Simple Guide: New Immigrant Tax in Switzerland

Switzerland’s population is growing, mostly because of immigrants. Some political parties want new rules for immigration. On September 2, the president of FDP. The Liberals supported a new tax for immigrants. Here’s what you need to know.

What Is the New Immigrant Tax?

Thierry Burkart, the FDP president, said he supports a new tax for immigrants. The government suggested this tax in July. It would apply to people from outside the EU and EEA who want to live in Switzerland. The tax would be paid by the employers who hire these people. The fee could be a one-time payment of half a year’s salary or a yearly fee between 5,000 and 30,000 francs.

Why Is This Tax Suggested?

The tax idea came after a 2014 initiative called Against Mass Immigration. The tax aims to control the number of new immigrants without hurting Switzerland’s relationship with the EU. The government sees the tax as a compromise that might satisfy those who want fewer immigrants while keeping good ties with the EU.

How Would the Tax Money Be Used?

Supporters say the tax would help limit immigration to jobs that are most needed. The money collected could be used to support public services like schools, hospitals, and housing. Thierry Burkart said companies should consider both the benefits and costs of hiring workers from abroad.

Who Opposes the Tax?

Not everyone agrees with the new tax. Employers and workers’ groups think it could make it harder to find workers in Switzerland. An expert from Economiesuisse said that skilled immigrants are important for the Swiss economy. Some people also argue that immigrants already pay more in taxes than they receive in benefits. Many members of parliament also oppose the tax, including the Social Democratic Party, Green Party, and Centre Party. Even the SVP, which supports the tax, still prefers their original plan.

The government is working on the details of the tax, which should be ready for parliament in spring 2025.