diff --git a/CMakeLists.txt b/CMakeLists.txt
--- a/CMakeLists.txt
+++ b/CMakeLists.txt
@@ -367,6 +367,7 @@
    input_event_spy.cpp
    keyboard_input.cpp
    keyboard_layout.cpp
+   keyboard_layout_switching.cpp
    keyboard_repeat.cpp
    pointer_input.cpp
    touch_input.cpp
diff --git a/autotests/integration/keyboard_layout_test.cpp b/autotests/integration/keyboard_layout_test.cpp
--- a/autotests/integration/keyboard_layout_test.cpp
+++ b/autotests/integration/keyboard_layout_test.cpp
@@ -21,6 +21,7 @@
 #include "keyboard_input.h"
 #include "keyboard_layout.h"
 #include "platform.h"
+#include "virtualdesktops.h"
 #include "wayland_server.h"
 
 #include <KConfigGroup>
@@ -51,6 +52,7 @@
     void testChangeLayoutThroughDBus();
     void testPerLayoutShortcut();
     void testDBusServiceExport();
+    void testVirtualDesktopPolicy();
 
 private:
     void reconfigureLayouts();
@@ -275,5 +277,65 @@
     QTRY_VERIFY(!QDBusConnection::sessionBus().interface()->isServiceRegistered(QStringLiteral("org.kde.keyboard")).value());
 }
 
+void KeyboardLayoutTest::testVirtualDesktopPolicy()
+{
+    KConfigGroup layoutGroup = kwinApp()->kxkbConfig()->group("Layout");
+    layoutGroup.writeEntry("LayoutList", QStringLiteral("us,de,de(neo)"));
+    layoutGroup.writeEntry("SwitchMode", QStringLiteral("Desktop"));
+    layoutGroup.sync();
+    reconfigureLayouts();
+    auto xkb = input()->keyboard()->xkb();
+    QTRY_COMPARE(xkb->numberOfLayouts(), 3u);
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("English (US)"));
+
+    VirtualDesktopManager::self()->setCount(4);
+    QCOMPARE(VirtualDesktopManager::self()->count(), 4u);
+
+    auto changeLayout = [] (const QString &layoutName) {
+        QDBusMessage msg = QDBusMessage::createMethodCall(QStringLiteral("org.kde.keyboard"), QStringLiteral("/Layouts"), QStringLiteral("org.kde.KeyboardLayouts"), QStringLiteral("setLayout"));
+        msg << layoutName;
+        return QDBusConnection::sessionBus().asyncCall(msg);
+    };
+    auto reply = changeLayout(QStringLiteral("German"));
+    reply.waitForFinished();
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("German"));
+
+    // switch to another virtual desktop
+    auto desktops = VirtualDesktopManager::self()->desktops();
+    QCOMPARE(desktops.count(), 4);
+    QCOMPARE(desktops.first(), VirtualDesktopManager::self()->currentDesktop());
+    VirtualDesktopManager::self()->setCurrent(desktops.at(1));
+    QCOMPARE(desktops.at(1), VirtualDesktopManager::self()->currentDesktop());
+    // should be reset to English
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("English (US)"));reply = changeLayout(QStringLiteral("German (Neo 2)"));
+    reply.waitForFinished();
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("German (Neo 2)"));
+
+    // back to desktop 0 -> German
+    VirtualDesktopManager::self()->setCurrent(desktops.at(0));
+    QCOMPARE(desktops.first(), VirtualDesktopManager::self()->currentDesktop());
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("German"));
+    // desktop 2 -> English
+    VirtualDesktopManager::self()->setCurrent(desktops.at(2));
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("English (US)"));
+    // desktop 1 -> Neo
+    VirtualDesktopManager::self()->setCurrent(desktops.at(1));
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("German (Neo 2)"));
+
+    // remove virtual desktops
+    VirtualDesktopManager::self()->setCount(1);
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("German"));
+
+    // add another desktop
+    VirtualDesktopManager::self()->setCount(2);
+    // switching to it should result in going to default
+    desktops = VirtualDesktopManager::self()->desktops();
+    QCOMPARE(desktops.count(), 2);
+    QCOMPARE(desktops.first(), VirtualDesktopManager::self()->currentDesktop());
+    VirtualDesktopManager::self()->setCurrent(desktops.last());
+    QTRY_COMPARE(xkb->layoutName(), QStringLiteral("English (US)"));
+
+}
+
 WAYLANDTEST_MAIN(KeyboardLayoutTest)
 #include "keyboard_layout_test.moc"
diff --git a/keyboard_layout.h b/keyboard_layout.h
--- a/keyboard_layout.h
+++ b/keyboard_layout.h
@@ -35,6 +35,11 @@
 class Xkb;
 class KeyboardLayoutDBusInterface;
 
