Switzerland
Switzerland has low public debt and few rules that steer savings into government bonds, so repression works mainly through near-zero rates. The SNB has held its policy rate at 0% since June 2025, charges a negative rate on sight deposits above a limit, and pays no interest on the 4% minimum reserve banks must hold; from 2015 to 2022 it charged negative rates down to -0.75%. Bank rules give CHF claims on the Confederation a 0% risk weight, and pension rules exempt Confederation debt from the 10% single-debtor limit while capping unhedged foreign-currency assets at 30% by default. A securities transfer tax of 0.15% on Swiss and 0.3% on foreign securities, and a 1% duty on equity issuance (none on bonds), add mild tilts. Real assets face cost-based rent control tied to the mortgage reference rate, Geneva's state-set rents after renovation, and the Lex Koller permit regime for foreign buyers; a tightening that would also cover listed real-estate shares went to consultation in April 2026. A non-interest-bearing stablecoin regime is proposed, and crypto-asset reporting (CARF) is enacted but applies from 2027 at the earliest.
- 10 in force
- 1 enacted
- 2 proposed or under discussion
Measures as of
How the index is built
Each segment is what one category of rules, or the market pillar, adds to the index. The full bar is 100.
- Captive demand 0.0
- Central bank financing 0.0
- Capital controls 3.2
- Rate caps 4.9
- Prudential sovereign bias 3.5
- Directed credit 0.0
- Tax incentives 0.0
- Real asset restrictions 2.8
- Transaction taxes 1.8
- Market pillar 6.1
Index = 80% × rules (20.2) + 20% × market (30.3) = 22.2
The method in plain words
- Rules pillar (0–100). Each of the 9 categories can add up to its weight (the weights sum to 100). A category's intensity grows with every in-force measure in it: one measure counts by its severity factor (0.25 for severity 1, 0.5 for 2, 0.8 for 3), and each further measure closes part of the remaining gap, so breadth adds with diminishing returns: two severity-3 measures give 96%.
- Market pillar (0–100). The average of the market readings below: how negative the real policy rate is, and how much of the government's debt is held by its own central bank and banks.
- Index. 80% rules + 20% market when market data exists, otherwise rules alone. Laws passed but not yet applying count only in the outlook; proposals never count.
The 9 categories
Weight = the most points a category can add to the rules pillar. Intensity = how much of that weight the in-force measures fill. Open a category to see the measures counted; “What is this?” shows the instruments behind it, worldwide and in history.
- Captive demand1 proposed not countedWeight 16Intensity 0%Points 0.0
Mandated holdings of government debt by pension funds, insurers or banks. No in-force measures here. What is this? →
- Central bank financingWeight 16Intensity 0%Points 0.0
Central bank purchases of government debt, yield curve control, direct monetary financing. No in-force measures here. What is this? →
- 1 enacted not countedWeight 16Intensity 25%Points 3.2 → 5.6 once enacted laws apply
Limits on moving money abroad, outbound investment limits, FX controls. What is this? →
Capital controls: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 3.2 - Weight 14Intensity 44%Points 4.9
Caps or ceilings on deposit or lending rates, and administered interest rates. What is this? →
Rate caps: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 2.5 1 of 3 0.25 2.5 - Weight 10Intensity 44%Points 3.5
Prudential rules that favor sovereign debt (zero risk weights, liquidity-buffer rules, leverage-ratio exemptions). What is this? →
Prudential sovereign bias: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 1.8 1 of 3 0.25 1.8 - Directed creditWeight 10Intensity 0%Points 0.0
State-directed lending, credit guidance, and mandates to invest domestically or in state priorities. No in-force measures here. What is this? →
- Tax incentivesWeight 7Intensity 0%Points 0.0
Tax privileges for government bonds, or tax penalties on competing assets. No in-force measures here. What is this? →
- 1 proposed not countedWeight 6Intensity 58%Points 2.8
Rent controls, property curbs, and limits on owning gold, cash or crypto. What is this? →
Real asset restrictions: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 0.9 1 of 3 0.25 0.9 1 of 3 0.25 0.9 - Weight 5Intensity 44%Points 1.8
Financial transaction taxes, stamp duties and similar levies on non-government assets. What is this? →
Transaction taxes: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 0.9 1 of 3 0.25 0.9
Market pillar 30.3 / 100
The average of the readings that have data, worth 20% of the index (6.1 points here).
