Changes in Switzerland in 2027: What Expats Need to Know

1. Pillar 3a limit, AHV pensions and BVG thresholds for 2027

On 2 October 2026 the Federal Council set the new pension figures for 2027. Pensions in the first pillar follow the legal mixed index, an average of price and wage development, and the limits in the second and third pillars are tied to the maximum AHV pension, so they all move together (Federal Council).

Sources: Federal Council for the AHV and contribution figures, and bluewin and Blick for the Pillar 3a and BVG limits.

AHV pensions rise 1.59% on 1 January 2027

The increase is about 1.59%. The minimum pension is CHF 20 a month higher, which is CHF 260 more over a year once the 13th AHV pension is counted. Swiss voters approved that 13th pension in March 2024, and it is paid for the first time in December 2026 (BSV). If you are not near retirement, the numbers still matter: the pension you collect later depends on the contribution years you build up while you work here. The minimum contribution for self-employed and non-working people also rises, from CHF 530 to CHF 541 a year. If you are a freelancer, our guide to freelancing in Switzerland explains how AHV contributions work for you.

The new Pillar 3a maximum for 2027

Pillar 3a is the voluntary, tax-deductible private pension. Employees who are insured in a pension fund can pay in up to CHF 7,373 in 2027. People without a pension fund, such as many self-employed, can pay in up to 20% of net earned income, capped at CHF 36,864. The limits for 2026 stay CHF 7,258 and CHF 36,288, and what counts for the 2026 tax year is what reaches your 3a account by 31 December 2026. Whether a payment lowers your tax bill depends on your tax status. If you are taxed at source, ask your cantonal tax office whether and how you can deduct it, and see our guide to tax at source.

BVG thresholds: who must join the pension fund

In the second pillar (BVG), your employer must insure you once your annual salary from that employer is above the entry threshold, which rises to CHF 23,040. The coordination deduction rises to CHF 26,880. The deduction is subtracted from your salary to get the insured salary, so a higher figure means a slightly lower insured salary for the same pay. Pension funds can insure more than the legal minimum, so check your own pension certificate.

Who receives your Pillar 3a if you die: new rules from 1 June 2027

The Federal Council has also amended the rules on who can inherit Pillar 3a savings. From 1 June 2027 savers get more room to choose. Under conditions, you can move children or an unmarried partner into the first rank of beneficiaries, which matters for couples who are not married and for blended families. The change applies to your savings account or policy, and you will have to put your choice in writing to your 3a provider (Federal Council, UBS, innoVorsorge). Until then, the old order of beneficiaries applies.

2. Federal tax changes for 2027: relief for cold progression

In late September 2026 the Federal Department of Finance adjusted the federal income tax tariff and deductions to offset "cold progression", the effect where inflation pushes you into a higher bracket although your purchasing power has not grown. The adjustment applies from the 2027 tax year, so it first shows up in the tax return you file in 2028 (EFD, Federal Tax Administration circular).

• All tax brackets of the federal tariff are moved up, so the same income is taxed slightly less.
• The deduction for third-party child care rises to CHF 25,900 per child, from CHF 25,800.
• The deduction for work-related training and further education rises by CHF 100, to CHF 13,100.
• Professional expense deductions stay the same, because the rounded amounts do not change.
• Interest rates for the federal tax stay unchanged: 4.0% on late and refunded payments, and 0.0% on advance payments.

The inflation adjustment is small this year, so expect a small saving. It also covers only the federal tax, which is usually the smaller part of a tax bill. Your canton and municipality set their own tariffs and deductions, so look at your cantonal tax office for the 2027 values. Our Swiss tax guide for expats explains how the three levels fit together.

3. Health insurance premiums 2027: up 5.0% to CHF 412 a month

The biggest change for your monthly budget was announced on 29 September 2026. The average premium across everyone insured rises 5.0% (CHF 19.70) to CHF 412 a month, and the average for adults is CHF 487.60 (EDI / BAG). Your own premium depends on your canton, insurer, model and deductible, and your insurer must tell you the exact amount by the end of October.

To switch insurer for 1 January 2027, your written notice must reach your current insurer by Monday 30 November 2026. We compared the cheapest and a typical insurer in every canton in our full guide: Swiss Health Insurance Premiums 2027: The Official Figures. If you are deciding between a low and a high deductible, read Choosing Your Deductible, With a Worked Example.

4. Serafe fee 2027: CHF 312 a year per household

The household fee for radio and television falls from CHF 335 to CHF 312 a year on 1 January 2027, which is CHF 78 per quarter instead of CHF 83.75. The Federal Council plans a further cut to CHF 300 a year from 2029 (BAKOM, UVEK fact sheet). The fee is charged per household and not per person, so flatmates who share one flat pay it once. Our Serafe guide explains who pays, who is exempt and when the first bill arrives.