+namespace KeyboardLayoutSwitching
+{
+class Policy;
+}
+
 class KeyboardLayout : public QObject, public InputEventSpy
 {
     Q_OBJECT
@@ -76,6 +81,7 @@
     KSharedConfigPtr m_config;
     QVector<QAction*> m_layoutShortcuts;
     KeyboardLayoutDBusInterface *m_dbusInterface = nullptr;
+    KeyboardLayoutSwitching::Policy *m_policy = nullptr;
 };
 
 class KeyboardLayoutDBusInterface : public QObject
diff --git a/keyboard_layout.cpp b/keyboard_layout.cpp
--- a/keyboard_layout.cpp
+++ b/keyboard_layout.cpp
@@ -18,6 +18,7 @@
 along with this program.  If not, see <http://www.gnu.org/licenses/>.
 *********************************************************************/
 #include "keyboard_layout.h"
+#include "keyboard_layout_switching.h"
 #include "keyboard_input.h"
 #include "input_event.h"
 #include "main.h"
@@ -162,6 +163,11 @@
 {
     if (m_config) {
         m_config->reparseConfiguration();
+        const QString policyKey = m_config->group(QStringLiteral("Layout")).readEntry("SwitchMode", QStringLiteral("Global"));
+        if (!m_policy || m_policy->name() != policyKey) {
+            delete m_policy;
+            m_policy = KeyboardLayoutSwitching::Policy::create(m_xkb, this, policyKey);
+        }
     }
     m_xkb->reconfigure();
     resetLayout();
diff --git a/keyboard_layout_switching.h b/keyboard_layout_switching.h
new file mode 100644
--- /dev/null
+++ b/keyboard_layout_switching.h
@@ -0,0 +1,98 @@
+/********************************************************************
+ KWin - the KDE window manager
+ This file is part of the KDE project.
+
+Copyright (C) 2017 Martin Gräßlin <mgraesslin@kde.org>
+
+This program is free software; you can redistribute it and/or modify
+it under the terms of the GNU General Public License as published by
+the Free Software Foundation; either version 2 of the License, or
+(at your option) any later version.
+
+This program is distributed in the hope that it will be useful,
+but WITHOUT ANY WARRANTY; without even the implied warranty of
+MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+GNU General Public License for more details.
+
+You should have received a copy of the GNU General Public License
+along with this program.  If not, see <http://www.gnu.org/licenses/>.
+*********************************************************************/
+#ifndef KWIN_KEYBOARD_LAYOUT_SWITCHING_H
+#define KWIN_KEYBOARD_LAYOUT_SWITCHING_H
+
+#include <QObject>
+#include <QHash>
+
+namespace KWin
+{
+
+class KeyboardLayout;
+class Xkb;
+class VirtualDesktop;
+
+namespace KeyboardLayoutSwitching
+{
+
+class Policy : public QObject
+{
+    Q_OBJECT
+public:
+    virtual ~Policy();
+
+    virtual QString name() const = 0;
+
+    static Policy *create(Xkb *xkb, KeyboardLayout *layout, const QString &policy);
+
+protected:
+    explicit Policy(Xkb *xkb, KeyboardLayout *layout);
+    virtual void clearCache() = 0;
+    virtual void layoutChanged() = 0;
+
+    void setLayout(quint32 layout);
+    quint32 layout() const;
+
+private:
+    Xkb *m_xkb;
+    KeyboardLayout *m_layout;
+};
+
+class GlobalPolicy : public Policy
+{
+    Q_OBJECT
+public:
+    explicit GlobalPolicy(Xkb *xkb, KeyboardLayout *layout);
+    ~GlobalPolicy() override;
+
+    QString name() const override {
+        return QStringLiteral("Global");
+    }
+
+protected:
+    void clearCache() override {}
+    void layoutChanged() override {}
+};
+
+class VirtualDesktopPolicy : public Policy
+{
+    Q_OBJECT
+public:
+    explicit VirtualDesktopPolicy(Xkb *xkb, KeyboardLayout *layout);
