It is well known that the Swiss are overcharged for nearly everything. However, when products are being sent from a warehouse outside Switzerland one would expect the pre-tax price to be the same. This is rarely the case. The Romande Consumer Federation (FRC) has looked at a number of brands and found unjustifiable price differences as high as 93%.

© Casimirokt | Dreamstime.com

The FRC found an average price difference of +35% on clothing, sportswear, white goods, video games, furniture and consumer electronics when comparing identical products on different geographic versions of the same website.

H&M was ranked highest on the FRC’s naughty step with a +93% pre-VAT price difference over prices charged for the same products in France. These companies are artificially and

Many Swiss car insurance providers plan to substantially raise premiums this year, according to research by RTS. Some customers are already reporting hikes of around 20%.

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According to RTS, most insurers, including AXA, Generali, Helvetia, Postfinance, Zurich and Smile Insurance, are planning to increase their premiums.

Some insurance companies justify the premium increases as necessary to cover rising repair costs. Cars have become more high tech and this is pushing up the cost of repair. Cars are covered in cameras and sensors that are costly to replace.

Other insurers blame inflation. Smile Insurance said it was increasing premiums due to a 16% increase in the cost of spare parts.

Zurich Insurance said its rates had been increased due to

Switzerland has strict zoning and construction laws. Federal land use planning laws (LAT) were first proposed in 1979. Since becoming law they have been through a number of modifications. A successful vote in 2013 tightened zoning rules further. This week, SRF reported on two houses that ended up on the demolition list.

Photo by Minsu B on Pexels.comDespite municipal construction approval, certain homes are on the hit list. One in the canton of Ticino has already been demolished and another in Valais is headed for demolition.

The common thread in both of these cases is Switzerland’s strict Federal land use planning laws (LAT). These federal laws are applied by the cantons. But for decades, some municipalities, particularly in the cantons of Valais and Ticino, interpreted the federal

Every three months the Federal Housing Office (FHO) adjusts the reference rate used to set rents in many rental contracts. If it goes down some renters have the right to request a decrease in rent. This time it dropped 0.25% to 1.50%.

Photo by Susanna Marsiglia on Pexels.comThe reference rate is based on average mortgage interest rates. At 31 December 2024, the average mortgage interest rate was 1.53%, down from 1.63% a quarter earlier. The reference rate rounds to the nearest quarter of a percent. Because 1.63% is closer to 1.75% than 1.5% the reference rate was 1.75% last quarter. Now, becuase 1.53% is closer to 1.5% than 1.75% the reference rate falls to 1.5%.

The new rate came into effect on 4 March 2025. It will stay at this level until the average mortgage rate rises above

To coincide with International Women’s Day on 8 March, The Economist publishes an annual study on the best places to be a working woman across the OECD. This year, Switzerland is ranked 26th out of 29 nations, the same position as last year. Only Japan, Turkey and South Korea rank lower.

Photo by Alex P on Pexels.comThe main reason behind Switzerland’s poor rank is likely well known to most families where both mum and dad work: the high cost childcare.

Switzerland has the highest childcare costs in the OECD. The average cost across the OECD is 14% of the average wage. In Switzerland the average is 49% of the average wage. Nurseries are expensive and pay for experienced nannies can range from around CHF 40,000 to CHF 80,000 a year depending on location. Nannies cost more in Zurich,

Switzerland’s consumer price index (CPI) fell by 0.1% in January 2025. Across 12 months inflation was +0.4%, reported the Federal Statistical Office (FSO). Annual inflation at the end of January 2025 is the lowest it has been since April 2021 when it was +0.3%.

© Rochu2008 | Dreamstime.comWhile many nations, such as the UK and the US, are struggling to rein in inflation, Switzerland is going against the grain.

In the US annual inflation rose to 3% at the end of January 2025 and in the UK it reached 3.9%, the highest it has been in 10 months.

Even in Japan, where inflation has long been largely absent, prices are rising. Inflation data released on Friday showed core prices in Japan were up 3.2% across the last 12 months.

