The Swiss parliament is getting ready to tackle the proposed taxation of foreign nationals who settle in Switzerland. The debate is likely to be both heated and contentious, so what will happen next?
To understand what is at stake and how this idea came about in the first place (and evolved over time), let’s go back in time to 2023.
What happened then?
In October 2023, right-leaning Swiss economist Reiner Eichenberger, put forth an idea that as immigrants in Switzerland earn much more than they would performing the same work in their home countries, they should pay “residence taxes of 5,000 francs annually.”
Shortly after, in December 2023, MP Andrea Caroni from the Swiss People’s Party (SVP) filed a motion in the Parliament seeking to impose an ‘entry fee’ on immigrants.
His arguments echoed Eichenberger’s: foreign nationals should pay for the “privilege of living in Switzerland and taking advantage of its excellent infrastructure.”
A similar measure was proposed again 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.
What was the initial reaction to these proposals?
The Federal Council said at the time that such a move would be incompatible with freedom of movement agreement that Switzerland has with the EU and would be discriminatory against immigrants.
Business umbrella organisation EconomieSuisse was also skeptical about the proposal.
It feared that such a move would further exacerbate the existing labour shortage, as it would discourage foreigners from coming to Switzerland and Swiss employers from hiring them.
However, the Federal Council asked the Parliament to prepare a report listing pros and cons of such a measure, both from the legal and logistics point of view.
What happened next?
Fast-forward to May 2026.
Based on the parliamentary report, the Federal Council concluded that immigration fee would proffer no “demonstrable economic benefits to Switzerland.”
Further, “the introduction of an immigration tax would face numerous legal obstacles.”
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 pointed out.
READ MORE: Switzerland examines much-talked about immigration tax
Has this report put an end to the matter?
No; instead, it is gaining momentum on the political level.
In August 2026, the Council of States’ Committee on Political Institutions said that it wants to add an immigration levy to the ‘safeguard clauses’ within the future package of agreements between Switzerland and the European Union.
And in an unexpected turnaround from its original stance, the Federal Council has also warmed up to the idea of imposing a fee on new immigrants.
It said said it favours an “incentive-based tax” – the details of which have not been disclosed – “the revenue from which would be redistributed to the population and the economy.”
Does this mean Switzerland is now closer to levying such a tax?
No.
Just because the Federal Council is now more open to the idea doesn’t mean that this levy will actually be implemented, especially in the near future.
The debates in both houses of the Parliament – the National Council and the Council of States – could be long and contentious, especially as many deputies are against this measure.
For instance, Green MP Delphine Klopfenstein Broggini said that “this proposal sidesteps another debate: migration clearly benefits Switzerland.”
Many foreigners could end up not coming to Switzerland at all to avoid paying this tax.
And “without this workforce, Switzerland would not have the wealth it enjoys today,” she added.
READ MORE: Swiss ‘immigration tax’ proposal gets a boost from the government
When will we know the outcome?
Not for a while.
As with any parliamentary proposals, it too will be debated at length at the legislative level.
If both houses vote in favour of it, the Parliament will have to draft a bill.
But before it can be enacted, Swiss voters will have their say on this matter.
