Swiss Voters Approve State-Run Digital ID and Abolition of Imputed Rent Tax

Historic Referendums Shape Switzerland's Digital Future and Tax Landscape

On September 28, 2025, Swiss citizens participated in national referendums, casting their votes on two significant proposals: the introduction of a state-run electronic identity (e-ID) and a comprehensive reform to abolish the long-standing imputed rental value tax for homeowners. Both initiatives received public approval, marking pivotal changes for the Alpine nation. The e-ID proposal passed by a wafer-thin margin, while the tax reform garnered a more decisive majority. Voter turnout for the referendums was approximately 50%.

Digital Identity System Secures Narrow Approval

The proposal for a state-controlled electronic identity (e-ID) was approved by a narrow margin, with 50.4% of voters in favor and 49.6% against. This marks Switzerland's second attempt to implement a national digital identity system, following the rejection of an earlier proposal in 2021. The previous plan faced strong opposition due to concerns over the involvement of private companies in managing sensitive citizen data.

The newly approved e-ID system addresses these concerns by ensuring it will be state-run, optional, and free of charge. Data will be stored exclusively on users' personal smartphones, rather than in a centralized government database, a key revision aimed at enhancing privacy. The implementation is expected to involve a dedicated mobile application, Swiyu, with a planned rollout by 2026. Political scientist Lukas Golder noted that the outcome revealed 'a deeply divided Switzerland,' particularly highlighting an urban-rural split, where urban areas generally showed stronger support for the e-ID. Opponents had voiced concerns regarding data protection, the potential for mass surveillance, and fears that a voluntary scheme could eventually become mandatory.

Homeowner Tax Reform to Abolish Imputed Rental Value

In a more conclusive vote, Swiss citizens approved the abolition of the imputed rental value tax, with 57.7% voting in favor. The imputed rental value, known as 'Eigenmietwert' in German, is a unique tax system that has required homeowners to declare a hypothetical income for living in their own property, which is then subject to taxation. This system, introduced in the 1930s, aimed to ensure equal tax treatment between homeowners and tenants.

The reform will eliminate this tax for both primary and secondary residences. However, this change comes with significant adjustments to existing deductions. Homeowners will largely lose the ability to deduct maintenance costs and mortgage interest payments from their taxable income. To offset potential revenue losses for cantons, the reform allows for the introduction of a new, optional property tax on second homes. The implementation of this tax reform is anticipated to take effect around 2028. The vote also revealed a notable linguistic divide, with French-speaking cantons largely opposing the reform, while German-speaking cantons predominantly supported it.

Implications for Switzerland

The dual approval of these referendums signifies a significant step in Switzerland's ongoing efforts to modernize its digital infrastructure and streamline its taxation system. The e-ID aims to simplify online interactions with public and private services, while the abolition of the imputed rental value concludes decades of debate over a contentious tax, reshaping the financial landscape for homeowners across the country. Both decisions reflect the direct democratic process inherent to the Swiss political system, where citizens directly influence national policy through popular votes.