SHARE
COPY LINK
For members

SWITZERLAND EXPLAINED

Five things that reveal Switzerland’s unique approach to prostitution

Given Swiss organisational skills and knack for efficiency, it is not surprising that the world’s oldest profession is micro-managed as well.

A woman wearing heels.
The Swiss have a pragmatic view towards sex work. Photo: Eric Nopanen on Unsplash

Prostitution has been legal in Switzerland since 1942, though, like everything else in this country, it is heavily regulated.

However, the rules are intended to protect sex workers and allow them to work freely — that is, to rule out any attempts by third parties at foul play (read more about this below).

Today, there are more than 20,000 prostitutes of all genders registered in Switzerland.

Interestingly, the trend in this ‘profession’ mirrors the one observed in the country’s labour market in general: because of the high earning potential, Switzerland is a mecca for foreign sex workers, mostly from South America, Eastern Europe, and EU nations.

All of them are considered to be self-employed contractors and can choose venues where to ply their trade, such as brothels, clubs, or streets.

According to Aspasie, the Geneva-based advocacy group for prostitutes, “any person from abroad who wishes to legally practise sex work must obtain work permit L, B, or G” — in other words, just like any other foreigner.

These are five examples showing that Switzerland’s pragmatic attitude toward prostitution makes a lot of street sense.

No stigma attached to sex work

In Switzerland, sex work is considered to be a legitimate service job like any other, and there is absolutely no shame or disgrace attached to it.

In fact, when a small Zurich NGO launched a campaign in 2018 to ban prostitution, it sparked an outcry against this move from other Swiss organisations, which upheld the rights of sex workers.

As the Zurich daily newspaper, NZZ, stated at the time, if sex work were to be banned, “there is no existing evidence that prostitution wouldn’t just disappear underground and women would be forced into an illegal existence.”

Sex work is regulated – and prostitutes pay taxes

A tolerant attitude is pervasive in Switzerland.

That is why the pragmatic Swiss prefer to bring prostitution out into the open, so it can be regulated and controlled to prevent exploitation, human trafficking, sexually transmitted diseases, links with criminal networks, and other problems that are rife in nations where sex commerce is forbidden.

In fact, like all the other independent contractors in Switzerland, sex workers must pay taxes on their income, and contribute to their Social Security funds.

The only rule they have to follow, unlike their counterparts in other sectors, is that they must register with public health authorities and undergo regular health checks.

Prostitutes have their own union

Like members of many other professions, prostitutes in Geneva have had, since 2012, their own trade union.

It not only represents the interests of its 800 members, but also liaises with city authorities and police (yes, you heard it right) to improve work conditions and the earning potential of the city’s sex workers.

… and their own government-sponsored digs

In the past, Zurich streets were getting crowded with sex workers, so the residents turned to Switzerland’s unique system of direct democracy to solve this problem.

In 2012, the majority of city voters approved a municipal plan to set aside 2 million francs of taxpayers’ money to build several drive-in structures in a safe and discreet environment, away from the residential neighbourhoods. Another $800,000 was earmarked for annual operation costs, which include security and on-site social services. 

As the city noted on its website at the time, the premises were intended to “improve the working conditions of sex workers – their health, physical and mental integrity”.

Switzerland values that sex workers meet a need

In 2018, a dispute erupted in a small town of Arbon in canton Thurgau.

It concerned the local brothel, located in the town’s historic center.

As the local newspaper reported, several residents who live in the brothel’s vicinity wrote a letter to the city officials, complaining about the sights and sounds emanating from the facility, and asking authorities to shut it down.

“Almost every day, the women stand naked by the windows,” the neighbours wrote, adding that “the ladies wait for their customers and start loud music as soon as they arrive”.

But municipal officials responded that the brothel will be allowed to operate because of the valuable service it provides. “This establishment has a right to exist, as it fulfils the social need of the population,” authorities wrote in a letter to the complainants.

They added that the disturbances have a “neighbourly character” and are accidental rather than intentional.

Leave it to the Swiss to be thoroughly pragmatic.
 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

SWITZERLAND EXPLAINED

Why German-speaking Swiss cantons will pay money to French-speaking ones

Nearly every one of Switzerland’s French-speaking cantons will be receiving financial support from German-speaking cantons in 2025. How does this happen, and why is there such a wealth disparity between certain parts of Switzerland?

Why German-speaking Swiss cantons will pay money to French-speaking ones

As outlined in annual data published by the Federal Finance Administration this week, six of the seven cantons where French is recognized as an official language will be receiving support from German-speaking cantons in 2025.