After climbing to a peak of 3.5% in August 2022, Swiss

In the very early days of skiing, checking whether skiers had valid ski passes was hit and miss. However, today, with modern technology it has become easy. According to a report by SRF, the ski resort of Verbier catches an average of three to four people a day passing through the turnstiles with a ‘borrowed’ ski pass. Every year the resort catches around 500 cheats and issues fines of more than CHF 100,000.

The resort has cameras next to the turnstiles. These cameras allow real time photos to be compared to ones stored in a database associated with each pass. Ski passes are personal and non-transferable. When the system finds a photo mismatch an inspector intervenes and pulls the culprit aside. François Micheli, one of the inspectors at Verbier says he sees the same reactions when

Relative to the price of many things, the price of milk in Switzerland is low. A litre of milk in a Swiss supermarket typically costs between CHF 1.50 and CHF 2.00. Plant milk alternatives often cost close to CHF 3.00. Of the retail price paid for milk only 70 cents makes it into the pockets of dairy farmers.

Milk Switzerland © William Bode | Dreamstime.comThis week, dairy producers in Zurich announced the creation of an association to set a higher price. The current price of 70 cents is unacceptable and puts many farmers at risk, said a representative. The group is calling for a minimum price of CHF 1 per litre. The cost of production is around CHF 1, leaving farmers to live off what is left of the farm subsidies they receive.

Between 2008 and 2022, the number of Swiss dairy farms

The latest figures from the Federal Finance Administration (FFA) show that Swiss taxpayers paid more income tax than any year since 2008, reported RTS. The average rate of cantonal and municipal tax paid reached 19.6% of income. This percentage is in addition to federal taxes and payroll taxes.

© Bigpressphoto | Dreamstime.comThe rate of tax paid ranged from 12% in the canton of Zug to 25.6% in the canton of Vaud. At 25.5%, Geneva was second. The average rate rose in half of cantons and fell in the other half.

The highest taxed cantons were Vaud, Geneva, Bern, Neuchâtel and Fribourg. The lowest were Zug, Schwyz, Uri, Nidwalden, Obwalden and Glarus. Zurich was below the average.

For companies, the average rate was 9.1%. Valais (20.5%) and Ticino (16.8%) had the highest company

Finding a place to live in Switzerland is increasingly difficult. Scammers have noticed and are cashing in on the desperation experienced by some seeking a place to live, reported the National Cyber Security Centre (NCSC), a federal government agency.

A scam ad on a property listing website for a four-and-a-half room apartment in the canton of Zurich for only CHF 1100 per month.Across much of Switzerland housing vacancy rates are less than 1%. In the cantons of Zug and Geneva rates are below 0.5% – see rates for 2024 here. This makes finding a place to live very difficult and highly competitive. Stiff competition for housing can lead to desperation, a sentiment that scammers like to take advantage of.

This week the NCSC said it has been receiving an increasing number of reports of

Electricity prices in Switzerland are set for a shake up. Prices paid for electricity put into the grid are falling fast in some parts of the country, reported RTS. From 2026, these prices will be adjusted every quarter, rather than once a year. This will add further uncertainty to prices and the investment case for solar panels.

Photo by William Mead on Pexels.comThe changes flow from a new set of laws accepted in a referendum in June 2024. The new law will in many cases usher in lower prices for electricity injected into the grid by those with solar panels. For some this may make solar panels a challenging investment.

In the canton of Vaud, the price paid for injected electricity has already fallen from 17.6 cents per kWh to 10.15. The margin between what Romande Energie charges

Authorities in several Swiss cantons are gearing up for a sharp rise in the number of bankruptcies this year, possibly double the number in 2024, reported SRF.

Bankrupt © Tatyana Gladskikh | Dreamstime.comSome cantons are employing new staff to deal with the sharp rise, which is partly due to a change in the rules. Many companies on the edge of bankruptcy are kept alive by the forebearance of cantonal and municipal creditors.

Unsurprisingly, the public sector is the largest creditor in Switzerland. These debts are mainly unpaid taxes, interest and penalties.