Real policy rate
40.1 / 100-0.8% · Aug 2026
Policy rate minus inflation. A real rate of +2% or more scores 0; −5% or less scores 100; in between it scales in a straight line. Savers lose most when it is deeply negative.
Policy rate 0% minus consumer price inflation 0.807% (year on year), 2026-08.
Debt held by the central bank and domestic banks
20.4 / 10012.2% of government debt · 2025-Q4
Share of government debt held by the domestic central bank and domestic banks. 0% scores 0; 60% or more scores 100; in between it scales in a straight line.
Central bank 0.6% + domestic banks 11.62% of general government debt, 2025-Q4.
Indicators
Measured data from international sources, alongside the rules above. Real rates below zero mean savers lose purchasing power.
Policy rate, inflation and real rate
Who holds government debt
The liquidation effect follows Reinhart and Sbrancia: with a negative real rate, about −(real rate × debt) of GDP moves from savers to the state each year. It uses the policy rate, so treat it as a rough guide. Sources: BIS, BIS central bank policy rates; BIS consumer prices; IMF, IMF DataMapper: World Economic Outlook (October 2026); Fiscal Monitor (October 2026); Menzie D. Chinn and Hiro Ito, The Chinn-Ito Index (KAOPEN): a de jure measure of financial openness; IMF, Sovereign Debt Investor Base for Advanced Economies / for Emerging Markets and Developing Economies (Arslanalp and Tsuda).
Measures
Every measure tracked here, with its legal basis and sources. Only in-force measures count in the index.
In force (10)
SNB policy rate at 0% with a negative rate on excess sight deposits
Adds 2.5 points to the index
The SNB cut its policy rate to 0% from 20 June 2025 and left it unchanged at 0% on 24 September 2026. Banks' sight deposits above a limit are remunerated at the policy rate minus 0.25 percentage points, i.e. negatively. The SNB reported inflation of 0.8% in August 2026.
Why it counts: An administered zero rate keeps bank deposit rates near zero (PostFinance's CHF savings account pays 0.00% from August 2025), so savers holding francs earn a real return at or below zero.
Legal basis Geldpolitische Lagebeurteilung vom 24. September 2026 (Medienmitteilung) and 2 more
Geldpolitische Lagebeurteilung vom 24. September 2026 (Medienmitteilung)Primary source
“Die Nationalbank belässt den SNB-Leitzins unverändert bei 0%. Sichtguthaben der Banken bei der SNB werden bis zu einer bestimmten Limite zum SNB-Leitzins verzinst.”
Geldpolitische Lagebeurteilung vom 19. Juni 2025 (Medienmitteilung)Primary source
“Die Nationalbank senkt den SNB-Leitzins um 0,25 Prozentpunkte auf 0%. Der neue Leitzins gilt ab morgen, 20. Juni 2025.”
Umsetzung der Geldpolitik (SNB website), Verzinsung der SichtguthabenPrimary source
“Bei einem SNB-Leitzins von null Prozent werden Sichtguthaben über der Limite negativ verzinst.”
Unremunerated 4% minimum reserve requirement on banks
Adds 2.5 points to the index
Banks must hold minimum reserves equal to 4% of their relevant CHF liabilities (short-term money-market and interbank liabilities, sight and short-term customer deposits and callable customer deposits) in coins, banknotes or SNB sight deposits. The SNB pays no interest on sight deposits held to meet the requirement; the 4% rate applies since 1 July 2024.
Why it counts: A zero-interest reserve requirement is an implicit tax on bank deposits that transfers interest income from banks (and ultimately depositors) to the SNB, whose profits are distributed to the Confederation and cantons.
