With the population of Switzerland continuing to grow predominantly through migration, many political parties have called for new restrictions on immigration. On September 2, the president of FDP. The Liberals came out in favour of an immigration tax on new arrivals. Here’s what the tax would involve and how it would impact you.

FDP announces its support for Swiss immigrant tax

Speaking to the Neue Zürcher Zeitung, FDP president Thierry Burkart threw his weight behind plans for a new immigrant tax. The tax in its current iteration was proposed by the Federal Council back in July, as a response to the No 10 million Switzerland! (Sustainability Initiative) from the Swiss People’s Party (SVP).

While versions of the tax vary, it's likely to apply to new arrivals from “third countries” - citizens from outside the EU and EEA - who apply for residence permits. The tax would be paid by employers offering jobs to expats, and would likely be either a one-off fee of half a year’s salary or an annual recurring fee of between 5.000 and 30.000 francs.

Immigrant tax is seen as a compromise with an SVP referendum

The idea itself was first proposed following the success of the Against Mass Immigration initiative in 2014. It was argued that the migrant tax would help achieve the goals of the referendum - which called for quotas on the number of residence permits issued - without jeopardising Switzerland’s relationship with the EU by imposing strict limits on new arrivals. 

With the Sustainability Initiative also set to be voted on in the future, the government now sees “accompanying measures” like the immigrant tax as a compromise which would satiate the demands of the SVP while not scuppering the country's free movement and trade agreements with the EU.  

Hopes to spend the new tax on public services in Switzerland

The argument for the charge is that it would restrict new arrivals to filling the jobs in the highest demand and would allow the country to spend the immigration tax on supporting public services and pensions, and subsidising housing.

“Companies attract skilled workers from abroad who contribute to prosperity here, but at the same time can also cause costs - if more people come, more teachers, doctors, etc are needed,” Thierry Burkhart argued. “With a tax, it would be up to companies to weigh up these advantages and disadvantages.” 

New tax opposed by Swiss employers and employees

While the proposal may be gathering steam, employers and employee associations have baulked at the plans, with the former arguing back in July that it would make Switzerland's chronic worker shortages worse. Business umbrella organisation Economiesuisse expert Rudolf Minsch told the Tages-Anzeiger that “It is precisely qualified immigrants who are employed in the Swiss labour market who bring great benefits to the Swiss economy.”

More fundamental concerns about the burden expats have on the country were also questioned, with Minsch arguing that expats already pay more into the Swiss state than they receive in benefits. The proposal also faces stiff opposition from parliament, with Social Democratic Party co-president Cédric Wermuth declaring back in July that “punishing the people who come and help us replace missing skilled workers seems very unfair to me."

The Green, Green Liberal and Centre parties have also voiced their opposition, and while the SVP would be in favour of the plan, its parliamentary group leader Thomas Aeschi told reporters that they would still favour their referendum over the compromise.

The immigrant tax is currently being drafted by the Federal Council and is expected to be submitted to parliament in the spring of 2025.