Staying on top of tax changes in Switzerland can be a challenge, but the last twelve months have brought some historic shifts. Whether you are a business owner, an expat, or planning for retirement, here is a quick summary of the latest developments you need to know right now.
1. The “Marriage Penalty” Vote is Coming
After years of debate, the finish line is in sight for the so-called “marriage penalty.”
- What’s happening: Parliament has passed the Individual Taxation Act, which would finally tax married couples separately (like unmarried couples), eliminating the higher tax burden many dual-income households face.
- Status: A referendum has been called. Swiss voters will decide the fate of this reform on March 8, 2026.
- Why it matters: If passed, this would be the biggest change to Swiss family taxation in decades, potentially saving thousands of francs for married couples where both partners work.
2. Good News for Wealth Planning: Inheritance Tax Initiative Rejected
In a major relief for high-net-worth individuals and family businesses, Swiss voters decisively rejected the “Future Initiative” on November 30, 2025.
- The Proposal: The initiative sought to introduce a 50% federal tax on estates and gifts exceeding CHF 50 million.
- The Result: The clear “No” vote confirms that Switzerland remains a stable environment for wealth preservation, with inheritance tax remaining under the cantons’ jurisdiction (which generally exempts direct descendants).
3. Business Taxation: The Global Minimum Tax is Here
For large multinational companies, the landscape has officially shifted.
- OECD Pillar Two: Following the introduction of the domestic top-up tax (QDMTT) in 2024, Switzerland implemented the Income Inclusion Rule (IIR) on January 1, 2025.
- Impact: This ensures that Swiss-headquartered groups with global revenues over EUR 750 million pay at least 15% tax on their foreign profits.
- Bonus for Companies: In December 2025, Parliament adopted a rule extending the tax loss carry-forward period from 7 to 10 years, giving businesses more flexibility to offset future profits against past losses.
4. VAT and Daily Life
A few changes effective from January 1, 2025 are already impacting daily transactions:
- Online Platforms: Large online shops are now treated as the “supplier” for VAT purposes. This means you may see Swiss VAT applied more consistently on goods ordered from abroad.
- Reduced Rate: Menstrual hygiene products are now taxed at the reduced VAT rate of 2.6% (down from the standard 8.1%).
- SME Relief: Small businesses now have the option to file VAT returns annually rather than quarterly, reducing administrative paperwork.
5. Retirement: Catch-Up on Pillar 3a
Did you miss a contribution? A new flexibility rule is now in effect.
- Retroactive Payments: As of 2025, if you have a “contribution gap” in your Pillar 3a (private pension), you can make retroactive payments to fill it.
- The Catch: This only applies to gaps occurring from 2025 onwards. You cannot go back and fill gaps from 2024 or earlier, but it is a powerful tool for future tax planning if you take a career break.
💡 Next Step
Review your 2025 tax filing strategy. With the retroactive Pillar 3a option now live and the “marriage penalty” vote approaching, it is a perfect time to simulate how these changes affect your household budget.