A new law that came into force on 1 January 2025 requires insolvent companies to be liquidated to pay outstanding balances owed to public creditors.

Insolvent companies owe more than they own. Forcing them to liquidate

Currently, it is impossible for individuals to legally escape their debts in Switzerland, even when they have no chance of ever paying them back. Some find themselves trapped in debt for the rest of their lives. This week, the Federal Council unveiled a new legal procedure that will offer some heavily indebted people a second chance, reported RTS.

Photo by Mikhail Nilov on Pexels.comAs an increasing number of people in Switzerland find themselves stuck in a debt trap, political pressure has mounted to find a solution. One study estimates that around 6% of the population have defaulted on a debt, which can be the beginning of a stressful downward spiral into a debt trap.

These people often live on welfare payments and suffer poor health, which adds to health care costs. Some also

Since the beginning of the year, a new step has been added to buying fresh fruit and vegetables in Swiss supermarkets. Previously, the produce went on the scales, the relevant number was entered, a button pushed, and a price sticker produced. Now there’s an extra step: a bag choice must be made. What is going on?

Swiss broadcaster RTS asked some supermarket customers about the change. Most seemed slightly confused by the question and thought the change might be an ecological initiative aimed at reducing the use of single-use paper and plastic bags.

More attentive customers could quickly rule out a new charge for bags. By weighing a bunch of bananas twice, once after selecting a bag and once after selecting no bag you will see there is no extra charge for the bag. If you look

This week, the shut down of The Body Shop in Switzerland was announced, reported SRF. The brand’s 33 remaining shops will close in May 2025.

Body Shop © Hermin Utomo | Dreamstime.comThe Body Shop Switzerland is a franchise owned and operated by the Coop supermarket group. Coop has said that it will not extend the franchise contract, which ends in May 2025. The Body Shop brand’s market positioning is no longer unique, said the group.

The Body Shop, which was founded in 1976 in Brighton, England has been struggling for years. It has been sold several times, and in many countries it has faced bankruptcy. Anita Roddick, the founder, sold the business to L’Oreal in 2006, which sold it to Natura & Co in 2017, which then sold it to the Aurelius Group in 2022. Each time it was sold the

This week, modelling published by the Zurich Office for Economic Affairs, shows a significant shortage of workers emerging in the canton by 2050.

Photo by Valentin Angel Fernandez on Pexels.comWithin 25 years, Zurich will have tens of thousands of workers less than it needs, despite a growing population. The modelling shows that as more people retire from the workforce than enter it, a gap will open up. According to the authors, immigration will not solve the problem because the shift will be too fast and too significant.

In 60 years, birth rates in the canton have dropped from 2.7 to 1.3. By the 2040s, those born today will be entering the workforce in that decade and there will not be enough of them. The gap between those who leave the labour market and those who enter it is

In 2023, Swiss voters accepted a plan to provide subsidies to replace oil and basic electric heating with cleaner more efficient heating, such as electric heat pumps. The plan involved spending CHF 200 million a year on such incentives over a 10-year period starting on 1 January 2025. However, Switzerland’s federal parliament decided in December 2024 to cut the quantum of the subsidies in 2025 by one quarter, reported RTS.

Photo by alpha innotec on Pexels.comThis belt tightening by parliament has been severely criticised by politicians concerned about the environment who point out that the cut is also an affront to the democratic will of Swiss voters.

The Federal Council has said it is difficult to maintain all of these subsidies given the negative state of Switzerland’s public

The Swiss National Bank (SNB), Switzerland’s central bank, has a narrow role: to ensure price stability, which means managing inflation. Sometimes in the course of this task it generates a profit. For the year ended 31 December 2024, the SNB made a profit of CHF 80 billion, of which CHF 3 billion will be paid to federal and cantonal governments.

© Tamer Adel | Dreamstime.comFor many years, the SNB reliably paid a share of its profits to the government. The government, particularly those at a cantonal level, had become used to a regular annual revenue boost by the SNB. However, in 2022, that changed. The SNB made a significant loss. In 2022, the SNB lost CHF 132 billion. With this loss the distributions stopped, much to the chagrin of those managing government finances.