What changes for businesses

From 1 January 2027 the annual turnover from which a company owes the fee rises from CHF 500,000 to CHF 1.2 million. According to the government, only about one in five VAT-registered companies will then pay, instead of about one in three. A revised tariff with 60 turnover levels instead of 18 is planned for 1 January 2028 and is still in consultation until 27 October 2026 (BAKOM).

Why the cut is happening

The cut was the Federal Council's answer to the "200 francs is enough" initiative, which wanted the household fee at CHF 200. Voters rejected it on 8 March 2026 with 61.9% no votes, and no canton voted in favour (SRF). The planned cuts to CHF 312 and then CHF 300 go ahead.

5. SBB timetable and public transport fares from 13 December 2026

Swiss public transport prices go up and the timetable changes on the same day: 13 December 2026.

Fares: about 3.6% more

The industry raises national tickets and passes by about 3.6% on average, after the federal price supervisor negotiated down a planned 3.9%. The GA Travelcard in second class goes up CHF 100 to CHF 4,095 a year (a planned CHF 200 rise was reduced), the first-class GA goes up CHF 250, and the Half-Fare card costs CHF 5 more a year. SBB says it will sell more saver tickets in 2027 to partly compensate (Bahnonline, Blick). The new prices apply from 13 December, so check the amount when your GA or Half-Fare card comes up for renewal.

Timetable: more direct trains to Italy

SBB's plan for the 2027 timetable is a set of targeted improvements rather than a big expansion. For people who like to travel, the headlines are two direct trains a day in each direction between Zurich and Venice, a daily Zurich to Genoa to La Spezia connection, and new Nightjet trains on the Zurich to Amsterdam night route. On the Lucerne to Zurich to Konstanz line, the IR75 gets more seats between Lucerne and Zurich, but you will have to change trains at Zurich main station to continue to Konstanz (SBB). Check your own commute in the SBB app before 13 December, because individual connections can shift by a few minutes.

6. Driving licence changes in 2027: the VKU course comes first

From 1 January 2027, the traffic-awareness course (VKU, Verkehrskunde course) becomes a requirement before you can register for the theory exam. Until now the course came after the theory exam. The Federal Council decided the change on 19 December 2025 (Federal Council).

• New order: VKU first, then the theory exam, then the learner's licence and the practical lessons.
• New format: the four teaching blocks are spread over four days, with the same total length as before.
• New content: the course now covers driver assistance and automated driving systems, and the theory questions are updated to match (20 Minuten).

This matters to you only if you will sit the Swiss tests. Whether you can exchange your foreign licence for a Swiss one without a theory or practical test depends on the country that issued it. Our guide to driving in Switzerland lists the countries. If you do need the tests, book the course early, because the four-day format makes it harder to fit around work.

7. Swiss ID card, e-ID and ETIAS: what is new and what is delayed

New biometric ID card from 2 November 2026 (Swiss citizens only)

The revised ordinance on identity documents takes effect on 1 November 2026, and from 2 November 2026 Swiss citizens can apply for a biometric identity card. It carries a chip with a facial image and two fingerprints, like the biometric passport. The reason is travel: EU countries have issued only biometric ID cards since 2021, and the new card keeps Swiss citizens able to travel freely in the EU on an ID card. The biometric card is optional, and the non-biometric card stays available for people who only need an ID inside Switzerland. You apply at your cantonal passport office or at a Swiss representation abroad (fedpol, swissinfo).

Do you need it? Only if you hold Swiss citizenship, including dual citizenship. Your Swiss residence permit (B, C, L or G) is a separate card and does not change.

The Swiss e-ID is delayed to 2027

Swiss voters approved the e-ID law on 28 September 2025 with 50.4% of the vote. The launch was first set for summer 2026 and then moved to 1 December 2026. In summer 2026 the Federal Council postponed it again, because new developments in artificial intelligence, including deepfakes, make the online issuing process harder to secure. The supporting trust infrastructure is now planned for the first half of 2027, and no firm launch date for the e-ID itself has been published (e-ID programme, Federal Council).

When it does launch, the e-ID will be voluntary and free. It is meant for holders of a Swiss ID card, a Swiss passport or a foreign national ID card issued by Switzerland, so expats with a residence permit can get one (e-ID Act). Do not expect to use it for anything this year.

ETIAS has not started and has no date

ETIAS is the EU's online travel authorisation for visitors who do not need a visa, such as people from the US, the UK, Canada or Australia. Switzerland takes part as a Schengen country. The EU has not announced a start date, and several travel outlets report that the start has slipped to 2027 (The Points Guy). The planned fee is EUR 20 for an authorisation valid three years or until the passport expires, and applicants under 18 or over 70 do not pay the fee (EU ETIAS FAQ).