Legal basis Verordnung zum Bundesgesetz über die Schweizerische Nationalbank (Nationalbankverordnung, NBV), SR 951.131, Art. 15 Abs. 1 and 1 more
Verordnung zum Bundesgesetz über die Schweizerische Nationalbank (Nationalbankverordnung, NBV), SR 951.131, Art. 15 Abs. 1Primary source
“Die erforderliche Mindestreserve beträgt 4 Prozent des Durchschnitts aus den drei der jeweiligen Unterlegungsperiode vorausgegangenen Monatsendwerten der massgeblichen Verbindlichkeiten.”
Umsetzung der Geldpolitik (SNB website), Verzinsung der SichtguthabenPrimary source
“Sichtguthaben, die zur Erfüllung der Mindestreserven gehalten werden, werden nicht verzinst.”
Bank capital and liquidity rules favoring Confederation debt (0% risk weight, HQLA category 1, large-exposure exemption)
Adds 1.8 points to the index
Under the Capital Adequacy Ordinance (ERV), CHF claims on the Swiss Confederation and the SNB that are funded in CHF carry a fixed 0% risk weight, and exposures to central governments are exempt from the 25% large-exposure ceiling. The Liquidity Ordinance (LiqV) counts marketable central-government securities with a 0% risk weight as category 1 high-quality liquid assets.
Why it counts: Banks can hold Confederation bonds without capital charges or concentration limits and use them to meet liquidity rules, which builds steady regulatory demand for government paper.
Legal basis Verordnung über die Eigenmittel und Risikoverteilung der Banken und Wertpapierhäuser (Eigenmittelverordnung, ERV), SR 952.03, Anhang 2, Ziff. 1.2 and 2 more
Verordnung über die Eigenmittel und Risikoverteilung der Banken und Wertpapierhäuser (Eigenmittelverordnung, ERV), SR 952.03, Anhang 2, Ziff. 1.2Primary source
“1.2 Eidgenossenschaft und Schweizerische Nationalbank, sofern die Forderung auf Landeswährung lautet und in dieser refinanziert ist”
Verordnung über die Eigenmittel und Risikoverteilung der Banken und Wertpapierhäuser (Eigenmittelverordnung, ERV), SR 952.03, Art. 97 Abs. 1 und 2 Bst. aPrimary source
“Ein Klumpenrisiko darf höchstens 25 Prozent des nach den Artikeln 31–40 korrigierten anrechenbaren Kernkapitals ausmachen. 2 Diese Obergrenze gilt nicht für: a. 207 Positionen gegenüber Zentralbanken, Zentralregierungen und supranationalen Organisationen”
Verordnung über die Liquidität der Banken und Wertpapierhäuser (Liquiditätsverordnung, LiqV), SR 952.06, Art. 15a Abs. 2 Bst. aPrimary source
“Sie weisen ein Risikogewicht von 0 Prozent nach Anhang 2 Ziffer 1 oder 3.2 ERV auf.”
1% issuance stamp duty on equity, none on bonds
Adds 0.9 points to the index
A federal stamp duty of 1% applies to the creation and increase of equity in Swiss companies, with an exemption where shareholders' contributions do not exceed CHF 1 million in total. Since 1 March 2012 the issuance of Swiss bonds and money-market instruments has not been subject to issuance stamp duty.
Why it counts: Taxing equity issuance but not debt issuance tilts financing and investable supply toward debt instruments, including government bonds.
Legal basis Bundesgesetz über die Stempelabgaben (StG), SR 641.10, Art. 8 Abs. 1
Bundesgesetz über die Stempelabgaben (StG), SR 641.10, Art. 8 Abs. 1Primary source
“Die Abgabe auf Beteiligungsrechten beträgt 1 Prozent und wird berechnet:”
Pension funds: Confederation debt exempt from the 10% single-debtor limit
Adds 1.8 points to the index
Occupational pension funds may invest at most 10% of total assets in claims on a single debtor, but this ceiling may be exceeded for claims on the Swiss Confederation (and Swiss Pfandbrief institutions, among others) under Art. 54 of the BVV 2 ordinance.
Why it counts: Pension funds can concentrate their bond holdings in Confederation debt without breaching diversification rules, which favors government bonds over other single issuers.
