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Switzerland, where only 36% of the population own their homes, is sometimes referred to as a nation of renters. So when rents rise, as they have recently, the subject becomes political. On Wednesday, Switzerland’s Federal Council announced that it was looking for ways to temper short term rent increases. © Yiu Tung Lee | Dreamstime.comAcross Switzerland, 64% of the population was renting their homes in 2020. The percentage of people renting ranged from 85% in Basel-City to 42% in the...

This week, the newspaper Tages-Anzeiger reported that Switzerland’s federal government is working on reducing the tax free allowance granted to people returning home from a shopping trip abroad. The amount is currently CHF 300 per person per day. The government is looking at cutting this allowance to CHF 150 per person per day, according to the newspaper. Photo by Andrea Piacquadio on Pexels.comThe value of any goods exceeding the allowance is subject to Swiss VAT, currently 7.7%. Within...

A report by UBS predicts average Swiss salary growth of 1.9% in 2024, set against expected inflation of 2%. If correct, real pay will be slightly lower by year end than it was at the start of the year. Photo by cottonbro studio on Pexels.comThe bank said that rising health insurance premiums will mean many workers face a loss of purchasing power in the coming year. At the same time a robust labor market and excess savings are supporting consumption. While labour shortages have eased...

Switzerland, like the UK, charges households an essentially unavoidable broadcasting fee. The money raised is used to fund public news and entertainment. However, the fee is divisive. Some view it as a necessity to ensure the public is well informed. Others see its unavoidable nature as an affront to personal liberty. A public vote to eliminate the fee in 2015 was rejected by 71.6% of voters. However, bringing the fee to the political forefront focused minds on its cost, currently CHF 335....

From 1 January 2024, electric vehicles (EV) will be taxed like their petrol and diesel equivalents, announced Switzerland’s Federal Council this week, reported RTS. Photo by Kindel Media on Pexels.comCars imported into Switzerland suffer a 4% tax. EVs are currently exempted from this tax. From the beginning of next year all cars including EVs will be taxed. The exemption, introduced in 1997, was designed to increase the rate of uptake of electric cars. However, on Wednesday the Federal...

With the ever rising cost of of Swiss healthcare, the government has been hunting for savings. This week it announced that it has ordered price cuts on 350 medicines from 1 December 2023, reported RTS. © Francisco Javier Zea Lara | Dreamstime.comOn average the drugs on the list will cost 10% less and deliver an overall expected saving of CHF 120 million a year. This comes out at around CHF 14 per resident, not a particularly significant sum when set against an average annual health...

Switzerland’s occupational pensions, known as the 2nd pillar, are feeling the squeeze of lackluster returns and an aging population. This week, the government added to the strain by setting the minimum rate pension managers must pay pension holders at 1.25% for 2024, a 0.25 percentage point rise over last year, reported RTS. Photo by Mikhail Nilov on Pexels.comInevitably, the announcement triggered the ire of both those representing workers, who receive pensions, and those managing the...

Every year, investigativ.ch, an association of investigative journalists, bestows an award on the public figure it deems to have exercised the lowest levels of transparency during the year. This year the award went to Karin Keller-Sutter, Switzerland’s minister of finance, for the secret decision making process surrounding the fire sale of the bank Credit Suisse to UBS, another Swiss bank. The arrangement was backstopped by the federal government, and ultimately taxpayers, and stripped...

Consumer prices increased by 0.1% in October 2023, reported Switzerland’s Federal Statistical Office (FSO) this week. Rising prices in October represent a reversal of the 0.1% fall in September 2023. Photo by Kampus Production on Pexels.comOctober’s rise in inflation kept the annual rate of inflation at 1.7%, 0.3 percentage points below the Swiss National Bank’s (SNB) preferred maximum of 2% – the SNB equates price stability with a rise in the Swiss consumer price index (CPI) of less than...

Every quarter, Switzerland publishes updated spending forecasts for the current year. On 25 October 2023, it raised the 2023 spending forecast by CHF 300 million to 81.6 billion, an increase of 0.4% on the previous quarter, but still below the original budget. Swiss Budget © Marekusz | Dreamstime.comThe revision takes the ordinary budget deficit from an original CHF -700 million to -900 million, a figure 300 million above the late quarterly estimate of -600 million. At the same time,...