-homes in Switzerland could lose out in new tax law 

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And a historic moment for Graubünden…

The September 28th referendums will be the first time that ballots in Graubünden will also contain questions written in Romansh.

According to the Federal Council, at the request of the canton, where this language is still spoken by about 60,000 people, ballots will be issued in three languages — ​​German, Romansh and Italian.

That’s because German is the predominant language in the canton, with Italian also widely spoken; Romansh is already included on cantonal ballots but not on federal ones.

They are in German, French, or Italian, depending on the canton.

 

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