Central banks

Until 31 December 2024 it was possible to enter Switzerland with CHF 300 of shopping per person per day without paying Swiss VAT. From 1 January 2025, the limit is CHF 150 per person per day.

Carrefour © Viorel Dudau | Dreamstime.comThe Federal Council decided in October 2024 to cut the tax-free limit, despite negative reactions from many consumers and consumer associations.

Politicians in some of the border cantons, St. Gallen and Thurgau in particular, have long lobbied for a reduction in the daily tax-free allowance. One politician in Thurgau was pushing for the daily tax free limit to be cut to CHF 50 and would prefer it to be zero. Retailers in these regions are forced to compete with cheaper imported goods and don’t like the competition.

Many consumer associations are

After a stalemate last week, Switzerland’s federal parliament and upper house found a way forward this week on the abolition of imputed rent that both houses could agree on, reported SRF.

Photo by Thomas P on Pexels.comFor more than seven years, the National Council and the Council of States have been discussing how to do away with the imputed rent, which is an amount added to the taxable income of homeowners. Now, after a lot of back and forth, the two houses have finally agreed on a way forward.

One of the sticking points was whether to abolish imputed rent on secondary as well as primary residences. This week, the two houses agreed to abolish it for both and to allow cantons to introduce property taxes on secondary residences to make up the shortfall in tax revenue. In addition,

Every year, the bank UBS publishes its Worry Barometer, a poll that ranks the greatest concerns among Swiss voters. This week, it released the results for 2024. This year’s top concerns are healthcare, environmental and climate protection and retirement provision.

Photo by Marcus Aurelius on Pexels.comPolling for the survey conducted from mid-August to mid-September and included the views of 2,250 voters.

The survey revealed a rise in financial concerns. Financial uncertainty and higher cost of living are reflected in around one-third of the top 10 concerns. This includes the clear number one by a significant margin. in 2024, Swiss voters were most concerned about health issues, health insurance and premiums (48%). Concern for the environment followed in second place (32%),

In 2022, Swiss voted to increase the official retirement age of women from 64 to 65, bringing it into line with the age for men. Later, an error was found in some of the numbers presented to voters to justify the change. After the error was revealed, the Socialist and Green parties asked Switzerland’s highest court to overturn the vote because of these erroneous figures. This week, the court rejected the complaint, reported RTS.

Photo by Matthias Zomer on Pexels.comThe federal court’s judges, consisting of two women and three men, said that the consequences of repealing the vote would be difficult to predict from a legal persective. The increase in VAT to help fund state pensions that was accepted by voters alongside the rise in retirement age is already underway. A refund would not be

A project to end Switzerland’s controversial system of imputed rent was launched more than seven years ago. This week, discussions in Bern suggest the project’s chances of sucess remain narrow.

Photo by Melike Benli on Pexels.comIn Switzerland, anyone who owns a property retained as a primary or secondary residence must add a fictional rent to their taxable income, which is calculated based on the location and size of the property. The system was introduced during the second world war to fund budget shortfalls and has since remained.

Many homeowners come out ahead because mortgage interest and the costs of home maintenance are allowable tax deductions. However, those with small mortgages and new homes requiring little repair often end up paying more tax than they would without

On Thursday, Switzerland’s federal parliament accepted a budget for 2025 by 120 versus 73 votes, reported RTS. Opposing votes came from politicians on the left, who make up a large minority in Switzerland’s lower house.

Photo by Louis on Pexels.comIncluded in the budget were an increase in military spending, cuts to farm subsidies and large cuts to international aid. Increases in state pensions, known as an extra 13th month, will go ahead as planned starting in 2026.

Spending on Switzerland’s military spending will significantly higher. The figure approved by parliament on Thursday is CHF 530 million greater than the number put forward by the Federal Council.

