Swiss Accounts: Positive Surprise, but VAT Hike Looms (cross-border guide)

Di Valerie Linc · Published on · Updated on

Bern closes 2025 with a 259 million surplus. But the Federal Council warns: from 2027, cuts and a VAT increase that will also affect cross-border workers are needed.

Contesto

TL;DR - 2025 federal accounts show 259M CHF surplus, reversing deficit forecasts. - Extraordinary tax revenue from Geneva boosted federal finances. - VAT increase of 0.8% planned to address future deficits. - Cross-border workers in Ticino will face higher living costs. ## Key facts - Surplus 2025: 259 million francs - Deficit forecast: 815 million francs - Extraordinary revenue: 1.5 billion francs from Geneva corporate tax - Ordinary revenues: 87.2 billion francs, exceeding estimates by 1.9 billion - Ordinary expenditures: 86 billion francs, exceeding budget by 218 million - VAT increase: 0.8 percentage points - Future deficits: 2 to 4 billion francs annually for 2027-2029 - Impact on workers: Higher cost of living for purchases in Switzerland An unexpected breath of fresh air for the Confederation's finances, but one that hides ominous clouds on the horizon. The 2025 federal accounts closed with a surplus of 259 million francs, a result that completely overturns forecasts of an 815 million deficit. The news, announced by the Federal Council, marks an improvement of over a billion francs compared to the budget. But where does this surprise come from? The government explained that the credit goes to an extraordinary and temporary revenue: a 1.5 billion franc collection from corporate profit tax in the Canton of Geneva. Total ordinary revenues reached 87.2 billion, exceeding estimates by 1.9 billion. However, for the first time since the introduction of the debt brake in 2003, ordinary expenditures also surpassed the budget, settling at 86 billion (+218 million), partly due to an additional credit for the European research program Horizon Europe. This apparent financial calm is, as the Executive itself emphasized, merely the calm before the storm. The structural frame...

Dettagli operativi

The Coming Storm: VAT Increase and Cuts Despite the balanced budget of 2025, the Federal Council has strongly reiterated that federal finances remain in difficulty. Projections for the 2027-2029 period indicate substantial structural deficits, estimated between 2 and 4 billion francs annually. To avoid violating the strict rules of the debt brake, Bern is preparing a two-pronged corrective maneuver that will closely affect all consumers in Switzerland, including cross-border workers. The two measures on the table are: - Relief Package 27: a spending cut program to be discussed by the National Council in the spring session. Its scope is still a matter of political debate. - VAT Increase: the most concrete and directly impactful proposal is an increase in the Value Added Tax by 0.8 percentage points. This hike will serve to finance rising expenditures for the army and security. ⚠️ For a cross-border worker, this increase will translate into a higher cost of living for every purchase made on Swiss territory. From gasoline to a full grocery shop at a supermarket in Chiasso, from a coffee in Lugano to shopping in Mendrisio, every transaction will be more expensive. This will directly affect the real purchasing power of the salary received in francs. Furthermore, the difficult financial situation puts several federal administration digitalization projects at risk, which could face delays, with possible repercussions on the efficiency of public services.

Punti chiave

What Does This Mean for Your Salary? The stability of Swiss public accounts is a pillar for the strength of the franc and, by extension, for job security in Ticino. However, the solutions proposed to maintain it will come at a tangible cost. The VAT increase is, for all intents and purposes, a tax that reduces the net value of what you earn. If your gross salary remains unchanged, your spending power in Switzerland will decrease. 💡 In a scenario of rising costs, it becomes even more crucial to have a precise understanding of your net income and family budget. Knowing exactly how much is left in your pocket after taxes, contributions, and deductions is the first step towards effective financial planning and absorbing the impact of price hikes like the VAT increase. The decisions made in Bern, even if they seem distant, have very concrete consequences that reach the border crossings of Brogeda, Ponte Tresa, and Gaggiolo. For this reason, having a clear picture of your purchasing power is fundamental. Using precise tools like our net salary calculator can help you plan your expenses and understand the real impact of these measures on your family budget. (Source: RSI, 18.02.2026)

Punti chiave

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Frequently Asked Questions
What is the financial situation of the Swiss Confederation in 2025?
The Swiss Confederation closed the federal accounts for 2025 with a surplus of 259 million francs, a result that overturns the forecasts of an 815 million deficit.
What will be the impact of the increase in VAT on the purchasing power of frontier workers?
The increase in VAT of 0.8 percentage points will increase the cost of living in Switzerland, reducing the real purchasing power of CHF salaries, affecting every purchase, from gasoline to basic products.
How will the increase in VAT on the costs of domestic consumers in Switzerland affect?
The increase in VAT of 0.8 percentage points will increase the costs of services such as energy, water and telephony, affecting about 1-2% on monthly bills, increasing the weight of daily expenses for frontier workers.

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