The real estate market in Zurich is booming, with property prices soaring and municipalities reaping substantial tax revenues.

However, this lucrative source of income is now under threat as the canton of Zurich faces rising debts and budget deficits.

Currently, municipalities benefit entirely from the property gains tax, but the canton is considering taking a share to address its financial woes.

This proposal has sparked concern among local governments, who rely heavily on these taxes to balance their budgets.

Some suggest increasing the property gains tax to curb speculation and generate more revenue, while others criticize the canton for targeting municipal income instead of addressing its own spending issues.

The debate continues as the canton prepares its budget for 2025, with significant investments planned in education and healthcare, despite the looming financial challenges.