The central bank holds at zero, tax brackets move with prices, and the road to citizenship stays long.

The week

The Swiss National Bank keeps its policy rate at 0 percent

On 24 September the SNB left its policy rate at 0 percent. It expects inflation of 0.7 percent this year and 0.8 percent in 2027 and 2028, and remains willing to act in the currency markets if needed. For savers, near-zero rates continue; for borrowers, Saron-linked mortgage rates stay low. The next assessment is on 10 December.

Source: Swiss National Bank

Federal tax brackets and deductions rise with inflation from 2027

To offset 0.47 percent of inflation, the direct federal tax is adjusted from tax year 2027. The deduction for third-party childcare rises to CHF 25,900 per child, the deduction for professional training to CHF 13,100, and married couples start paying federal tax from CHF 29,900 of taxable income. You will see it in the return you file in 2028.

Source: Federal Department of Finance

Parliament rejects the initiative for faster naturalisation

The Council of States voted 34 to 9 against the Democracy Initiative, without a counter-proposal, after the National Council had also said no. The initiative would allow naturalisation after five years of legal residence instead of ten, with A2 language skills and a clean record. The people will still vote on it; the date is not yet set.

Source: IamExpat Switzerland

Two federal initiatives on Sunday's ballot

On 27 September Swiss voters decide on the initiative to write neutrality into the constitution and on the initiative for secure food. In Vaud there is also the cantonal vote on a 12 percent tax cut. Update, 15 October 2026: both federal initiatives were rejected by more than 70 percent and in every canton; Vaud accepted its tax cut. See Week 40.

Source: admin.ch

Zurich's cantonal parliament rejects a right to housing

The cantonal parliament turned down a proposal to write a right to housing into Zurich's constitution. Housing in the canton stays scarce, and for now the political answer is building and non-profit housing at city level rather than a new constitutional right.

Source: The Local Switzerland

This week if you're arriving

• If you are deciding between a fixed-rate and a Saron mortgage, the SNB's hold at 0 percent is one input, not the answer. Compare offers from several lenders and read the early-exit terms.
• Keep receipts for childcare costs from your first year. The deduction is large, and you need the paperwork when the first tax return arrives.
• Naturalisation takes ten years of residence under federal law, plus cantonal and communal rules. Keep every old permit card and address record from day one.

City in focus: Zurich

• The city's 2027 budget keeps the municipal tax rate at 119 percent and plans CHF 1.88 billion of investment.
• Zurich rose to 10th place, from 16th, in the Oxford Economics Global Cities Index 2026.
• The Knabenschiessen shooting festival took over the Albisgüetli from 12 to 14 September, and Monday was school-free in the city.
• If you think the trams are full, wait for the first wet Monday of October. Leave ten minutes earlier and take the one behind.

A quiet note

Ten years is a long time to wait to belong on paper. Many people who arrive here find that the paper is the smaller part. The bigger part is the baker who starts to say your name, the neighbour who lends you a ladder, the colleague who invites you to the hut. None of it needs a vote. It needs you to stay long enough in one place for people to notice that you stayed.