A prominent economist in Switzerland has created a proposal that would see immigrants pay a 50.000 franc fee to claim a residence permit. Reiner Eichenberger argued his plan would help reduce migration and give more support to Swiss citizens, while critics have labelled the proposal as discriminatory.

Swiss economist calls for limits on migration

Writing in SonntagsZeitung, Eichenberger argued that the strong rate of population growth is having a profound impact on Switzerland. He noted that the country’s attractiveness as an expat destination has led to high demand, high costs and shortages for land, housing, and services among others, “thereby reducing the quality of life in Switzerland to EU levels.” Indeed, high levels of migration are often blamed for the ongoing housing shortages, especially in Swiss cities.

He argued that current quotas on residence permits are not enough to reduce migration. Given Switzerland’s agreement with the European Union on the free movement of people, he said the country needs a solution that would dissuade new arrivals rather than infringing on the agreements by imposing stricter immigration limits.

50.000-franc migration tax proposed in Switzerland

Therefore, Eichenberger proposed that the country impose a 50.000 franc entrance fee on anyone who wishes to take up residence or a job in Switzerland. Migrants would be required to pay the fee over the course of “several years.” 

To calculate the figure, the economist noted that male Swiss citizens often lose a year of working time to national service. According to him, this delayed start to working life means they lose between 80.000 and 110.000 francs over their working lives compared to expat employees. He estimated that the policy would net the federal government 8,5 billion francs a year, even if it leads to a halving of annual immigration. 

Immigration fees used to provide Swiss children with basic income

Echoing arguments used to propose a “security tax” on non-Swiss men, Eichenberger claimed that the “Swiss would no longer be discriminated against” under the plans. “All people who enter adult life in Switzerland - that is, who either come of age or immigrate as an adult - are required to make a contribution to society equal to the burden that Swiss soldiers have borne up to now."

Eichenberger and FDP politician Fabian Kuhn argued the money could go towards a new policy to support those born in Switzerland. As part of their plans, every child would receive 3.000 francs a year for every year they were resident in Switzerland between ages zero to 18.

This form of universal basic income would mean children who live their entire childhood in Switzerland would have wealth amounting to 65.000 francs. This policy alone is expected to cost between 4,3 and 4,8 billion francs a year.

Swiss migration tax incompatible and discriminatory, opponents argue

Though calls for an immigrant tax in Switzerland continue to grow, many have argued that they are incompatible with Swiss law, discriminatory and ignore the benefits of migration. First, though Eichenberger is convinced that the 50.000 franc immigrant fee is equal to the sacrifice Swiss citizens make as part of national service, it is unclear whether the Swiss government, federal courts or the European Union will see it the same way.

Questions also remain about how such a migration tax could be justified given expats’ dearth of political rights. Speaking against the expat security tax back in September, SP National Councillor Priska Seiler Graf argued such proposals give expats obligations while not being “accommodated at all” when it came to having a say on the proposals that impact them. 

With a quarter of the population set to be retired by the end of the decade, there are also concerns about how a drop in migration would impact the economy and Swiss social security and pension programmes. Indeed, a 2023 report from the State Secretariat for Economic Affairs found that EU and EFTA expats and internationals contribute 27,1 percent of the funding to local social programmes, while only receiving 15,2 percent of total benefits.

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