Swiss manufacturers excluded. Swissmem association raises alarm.

Italy has passed a new financial law for 2026 that holds an unpleasant surprise for some members of the Swiss tech industry: Eligible investments will be subject to significantly higher depreciation allowances. This will allow buyers to save a considerable amount of money on taxes. Depreciation can amount to up to 280% of the goods’ value.

The catch: According to currently available information, eligibility would be limited to goods manufactured in the European Union (EU) or the European Economic Area (EEA). Goods from Switzerland would therefore be excluded.

This would put Swiss companies – already hardest hit by the US tariffs – at a significant disadvantage once again: They risk losing the Italian market because competing products from countries like Germany, Austria, and France would become much more financially attractive.

Italy is the fifth-largest export market for the Swiss tech industry, with the affected export volume amounting to around one billion Swiss francs annually. This represents approximately 5 per cent of the 20 billion Swiss francs generated annually by the Swiss mechanical engineering sector.

At stake is nearly 1 billion Swiss francs, or about 5 per cent of the total 20 billion francs generated annually by Swiss machinery exports. “That’s a lot,” says Jean-Philippe Kohl, Vice Director of the tech industry association Swissmem. “Too much, considering all the other challenges.” These include, in particular, the US tariffs, the weakening European economy, geopolitical uncertainties which in turn are hindering investment, and the strong Swiss franc.

It’s about a lot of money. If a profitable Italian company buys one of his machines for around €500 000, it can depreciate a total of €1.4 million over several years, thus saving up to €216 000 in taxes during that period.

That’s why Swissmem immediately raised the alarm and involved the Swiss authorities.

There is little time left to influence the implementation regulations so that Switzerland, alongside EU and EEA states, is included in the list of countries of origin eligible for tax write-offs. In a similar case, Switzerland was treated like the other European countries. Swissmem, together with the State Secretariat for Economic Affairs (SECO) and the Federal Department of Foreign Affairs (FDFA), is working towards a swift solution.

“We only have a few days left,” says Swissmem Vice Director Jean-Philippe Kohl.

Thank you, Florence Vuichard, for the report on this worrying development, in which several Swissmem member companies also report on the disastrous impact on their businesses: Netstal, Renzo Davatz, swissQprint, Kilian Hintermann, Grünig-Interscreen AG, and Andreas Ferndriger – thank you for your commitment!