The fees, previously set at 250 francs, have been waived effective immediately.
Municipal authorities said on Wednesday that the change was made to encourage people to complete the naturalisation process.
“Around a third of the city of Zurich’s population does not have Swiss citizenship rights. This is despite the fact that many foreign residents meet the formal requirements for naturalisation” said the city in a statement.
“By waiving a fee for foreigners up to 25 years of age, the financial hurdles for naturalisation can be lowered.”
With approximately 300 people under the age of 25 becoming naturalised in Zurich each year, the policy change is expected to cost the city 75,000 francs.
The change applies to fees applied at a municipal level.
Fees for naturalisation will continue to apply at a federal and cantonal level.