Other changes addopted by parliament include authorising the use of tasers on public transport (132 versus 60 votes) and a

New data show that tourism accounts for 25% of the total traffic on Swiss roads, reported SRF. The Federal Council report shows that leisure and tourism account for 53% of passenger road traffic, with the other 47% made up of commuting to and from work.

Photo by Pixabay on Pexels.comRegular leisure traffic by residents of Switzerland accounted for 27% of road traffic, 12% was locals engaging in tourism, 13% foreigners travelling for tourism and 47% commuting. The remaining 1% is rounding.

Tourism includes everything that is done beyond everyday mobility. This includes holidays, day trips or business trips but not commuting or regular leisure activities such as going to the gym or the cinema.

The report’s authors expect tourist traffic to increase in the future, requiring a plan

In Switzerland, nearly half a million people are struggling with debt. This week, parliament discussed new measures that may offer relief to those unable to dig themselves out of insolvency, reported RTS.

Photo by Mikhail Nilov on Pexels.comIn Switzerland, personal bankruptcy does not extinguish your debts in the same way as it does across much of the rest of world. Instead, once all your assets have been liquidated, any remaining creditors receive IOUs for any money still owed to them. And while it brings an immediate end to debt proceedings and allows you to spend all of your salary, any assets you inherit or accumulate post bankruptcy can still be claimed by creditors.

In addition, it is possible to inherit debt from an insolvent estate under Swiss law. This can generally be

Across much of the developed world, gender pay disparities all but disappear if comparisons are made like for like, looking at individuals doing the same function in the same company, according to Korn Ferry Hay Group research, which looked at 20 million salaries at 25,000 organizations in 100 nations. However, because of job and career differences women continue on average to earn less than men. Recent data published by Switzerland’s Federal Statistical Office (FSO) show this average pay difference was 16.2% in 2022 in Switzerland, down from 18% in 2020 and 19% in 2018.

Photo by Sora Shimazaki on Pexels.comThese analyses are far from perfect. The Korn Ferry Hay Group research is based only on those workers in its database. The FSO spreads the net wider to include organisations

Electric heat pumps have a lower carbon footprint than gas and oil heating systems. They are more energy efficient, and, when gas, coal and oil electricity generation are eventually phased out of the grid, they will be close to emission free. However, the number of heat pumps being installed in Switzerland is falling, and the number of new gas and oil heating systems is on the rise, according to a report by RTS.

Photo by Heiko Ruth on Pexels.comSo far in 2024, Swiss homeowners have installed 12% more gas and oil heating systems than they did in 2023. At the same time the number of new heat pumps installed is down by around a third, according to ImmoClimat.

In some parts of Switzerland, such as Basel and Geneva, it is virtually impossible to install gas or oil heating. However, in

Last weekend, Swiss voters rejected a plan to invest in road infrastructure, partly due to the CHF 4.9 billion price tag. This week, Switzerland’s federal parliament learned the CHF 16.4 billion budgeted for rail infrastructure expansion between now and 2035 could reach more than CHF 30 billion, reported SRF.

Swiss Rail © Ciolca | Dreamstime.comThe cost overrun was first reported by the Neue Zürcher Zeitung and later confirmed by the Federal Office of Transport (FOT). CHF 8.5 billion of the surprise cost relates to new projects such as station conversions, new tracks and parking facilities. The remaining CHF 5.5 billion is a cost overrun related to already planned projects such as the Brütten Tunnel between Zurich and Winterthur.

How, or even if, these additional cost will be

The rising cost of Switzerland’s compulsory health insurance is a major political issue. The government has hatched a plan aimed at improving incentives in the hope it will reduce the seemingly never ending rise in health insurance premiums. However, a number of people sceptical of the plan’s ability to deliver the saving have organised a vote against it, which takes place this weekend.

Photo by Harald Hechler on Pexels.comThe plan is focused on how various healthcare services are paid for. Health insurance premiums only cover a portion of Switzerland’s total healthcare costs. Much of it is paid out of the taxes collected by cantons. According to the federal government the current structure creates perverse incentives that make total healthcare costs higher