2024: New Year, new Swiss laws

The authorities now have more options for monitoring internet and telephone data Keystone / Matthias Balk

Pension reforms, stricter internet and phone surveillance, and more time off for grieving parents: various changes to Swiss laws and regulations came into force on January 1. Here’s a selection.

Electric cars: Electric cars are now subject to motor vehicle tax, just like other cars. The tax exemption for electrically powered cars that has been in place since 1997 has been cancelled. This means that electric cars will be subject to the normal tax rate of 4% on cars used to transport people or goods. The tax will be levied on the import price, not the retail price. Between 2018 and 2022, the number of electric cars imported each year increased from around 8,000 to over 45,000.

Breast cancer: Compulsory health insurance will now cover the costs of precautionary breast and ovary removal for certain high-risk genes. Until now, both procedures were only reimbursed in the presence of two specific genetic mutations.

Pension revision: The first part of the pension revision has come into force. Partial early withdrawal or partial deferral of the pension is now possible for everyone, allowing a gradual reduction in gainful employment. Anyone who works for a salary beyond the reference age can now choose whether to pay pension contributions on their entire income or not up to the exemption threshold.

Film: Online and television services in Switzerland must invest 4% of their Swiss turnover in Swiss filmmaking and adhere to a quota of at least 30% of European films. This is stipulated by the so-called Lex Netflix, which Swiss voters approved in May 2022. As a result, local filmmakers and Switzerland as a film location will have an estimated CHF18 million ($21.1 million) more per year at their disposal, primarily for series and audiovisual formats.

Internet: People resident in Switzerland or with Swiss citizenship can now acquire a domain name ending in .swiss. Sole proprietorships without an entry in the commercial register, such as architects or craftworkers, can also obtain a .swiss domain name.

Climate: Large companies in Switzerland must publish mandatory climate reports. This applies to public companies, banks and insurance companies with at least 500 employees and a balance sheet total of CHF20 million or more or a turnover of over CHF40 million. The reports must be publicly accessible for at least ten years. Companies must account for the financial risk they take with climate-relevant activities. They must also disclose the impact of their activities on the climate. Finally, the reduction targets for direct and indirect greenhouse gas emissions must be outlined, along with the plans for implementation.

Consumer loans: The maximum interest rate for consumer loans will rise from 11% to 12% for cash loans. The government is also increasing the maximum interest rate for overdrafts, for example for credit cards, from 13% to 14%.

Corporate taxes: Large internationally active companies will be taxed at a rate of at least 15% in Switzerland from the 2024 tax year. The government is implementing the minimum tax agreed by the OECD and the G20 countries for certain corporations. The minimum tax affects groups that generate an annual worldwide turnover of more than €750 million (CHF707 million) – around 1% of companies operating in Switzerland.

Kosovar nationals: Kosovars can enter the Schengen area without a visa for stays of up to 90 days. The exemption from the visa requirement also applies to Switzerland. The prerequisite is possession of a biometric passport. A visa is still required to take up gainful employment in Switzerland.

Charging networks: Uniform charging protocols and interfaces for mobile phones and other wireless devices will be introduced in Switzerland using the widely used USB-C standard. This also applies to other devices with wireless components such as tablets, digital cameras, laptops, headphones and e-readers. Manufacturers must inform consumers on the packaging and in the accompanying information about the charging properties of the device and whether a charger is included. They are also obliged to offer devices without a charger in their product ranges.

VAT: Consumption in Switzerland has once again become more expensive. VAT on goods and services is being increased from 7.7% to 8.1%. The reduced rate for food will also rise from 2.5% to 2.6%.

Surveillance: The authorities have more options for monitoring internet and telephone data. It will be easier to trace anonymous bomb threat calls in Switzerland and locate people at risk. Law enforcement authorities should also be able to access data more quickly. Until now, providers of telecommunications services had one day to respond to a request from the authorities. This period will be reduced to six hours.

Post: The Swiss Post is increasing prices for letters and parcels. A and B letters will each cost CHF0.10 more (CHF1.20 and CHF1 respectively), while Priority and Economy parcels will cost CHF1.50 more.

Death: In the event of the death of a parent after a birth, the surviving parent is now entitled to longer maternity or paternity leave. If the child’s mother dies within 14 weeks of the child’s birth, the spouse is entitled to 14 weeks’ leave in addition to the two weeks’ paternity leave. In the event of the death of the father or the mother’s wife within six months of the birth of the child, the mother is also entitled to two additional weeks’ leave.