Lugano mayor proposes property tax freeze as city faces cost-of-living squeeze

Mayor Michele Foletti on Thursday proposed freezing Lugano’s municipal property tax rate at 2026 levels for the 2027 budget year, a move the city says will save the average homeowner approximately 320 Swiss francs annually. The freeze, which requires approval from the City Council by October 15, applies to the municipal share of the cantonal property tax, currently set at 1.2 per thousand of taxable value, and would mark the first time in four years the levy has not increased.

Why the freeze matters now

The proposal comes as Lugano residents face a 5.3 percent increase in the consumer price index over the past 12 months, driven largely by higher rents and energy costs, according to data from the Federal Statistical Office released June 28. A city-commissioned survey of 1,200 households, published July 2, found that 62 percent of respondents cited housing costs as their top financial concern. The tax freeze is projected to reduce municipal revenue by 11.2 million francs in 2027, equivalent to 2.8 percent of the city’s general budget of 398 million francs.

“The mayor’s decision reflects a direct response to affordability pressures that have emerged as the dominant local issue this year,” said Elena Rossi, a policy analyst at the Institute for Local Governance at the University of Lugano, in a statement. Rossi noted that Lugano’s median rental price for a three-room apartment has risen to 1,850 francs per month, up 7 percent from 2025.

What it means for residents

For a typical homeowner with a property valued at 800,000 francs, the freeze translates into a saving of about 320 francs annually, according to city finance department calculations provided to reporters. Renters may also benefit indirectly, as some landlords pass on property tax changes through net rent adjustments under Swiss tenancy rules, though the city has no data on the share of rental units where such pass-through occurs.

The trade-off: the city will delay planned upgrades to the Parco Ciani irrigation system, a 1.4 million franc project, and reduce the budget for after-school programming at the Centro Giovani by 250,000 francs. City spokesperson Luca Bernasconi said those cuts are “temporary and reversible,” and that the mayor’s office will seek alternative funding through a cantonal grant application due August 30.

Residents can expect their 2027 tax bills to arrive in December 2026 with the frozen rate applied, assuming the council approves the plan. The city’s finance department will hold two public information sessions on July 28 and August 11 at the Palazzo Civico to explain the implications.

What happens next: the City Council’s finance committee will debate the proposal on September 8, followed by a full council vote on October 15. If approved, the freeze would take effect January 1, 2027. If rejected, the rate will revert to the 2026 level, a 0.3-percent increase over 2025, unless an alternative amendment passes.