Switzerland backs 4% streaming tax in referendum

Swiss referendum gives green light for digital streaming ‘Lex Netflix’ levy where foreign services do not invest in local production

Swiss voters on 15 May agreed to introduce a 4% levy on providers of digital streaming services such as Amazon, Disney+ and Netflix. This is expected to generate between CHF18 million ($19.3 million) and CHF30 million a year for the Swiss film industry, according to estimates from the culture office and the Swiss parliament.

Spain and Denmark are considering similar levies.

Non-resident streamers would have the option to instead invest the equivalent amount in Swiss-TV production.  This requirement has been in place – investing 4% of their turnover – since 2007 for local television producers

The Levy was initially proposed in 2021, but opponents were able to raise over 50,000 signatures in a public canvassing, which triggered the referendum requirements.  Swiss taxpayers currently give CHF 100 million to the Swiss film industry each year.

In addition to the tax level, being put forward by the Federal Office of Culture, would be a requirement on foreign providers to source at least 30% of their content from Europe.

Read our Swiss VAT guide.

European levies and investment requirements on streaming services

• France and Italy require up to 20% of turnover to be invested locally
• Denmark has imposed a 6% levy
• Portugal has imposed a 1% charge
• Romania is proposing a levy to subsidise local film making

Europe VAT on digital services