Legal basis Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 54 Abs. 1 und 2 Bst. a and 1 more
Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 54 Abs. 1 und 2 Bst. aPrimary source
“Höchstens zehn Prozent des Gesamtvermögens dürfen in Forderungen nach Artikel 53 Absatz 1 Buchstabe b bei einem einzelnen Schuldner angelegt werden.”
Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 54 Abs. 2 Bst. aPrimary source
“Die Obergrenze nach Absatz 1 darf bei folgenden Forderungen überschritten werden: a. Forderungen gegenüber der Eidgenossenschaft;”
Pension funds: 30% cap on unhedged foreign-currency investments
Adds 3.2 points to the index
BVV 2 caps occupational pension funds' unhedged foreign-currency investments at 30% of total assets, and limits real estate to 30% of assets, of which at most one third abroad. Funds may exceed the limits if they show in their annual accounts that safety and diversification are still met (Art. 50 Abs. 4).
Why it counts: The default limits keep most compulsory retirement savings in Swiss-franc assets, limiting savers' exposure to foreign returns through the pension system.
Legal basis Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 55 Bst. c und e and 1 more
Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 55 Bst. c und ePrimary source
“c. 30 Prozent: für Anlagen in Immobilien, wovon maximal ein Drittel im Ausland; d. 15 Prozent: für alternative Anlagen; e. 208 30 Prozent: für Fremdwährungen ohne Währungsabsicherung;”
Verordnung über die berufliche Alters-, Hinterlassenen- und Invalidenvorsorge (BVV 2), SR 831.441.1, Art. 50 Abs. 4Primary source
“Sofern die Vorsorgeeinrichtung die Einhaltung der Absätze 1–3 im Anhang der Jahresrechnung schlüssig darlegt, kann sie gestützt auf ihr Reglement die Anlagemöglichkeiten”
Cost-based rent control tied to the mortgage reference rate
Adds 0.9 points to the index
The Code of Obligations treats rents as abusive if they yield an excessive return or rest on a manifestly excessive purchase price, and tenants can challenge initial rents and increases. Adjustments in running leases follow the federal mortgage reference rate (1.25% since 2 September 2025): a 0.25-point rise allows a 3% rent increase, and a 0.25-point fall gives tenants a claim to a 2.91% cut.
Why it counts: Landlords' returns on residential property are capped by reference to mortgage rates rather than market rents, which lowers the return on real estate as a store of savings.
Legal basis Obligationenrecht (OR), SR 220, Art. 269 and 2 more
Obligationenrecht (OR), SR 220, Art. 269Primary source
“Mietzinse sind missbräuchlich, wenn damit ein übersetzter Ertrag aus der Mietsache erzielt wird oder wenn sie auf einem offensichtlich übersetzten Kaufpreis beruhen.”
Verordnung über die Miete und Pacht von Wohn- und Geschäftsräumen (VMWG), SR 221.213.11, Art. 12a Abs. 1Primary source
“Für Mietzinsanpassungen aufgrund von Änderungen des Hypothekarzinssatzes gilt ein Referenzzinssatz.”
Hypothekarischer Referenzzinssatz (BWO website)Primary source
“Aktueller Referenzzinssatz: 1,25% gültig seit 02.09.2025, unverändert ab 02.09.2026”
Geneva: state-set rents after renovation or conversion (LDTR)
Adds 0.9 points to the index
Geneva's LDTR requires permits to demolish, convert or renovate housing; when granted, the canton fixes maximum rents or sale prices, which stay under state control for 5 to 10 years for new buildings and 3 years (up to 5 for heavy works) for renovated ones. The allowed return on renovation capital is set at 0.5 point above the Banque cantonale de Genève's first-rank mortgage rate.
Why it counts: Caps on post-renovation rents and sale prices limit the return on residential property in the canton.
