The idea of an immigration tax in Switzerland is back – this time as part of the parliamentary discussions surrounding the Bilaterals III package between Switzerland and the European Union.
On 18 August 2026, the Political Institutions Committee of the Council of States (PIC-S) completed its review of proposed amendments to the Foreign Nationals and Integration Act (FNIA). While broadly supporting the Federal Council’s proposal, the Committee wants to add an immigration incentive tax that could be activated as part of Switzerland’s safeguard mechanism. For employers, this is a development worth watching closely.
From policy discussion to legislative proposal
The timing is particularly interesting. In May 2026, the Federal Council published a report examining whether Switzerland could introduce an immigration tax. It concluded that applying such a tax to EU/EFTA nationals would be incompatible with the Agreement on the Free Movement of Persons (AFMP), notably because of its prohibition of discrimination (we covered this in a previous article here).
Only three months later, the PIC-S has brought the concept back – but in a different context. Rather than proposing a general immigration tax, the Committee wants the tax to become one of the measures available if Switzerland activates the safeguard clause foreseen under the Bilaterals III framework.
How would the tax work?
Under the Committee’s proposal, the tax would not automatically apply to foreign nationals coming to Switzerland. It could be introduced if the safeguard mechanism is activated due to serious economic or social difficulties associated with immigration.
For EU nationals taking up salaried employment, the tax would be payable by their employer. Adult family members arriving through family reunification could also be subject to the tax.
The measure would also apply to third-country nationals once the safeguard clause is activated.
The Committee argues that the tax would encourage employers to make greater use of the workforce already available in Switzerland. Its proceeds would be redistributed to the population.
A significant legal question remains
The proposal raises an obvious question: if the Federal Council considered an immigration tax for EU nationals incompatible with the AFMP in May, what makes the new proposal legally possible?
The key difference is its connection to the safeguard mechanism. Its compatibility with Switzerland’s obligations towards the EU would therefore depend on the final design of the safeguard clause, the implementing legislation and the circumstances under which the mechanism could be activated.
For now, this remains a proposal – Switzerland has not (yet) introduced an immigration tax.
What should employers take away?
Nothing changes immediately for companies hiring foreign nationals in Switzerland.
However, the discussion has clearly evolved. What was recently examined primarily as a policy concept has now entered the legislative debate surrounding the future Switzerland-EU framework.
If eventually adopted and activated, an employer-funded immigration tax could add a new cost dimension to international recruitment into Switzerland – including recruitment of EU nationals who currently benefit from the free movement framework.
Important questions remain unanswered, including the amount of the tax, possible exemptions, the workers concerned and the threshold for activating the safeguard mechanism.
For employers, the key message is therefore not that an immigration tax is imminent, but that the concept has become considerably more concrete and should now be monitored as part of the Bilaterals III legislative process.
Samuelian Immigration Law will continue to monitor developments and their potential impact on employers and internationally mobile employees in Switzerland.
Article by Ara Samuelian
Samuelian Immigration Law (SIL) can support you all the way and in assessing the potential impact and help you build a strategy.
Get in touch and Contact SIL for guidance or case-specific advice.
Follow our LinkedIn Page and subscribe on our website to receive our newsletter with exclusive content !