Switzerland Tax Reform Package II
The Swiss parliament approved a plan in June 2026 to raise the standard VAT rate to 8.5% to support a new 13th monthly state benefit, contingent on a November 2026 referendum and anticipated to take effect in 2028. As of July 4, 2026: Lawmakers have agreed to this increase, following a previously postponed rise to 8.8%, with the standard VAT rate last increased to 8.1% on January 1, 2024. Finance Minister Karin Keller-Sutter has reportedly set aside economists' proposals for a real estate profit tax in favor of the VAT increase. Additionally, Switzerland's parliament approved Tax Reform Package II in June 2026, abolishing the imputed rental value system and introducing cantonal taxes on second homes, with new rules expected no earlier than 2028.
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July 2026 — 2 developments
Switzerland Parliament Approves VAT Rate Hike to 8.5% for State Benefit
The Swiss parliament approved a plan in June 2026 to raise the standard VAT rate to 8.5% to support a new 13th monthly state benefit. This increase is contingent on a referendum in November 2026 and is anticipated to take effect in 2028 if approved. Economists had previously proposed taxing real estate profits as a more advantageous alternative to a VAT increase, a suggestion reportedly set aside by Finance Minister Karin Keller-Sutter.
Swiss Lawmakers Agree on VAT Hike to 8.5% from 2028
Swiss lawmakers have agreed to increase the standard VAT rate to 8.5%, with the reduced rate on accommodation services also increasing, expected to apply from 2028. This follows a previously planned but postponed increase to 8.8%. The standard VAT rate was last increased to 8.1% on January 1, 2024.
June 2026 — 2 developments
Swiss Parliament Approves Tax Reform Package II with New Housing Tax Measures
Switzerland's parliament has approved Tax Reform Package II, which abolishes the imputed rental value system and introduces cantonal taxes on second homes. This reform, approved by voters in September 2025, aims to simplify taxation and curb incentives for debt, with new rules expected no earlier than 2028.
Switzerland Delays VAT Hike for Pension Funding to 2028 Amid Tax Reforms
Switzerland's planned increase of the standard VAT rate from 8.1% to 8.8% to fund pension payments has been delayed until January 2028. Finance Minister Karin Keller-Sutter has rejected a real estate profit tax proposal, favoring other tax policies.
February 2026 — 3 developments
Economic Experts Recommend Federal Real Estate Gains Tax; Finance Minister Keller-Sutter Ignores Proposal
Economic experts have recommended that the Federal Council tax profits from real estate sales, similar to how municipalities and cantons already do. They argue that a property gains tax would be economically preferable to increasing other taxes and could generate significant annual revenue for the federal government. Finance Minister Karin Keller-Sutter is reportedly ignoring this alternative proposal in favor of increasing the Value Added Tax (VAT).
Federal Council plans VAT increase after property gains tax rejection
Following the rejection of the federal property gains tax, the Federal Council plans to increase Value Added Tax (VAT) instead.
Finance Minister Keller-Sutter Rejects Federal Property Gains Tax Proposal
Finance Minister Karin Keller-Sutter officially rejects the federal property gains tax proposal, despite its potential for generating billions in revenue. She cites concerns from cantons and the real estate industry regarding higher costs for developers and buyers.
January 2026 — 1 developments
Switzerland proposes temporary VAT hike to fund military revamp after property gains tax rejection
Switzerland is proposing a temporary 0.8 percentage point increase in its value-added tax (VAT) for ten years, starting in 2028, to finance an estimated 31 billion francs for a military revamp. This plan follows the rejection of a federal property gains tax.
December 2025 — 1 developments
Swiss voters reject inheritance tax initiative; Finance Minister Keller-Sutter welcomes decision
Swiss voters overwhelmingly reject a proposed federal inheritance tax initiative. Finance Minister Karin Keller-Sutter welcomes the outcome, stating that Switzerland already possesses a fair tax system and that the rejection maintains the country's attractiveness as a business location.
November 2025 — 1 developments
Federal Experts Propose Property Gains Tax as Alternative to Consumption Taxes
Federal experts finalize and present their formal recommendation for a federal property gains tax, proposing it as a viable and high-revenue alternative to increasing value-added or consumption taxes.
August 2025 — 2 developments
Swiss divisions deepen over proposed abolition of imputed rental-value tax
Public and political divisions deepen over the proposed abolition of the imputed rental-value tax, highlighting ongoing debates on real estate taxation and its impact on homeowners and tenants in Switzerland.
Finance Minister Keller-Sutter Backs Abolition of Imputed Rental Value for Federal Tax
Finance Minister Karin Keller-Sutter, representing the Swiss government, publicly supports parliament's proposal to abolish the imputed rental value for federal tax purposes, signaling a move to reduce certain real estate tax burdens.
July 2025 — 1 developments
Federal experts and politicians explore property-related tax reform options
Discussions within federal expert circles and political spheres likely begin to explore various tax reform options, including potential new federal revenue streams from property-related taxes, as alternatives to existing tax structures.
August 2024 — 1 developments
Left-wing proposal for 50% federal inheritance tax sparks debate in Switzerland
Public debate intensifies around a left-wing proposal for a 50% federal inheritance tax on large fortunes, sparking concerns among the wealthy and business owners in Switzerland.
January 2023 — 1 developments
Karin Keller-Sutter assumes office as head of Federal Department of Finance
Karin Keller-Sutter assumes office as the head of the Federal Department of Finance, positioning her at the forefront of Swiss federal tax policy decisions.