Geneva will be the sole exception – in fact, it’s contributing. 

Overall, 18 out of Switzerland’s 26 cantons will receive money – including many German speaking cantons (see map below) – and 8 will pay out to other cantons. In all the total transfer between cantons next year will add up to 6.2 billion Swiss francs.

Valais will be receiving the most financial support per number of residents – 2,469 francs per capita, followed by Jura at 2,229 francs and Neuchâtel at 1,818 francs per capita. 

The three cantons contributing the most – Zug (CHF 3,321 per capita), Schwyz (CHF 1,520) and Nidwalden (CHF 1,081) all recognise German as an official language. The other contributing cantons are Zurich, Geneva, Basel-CIty, Obwalden and Shaffhausen. 

Image: Federal Finance Administration

Why are cantons redistributing funds?

For decades each of Switzerland’s 26 cantons was able to hold onto the entirety of the taxes levied at the cantonal level, under the country’s devolved administration. 

This changed in 2008 when the Federal Council introduced the national financial equalisation mechanism, which had two purposes – reducing inequality in wealth between the country’s cantons, and ensuring that each could fulfil their responsibilities at the same level. 

Essentially some cantons (see below) take in far more in tax receipts than others and the mechanism is aimed at reducing the inequality that creates.

The redistribution also allows cantons to pay for public services which are harder to provide in certain parts of Switzerland than others, due to geographical challenges such as the Alps.

Using a complicated formula that has undergone several revisions, the cantons giving and taking funds are identified, before funds are distributed each year. 

READ MORE: EXPLAINED: Why Switzerland’s cantons are so powerful

So why are German-speaking cantons subsidising French-speaking ones? 

The distribution of specific industries and businesses within Switzerland’s cantons plays a significant role in the disparity. 

The German-speaking cantons of Zug, Nidwalden and Schwyz, who will contribute the most, are each significant centres of economic activity across multiple sectors.

Approximately eight percent of the country’s GDP is generated between these three cantons and it has seen dramatic growth over the past decade.

These three cantons also feature the highest overall concentration of startups in Switzerland, with Zug (13.7 per 1000 residents) in the lead, followed by Schwyz (6.07) and Nidwalden (4.42). 

Additionally, it’s also worth noting that ‘Crypto Valley’ – the concentration of cryptocurrency and blockchain businesses focused on the canton of Zug – is worth approximately $611.81 billion (CHF 548 billion). 

In comparison, many of the cantons receiving funds, in Switzerland’s French-speaking west feature a more specialized economy. 

For example, the cantons of Vaud and Valais, Jura and Neuchâtel are home to a significant proportion of Switzerland’s farms. 

Neuchâtel and Jura also have economies that are focused towards watchmaking and precision engineering. 

READ MORE: EXPLAINED: Why is Switzerland so famous for watches?

There have been efforts to diversify the economies of these cantons and embrace developing industries, such as the life sciences-focused ‘Health Valley’ and autonomous vehicle ‘Drone Valley’ initiatives, centered on the country’s west but these are still in their early years. 

Cantons set own tax rates

This leads to the role played by tax policy. 

Under Swiss law, cantons can set their rates of taxation – and they’re able to use it to continuously draw an influx of business and new arrivals. 

Zug (22.2%), Nidwalden (24.2%)  and Schwyz (25.3%) can afford to set some of the country’s most competitive individual tax rates, as opposed to Valais (36.5%), Jura (39.0%) and Neuachtel (38.1%). 

While not as wide a gulf, the company tax rates for Zug (11.85%), Nidwalden (11.97%) and Schwyz (14.6%) make them a far more attractive investment proposition than Valais (17.12%) and Jura (16.0%). 

Such competitive rates are possible because these ‘richer’ cantons have a wider economic base, diversified across several sectors.

This ensures greater resilience and a continual draw of new arrivals and enterprises, more so than cantons where one particular industry dominates and is subject to fluctuations from outside factors.

So does it run smoothly?

There is a fine balance to strike in the redistribution formula.

“The greater the support given to resource-poor cantons, the lower their incentive to seek to increase their tax base, and the more the resource-rich cantons have to hand over, the less the incentive to enlarge theirs,” Andreas Stöckli of the University of Fribourg told Swiss Info.

In other words the transfer from cantons that tax-attractive to those that are less tax-attractive needs to be well-balanced.

SHOW COMMENTS