Naturalised citizens will pay military tax, top court rules

Foreign men in Switzerland who obtained Swiss citizenship in their 30s will have to pay the military exemption tax — set at 3 percent of the taxable income per year, or at least 400 francs — the Federal Court has ruled.

This obligation puts them on equal footing with other Swiss men who are exempted from the required military or civil service, which usually begins at the age of 18, because they are deemed unfit for service.

Those naturalised after 30 are no longer conscripted, but are subject to a military exemption fee until they reach the age of 37.

READ ALSO: Naturalised Swiss citizens to pay ‘army tax’ if they skip military service 

A new charge will place further financial burden on Zurich’s homeowners

Because Zurich is re-evaluating all properties, homeowners will have to brace themselves for significantly higher tax bills from 2027, cantonal authorities said. 

This step was triggered by two court rulings, according to which many properties in the canton were undervalued. The last estimate took place in 2009, but real estate prices have soared by an estimated 50 percent since then.

Therefore, property tax values are to increase by an average of 48 percent, while  imputed rental values for single-family homes will rise by an average of 11 percent and for apartments by 10 percent.
 
READ ALSO: Zurich homeowners to pay significantly higher property taxes 

Two proposals are likely to fail at the ballot box

The Swiss will head to the polls on Sunday, but the latest survey is not optimistic about the outcome of the two initiatives brought to the ballot box.

Both the second-pillar pension reform and wider protection of the country’s biodiversity look set to be defeated, a recent voter survey indicates.

On the first issue, 75 percent of voters are expected to turn down the measure.

The gap between supporters and opponents is much narrower for the pension initiative: only 47 percent of voters favour this project, the survey showed.

READ ALSO: How will Switzerland vote in key pensions and nature referendums? 

‘Marriage’ tax initiative is stalling in the parliament

In February 2024, the Federal Council sent a proposal to the parliament, calling for a reform of the longstanding legislation by allowing separate, rather than joint, taxation of spouses.

In August, the National Council’s Economic Committee has narrowly approved this move.

However, the progress is at a standstill because MPs can’t agree among themselves on whether individual taxation is really best.

While some argue that the reform would “introduce tax fairness,” others point out that it would result in a loss of tax revenue in public coffers and create a “bureaucratic monster.”

READ ALSO: Is Switzerland moving closer to new tax system for married couples? 

Will foreign residents have to pay ‘army’ taxes?

Switzerland’s military needs to increase its budget in order to improve its operational capability.

The parliament is currently debating where this money should come from, and deputies from the right-wing Swiss People’s Party (SVP) came up with a potential revenue source.

They are calling for foreign men who live in Switzerland to pay a so-called “security tax,” to be used for the needs of the army.

But while some MPs are on board, others point out that foreign nationals residing in Switzerland already pay taxes, which are used to  finance the army, and should not be subjected to further fees.

READ ALSO: Calls in Switzerland for foreign residents to help finance Swiss army 

Switzerland sets priorities for the new year

President Viola Amherd unveiled the Federal Council’s goals for 2025.

She said Switzerland will focus on furthering bilateral relations with the European Union, strengthening the country’s social policy — especially in terms of the state pension — and continuing reforms as well as cost-cutting measures in the healthcare sector.

The government will also prioritise securing its economic prosperity, developing digital technology, promoting national cohesion, and protecting the environment.

READ ALSO: What are Switzerland’s top priorities for the coming year?