Swiss Voters Approve State-Run Digital ID and Abolish Imputed Rent in Key Referendums

Historic Referendums Reshape Swiss Digital Identity and Property Taxation

In a series of national referendums held on September 28, 2025, Swiss citizens cast their votes on two significant proposals: the introduction of a state-run electronic identity (e-ID) and a comprehensive reform aimed at abolishing imputed rents for homeowners. Both initiatives received public approval, setting a new course for Switzerland's digital infrastructure and tax system.

State-Run Electronic Identity Secures Narrow Approval

The proposal for a state-run electronic identity (e-ID) was narrowly approved by Swiss voters, with 50.4% voting in favor and 49.6% against. This outcome marks a reversal from a previous attempt in 2021, when a similar e-ID proposal was rejected by 64.4% of voters. The key distinction in the newly approved plan is its full management by the state, directly addressing earlier concerns about private companies handling sensitive personal data.

The new e-ID system is designed to be optional and free of charge, with user data stored securely on individual smartphones rather than in a centralized database. It aims to simplify online identification for various services, including banking, government interactions, and age verification. Authorities anticipate the rollout of the new e-ID system to be completed by 2026.

Imputed Rent Abolished in Significant Tax Reform

Swiss citizens also decisively approved a reform to abolish the imputed rental value for homeowners, with 57.7% of voters supporting the measure. The imputed rental value, known as 'Eigenmietwert,' has been a long-standing and often criticized tax, requiring homeowners to declare a theoretical income for living in their own property.

The reform introduces several key changes:

• The abolition of the imputed rental value means homeowners will no longer be taxed on this notional income.
• In conjunction with this, homeowners will generally lose the ability to deduct mortgage interest and maintenance costs from their taxable income.
• To compensate for potential revenue losses, cantons will gain the right to introduce a new property tax specifically on second homes.

This tax overhaul is intended to simplify the tax system and alleviate the financial burden on homeowners, particularly those with low or no mortgages. While the reform is estimated to cost public coffers approximately CHF 1.7 billion ($2.1 billion) annually, the actual financial impact will depend on interest rates and the revenue generated from new cantonal taxes on second homes. The Federal Council is expected to establish the implementation timeline, with full enactment anticipated no earlier than January 1, 2028, to allow cantons sufficient time to adapt their laws and administrative processes.

Looking Ahead

The outcomes of these referendums on September 28, 2025, signify a dual transformation for Switzerland. The approval of a state-run e-ID aims to modernize digital interactions while addressing privacy concerns, and the abolition of imputed rents represents a fundamental shift in property taxation, impacting homeowners and the broader real estate market across the country.