Legal basis Loi sur les démolitions, transformations et rénovations de maisons d'habitation (LDTR), rsGE L 5 20, Art. 10 al. 1 and 1 more
Loi sur les démolitions, transformations et rénovations de maisons d'habitation (LDTR), rsGE L 5 20, Art. 10 al. 1Primary source
“comme condition de l'autorisation, le montant maximum des loyers des logements”
Loi sur les démolitions, transformations et rénovations de maisons d'habitation (LDTR), rsGE L 5 20, Art. 11 al. 1Primary source
“fixe le montant des loyers ou des prix de vente maximaux, en tenant compte : (7) a) du rendement”
Lex Koller: permit required for foreigners abroad to buy Swiss property
Adds 0.9 points to the index
Persons abroad need a cantonal permit to acquire Swiss real estate. Under BewG Art. 5 these are foreign nationals not domiciled in Switzerland, third-country nationals in Switzerland without the right to settle, companies seated abroad, and Swiss companies they control. Business premises and a principal residence at the buyer's legal domicile are exempt.
Why it counts: Restricting foreign demand shelters the domestic property market and limits who can hold Swiss real estate as an investment.
Legal basis Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland (BewG), SR 211.412.41, Art. 2 Abs. 1
Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland (BewG), SR 211.412.41, Art. 2 Abs. 1Primary source
“Personen im Ausland bedürfen für den Erwerb von Grundstücken einer Bewilligung der zuständigen kantonalen Behörde.”
Securities transfer stamp tax: 0.15% on Swiss and 0.3% on foreign securities
Adds 0.9 points to the index
The federal securities transfer tax (Umsatzabgabe) applies to transfers of bonds, shares and fund units in which a Swiss securities dealer is a party or intermediary, at 1.5 per mille for securities issued by Swiss residents and 3 per mille for securities issued by foreigners.
Why it counts: The tax raises the cost of trading through Swiss intermediaries and taxes foreign securities at twice the Swiss rate, a mild tilt toward Swiss assets; it also applies to Swiss bonds, including Confederation bonds, and can be avoided by trading through a foreign broker.
Legal basis Bundesgesetz über die Stempelabgaben (StG), SR 641.10, Art. 16 Abs. 1 and 1 more
Bundesgesetz über die Stempelabgaben (StG), SR 641.10, Art. 16 Abs. 1Primary source
“Die Abgabe wird auf dem Entgelt berechnet und beträgt: a. 1,5 Promille 101 für von einem Inländer ausgegebene Urkunden; b. 3 Promille 102 für von einem Ausländer ausgegebene Urkunden.”
Bundesgesetz über die Stempelabgaben (StG), SR 641.10, Art. 13 Abs. 1Primary source
“Gegenstand der Abgabe ist die entgeltliche Übertragung von Eigentum an den in Absatz 2 bezeichneten Urkunden, sofern eine der Vertragsparteien oder einer der Vermittler Effektenhändler nach Absatz 3 ist.”
Enacted, not yet in force (1)
Automatic exchange of crypto-asset information (CARF) approved, from 2027 at the earliest
Counts in the outlook only: adds 2.8 points once it applies
Parliament approved the multilateral CARF agreement and the AIA Act amendments on 26 September 2025, under which Swiss crypto service providers will collect and report users' holdings for exchange with partner states. Implementation will start on 1 January 2027 at the earliest, once Parliament approves the partner states; no obligations apply in 2026.
Why it counts: Once active, holding crypto through Swiss or partner-state providers is no longer opaque to tax authorities, reducing crypto's use as an untracked store of savings.
Legal basis AIA-Vereinbarung Kryptowerte / AIAG (Änderung vom 26. September 2025) - SIF Fragen und Antworten and 1 more
AIA-Vereinbarung Kryptowerte / AIAG (Änderung vom 26. September 2025) - SIF Fragen und AntwortenPrimary source
“Die Schweiz wird den AIA über Kryptowerte frühestens ab 1. Januar 2027 umsetzen.”
AIA-Vereinbarung Kryptowerte / AIAG (Änderung vom 26. September 2025) - SIF Fragen und AntwortenPrimary source
“Sie wurde vom Parlament in der Schlussabstimmung vom 26. September 2025 genehmigt.”