Does it affect you? Probably not directly. Holders of a residence permit issued by a Schengen state do not need ETIAS (EU: who should apply). It is the friends and family who visit you from visa-exempt countries who will have to apply once it starts. Tell them to use only the official EU website when the time comes.

8. Housing: the reference interest rate and the end of imputed rental value

Reference interest rate: the next update is 1 December 2026

The mortgage reference interest rate, which decides whether rents can go up or must come down, stayed at 1.25% in the Federal Office for Housing's announcement of 1 September 2026. The office publishes it quarterly, and the next update is due around 1 December 2026 (BWO, Mieterverband). Nobody can predict the direction. If the rate falls and your rent is based on a higher rate, you can ask your landlord in writing for a reduction. Our guide to tenant rights in Switzerland explains how rent changes work.

Imputed rental value is abolished from 1 January 2029

If you plan to buy a home, note that Swiss voters approved the abolition of the imputed rental value (Eigenmietwert) in September 2025. On 1 April 2026 the Federal Council set the date: 1 January 2029. From then on, owners no longer pay income tax on the notional rent of their home, and they lose the deduction for property maintenance costs. Mortgage interest stays deductible only to a limited extent. Cantons may introduce a special tax on second homes at the same time (Federal Council, EFD). Nothing changes for tenants. For buyers it shifts the tax maths, so read our guide to buying property in Switzerland before you decide.

9. Votes and political decisions that affect you

The federal vote on 29 November 2026

The Federal Council put four proposals on the ballot for 29 November 2026 (Federal Council):

1. VAT for the 13th AHV pension. The standard VAT rate would rise by 0.4 points, from 8.1% to 8.5%, from 2028. The special rate for accommodation would rise from 3.8% to 4.0%, and the reduced rate of 2.6% stays. The extra revenue is about CHF 1.5 billion a year, and the Federal Council and Parliament recommend yes (EDI).
2. The fireworks initiative, which would restrict fireworks.
3. The initiative "Yes to fair federal taxes for married couples", which targets the so-called marriage penalty in federal tax.
4. An amendment to the War Materials Act.

Only Swiss citizens vote on federal proposals, but the VAT decision reaches everyone who buys things in Switzerland: the Federal Council estimates the extra cost at about CHF 180 a year for the average household. Some cantons let foreign residents vote on local matters, so check your commune.

Individual taxation from 1 January 2032

Voters approved individual taxation on 8 March 2026, with 54.3% yes. Married couples will then file separate tax returns for federal and cantonal tax. The Federal Council set the start for 1 January 2032, the latest date the law allows, to give the cantons time to adapt (20 Minuten, Blick, swissinfo). It changes nothing for 2027.

Work permit quotas for 2027

Citizens of EU and EFTA countries are not subject to quotas, but people from other countries are. For 2026 the Federal Council kept the quotas unchanged: 8,500 permits for skilled workers from outside the EU and EFTA (4,500 B permits and 4,000 L permits), plus a separate quota of 3,500 for British citizens (2,100 B and 1,400 L) (Federal Council). The quotas for 2027 have not been announced. The Federal Council set the 2025 quotas on 27 November 2024 (Federal Council), so a decision in late autumn is likely. If you apply for a permit from outside the EU and EFTA, see our Swiss work permit guide.

What voters decided earlier in 2026, and what is still open

On 14 June 2026 voters rejected the "No 10-million Switzerland" initiative, which wanted to cap the permanent resident population, with 54.8% no and 13 cantons against, and a turnout of 58.9% (swissinfo). The current rules on immigration and the free movement of persons with the EU therefore stay as they are. The larger package of new agreements with the EU (Bilaterals III) is still in Parliament. A vote date is not final, and reports point to 2027 at the earliest (SRF), so nothing changes yet.

10. Key dates from October 2026 to 2032

11. What to do before the end of 2026

1. Compare your health insurance by 30 November. This is the one item with a hard deadline and a large saving. Start with the 2027 premium guide.
2. Pay your 2026 Pillar 3a before 31 December if you want it to count for this tax year, and check whether you can deduct it given your tax status. The 2026 limit is CHF 7,258.
3. Check your rent around 1 December. If the reference interest rate falls, send your landlord a written request for a reduction.
4. Budget for the January changes. The Serafe bill drops by CHF 23 a year, premiums rise, and your GA or Half-Fare card may cost more from 13 December.
5. Plan driving lessons early. If you will sit the Swiss theory exam in 2027, book the four-day VKU course first.
6. Swiss citizens: decide on the biometric ID card before your next trip, since it is optional and you apply from 2 November.
7. Hosting visitors from the US or UK? Tell them about ETIAS, but only once the EU announces a date.
8. Review your Pillar 3a beneficiaries before 1 June 2027 if you live with a partner you are not married to, or if you have children from an earlier relationship.

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