Swiss government ministers have analysed a parliamentary report about the viability of proposed immigration tax – an ‘entry fee’ that foreign nationals would have to pay if they settle in Switzerland.
The report was commissioned after the Swiss People’s Party (SVP) raised the idea of taxing immigrants in 2023.
MP Andrea Caroni, the move’s instigator, argued that foreigners who come to Switzerland take advantage of the country’s excellent infrastructure and other benefits, and should therefore pay for it.
He asked the Federal Council to look into the feasibility of imposing such a tax either directly on foreign workers or the companies that hire them.
“This would make employers wonder whether they should actually recruit someone from abroad instead of from within the country,” he said.
READ MORE: Could foreigners in Switzerland be forced to pay ‘immigration tax’?
A similar measure was proposed in 2025 by deputy Simon Michel from the Liberal-Radical Party (FDP).
Under his proposal, anyone moving to Switzerland would have to pay 3 percent of their income for 11 years, thus generating up to 1 billion francs annually, which would be redistributed among Switzerland’s population — for instance, in the form of a reduction in health insurance premiums.
‘No economic benefits’
After examining the parliamentary report on this subject, the Federal Council concluded on May 6th that “the only option considered feasible without amending the Constitution would be to introduce an incentive-based tax, the revenue from which would be redistributed to the population and the economy.”
However, applying this tax to nationals of EU and EFTA (Norway, Iceland, and Liechtenstein) “would be contrary” to the terms of the free movement of people agreement that Switzerland concluded with the European Union.
According to the Federal Council, the report “does not identify any demonstrable economic benefits to Switzerland;” not only that, but “the introduction of an immigration tax would face numerous legal obstacles.”
No precedence
Ministers also pointed out that since this type of tax “is not widespread globally, the Federal Council cannot draw on the experience of other countries in this matter.”
In fact, the global trend is toward recruiting workers from abroad, not penalising them for living in a country, the Federal Council stressed.
“Many member states of the Organisation for Economic Co-operation and Development (OECD) are striving to implement a system for foreign workers that allows them to remain competitive in recruiting the skilled workers they need during periods of labour shortage,” instead of finding ways to keep them away.
What’s next for this proposal?
The Federal Council’s view will be taken into account during a parliamentary debate on this issue, at a yet undetermined date.
In an unlikely case that it is accepted by the majority of deputies, a draft bill will follow.
Ultimately, though, Swiss voters will likely have the final say if the proposal ends up at the ballot box.