Proposed (2)
Proposed Lex Koller tightening: permits for third-country residents, curbs on holiday homes and investment property
Not counted in the index
On 15 April 2026 the Federal Council opened a consultation (to 15 July 2026) on tightening the BewG: apartment purchases by third-country nationals would need a permit and purchases of holiday homes by persons abroad would be restricted. The draft also limits the business-premises exemption to property the buyer uses for its own business, and brings listed real-estate funds, real-estate SICAVs and listed real-estate companies under the permit regime, with stock-exchange participants required to check buyers. No dispatch to Parliament had been published as of October 2026.
Why it counts: Wider permit requirements would further narrow who may hold Swiss real estate and listed property shares, shrinking the market for these assets.
Legal basis Vernehmlassung zur Änderung des BewG (Revision Lex Koller), Medienmitteilung vom 15. April 2026
Vernehmlassung zur Änderung des BewG (Revision Lex Koller), Medienmitteilung vom 15. April 2026Primary source
“Der Bundesrat will das Bundesgesetz über den Erwerb von Grundstücken durch Personen im Ausland (BewG; sog. Lex Koller) verschärfen. Unter anderem will er den Wohnungskauf für Drittstaatsangehörige bewilligungspflichtig machen.”
Proposed stablecoin regime: non-interest-bearing, backed by sight deposits or short-dated HQLA
Not counted in the index
A draft amendment to the Financial Institutions Act (consultation 22 October 2025 to 6 February 2026) reserves the issuance of stablecoins issued in Switzerland and pegged to a single state currency to new 'payment instrument institutions', which may not pay interest on customer funds and must hold them as sight deposits at banks or as high-quality liquid assets with short residual maturities. The Federal Council planned a dispatch to Parliament in the second half of 2026 at the earliest.
Why it counts: Stablecoin holders would earn no interest while issuers' reserves are channelled into bank deposits and short-dated HQLA, which include government bills.
Legal basis Faktenblatt: Neue Regulierung: Die Schweiz als Standort für Stablecoins und Kryptos and 1 more
Faktenblatt: Neue Regulierung: Die Schweiz als Standort für Stablecoins und KryptosPrimary source
“Kundengelder anzunehmen, ohne diese zu verzinsen und ohne damit ein Aktivgeschäft (z.B. Kreditvergabe) zu betreiben.”
Vorentwurf Änderung des Finanzinstitutsgesetzes (FINIG), Art. 51i Abs. 2Primary source
“Die entgegengenommenen Kundengelder können aufbewahrt werden als: a. Sichteinlage bei einer Bank im Sinne des BankG12 oder einem anderen Zahlungsmittelinstitut nach Artikel 51a; und b. qualitativ hochwertige liquide Aktiva mit kurzen Restlaufzeiten.”
Repealed (1)
SNB negative interest rates (2014-2022, down to -0.75%)
Not counted in the index
The SNB announced on 18 December 2014 a -0.25% charge on banks' sight deposits above an exemption threshold, levied from 22 January 2015, and cut it to -0.75% on 15 January 2015 when it dropped the EUR 1.20 floor. It ended negative rates by raising the policy rate to 0.5% from 23 September 2022.
Why it counts: For nearly eight years banks paid to hold franc reserves above their exemption threshold; the SNB itself said negative rates make holding franc investments less attractive.
Legal basis Medienmitteilung: Nationalbank führt Negativzinsen ein and 2 more
Medienmitteilung: Nationalbank führt Negativzinsen einPrimary source
“Die Schweizerische Nationalbank wird Guthaben auf ihren Girokonten mit einem Zins in Höhe von −0,25% belasten.”
Medienmitteilung: Nationalbank hebt Mindestkurs auf und senkt Zins auf −0,75%Primary source
“Zugleich senkt sie den Zins für Guthaben auf den Girokonten, die einen bestimmten Freibetrag übersteigen, um 0,5 Prozentpunkte auf −0,75%.”
Geldpolitische Lagebeurteilung vom 22. September 2022Primary source
“Die Nationalbank strafft die Geldpolitik weiter und erhöht den SNB-Leitzins um 0,75 Prozentpunkte auf 0,5%.”
Before today
The toolkit has no examples from Switzerland yet.