+    ~VirtualDesktopPolicy() override;
+
+    QString name() const override {
+        return QStringLiteral("Desktop");
+    }
+
+protected:
+    void clearCache() override;
+    void layoutChanged() override;
+
+private:
+    void desktopChanged();
+    QHash<VirtualDesktop *, quint32> m_layouts;
+};
+
+}
+}
+
+#endif
diff --git a/keyboard_layout_switching.cpp b/keyboard_layout_switching.cpp
new file mode 100644
--- /dev/null
+++ b/keyboard_layout_switching.cpp
@@ -0,0 +1,119 @@
+/********************************************************************
+ KWin - the KDE window manager
+ This file is part of the KDE project.
+
+Copyright (C) 2017 Martin Gräßlin <mgraesslin@kde.org>
+
+This program is free software; you can redistribute it and/or modify
+it under the terms of the GNU General Public License as published by
+the Free Software Foundation; either version 2 of the License, or
+(at your option) any later version.
+
+This program is distributed in the hope that it will be useful,
+but WITHOUT ANY WARRANTY; without even the implied warranty of
+MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+GNU General Public License for more details.
+
+You should have received a copy of the GNU General Public License
+along with this program.  If not, see <http://www.gnu.org/licenses/>.
+*********************************************************************/
+#include "keyboard_layout_switching.h"
+#include "keyboard_layout.h"
+#include "virtualdesktops.h"
+#include "xkb.h"
+
+namespace KWin
+{
+
+namespace KeyboardLayoutSwitching
+{
+
+Policy::Policy(Xkb *xkb, KeyboardLayout *layout)
+    : QObject(layout)
+    , m_xkb(xkb)
+    , m_layout(layout)
+{
+    connect(m_layout, &KeyboardLayout::layoutsReconfigured, this, &Policy::clearCache);
+    connect(m_layout, &KeyboardLayout::layoutChanged, this, &Policy::layoutChanged);
+}
+
+Policy::~Policy() = default;
+
+void Policy::setLayout(quint32 layout)
+{
+    m_xkb->switchToLayout(layout);
+}
+
+quint32 Policy::layout() const
+{
+    return m_xkb->currentLayout();
+}
+
+Policy *Policy::create(Xkb *xkb, KeyboardLayout *layout, const QString &policy)
+{
+    if (policy.toLower() == QStringLiteral("desktop")) {
+        return new VirtualDesktopPolicy(xkb, layout);
+    }
+    return new GlobalPolicy(xkb, layout);
+}
+
+GlobalPolicy::GlobalPolicy(Xkb *xkb, KeyboardLayout *layout)
+    : Policy(xkb, layout)
+{
+}
+
+GlobalPolicy::~GlobalPolicy() = default;
+
+VirtualDesktopPolicy::VirtualDesktopPolicy(Xkb *xkb, KeyboardLayout *layout)
+    : Policy(xkb, layout)
+{
+    connect(VirtualDesktopManager::self(), &VirtualDesktopManager::currentChanged, this, &VirtualDesktopPolicy::desktopChanged);
+}
+
+VirtualDesktopPolicy::~VirtualDesktopPolicy() = default;
+
+void VirtualDesktopPolicy::clearCache()
+{
+    m_layouts.clear();
+}
+
+void VirtualDesktopPolicy::desktopChanged()
+{
+    auto d = VirtualDesktopManager::self()->currentDesktop();
+    if (!d) {
+        return;
+    }
+    auto it = m_layouts.constFind(d);
+    if (it == m_layouts.constEnd()) {
+        // new desktop - go to default;
+        setLayout(0);
+    } else {
+        setLayout(it.value());
+    }
+}
+
+void VirtualDesktopPolicy::layoutChanged()
+{
+    auto d = VirtualDesktopManager::self()->currentDesktop();
+    if (!d) {
+        return;
+    }
+    auto it = m_layouts.find(d);
+    const auto l = layout();
+    if (it == m_layouts.constEnd()) {
+        m_layouts.insert(d, l);
+        connect(d, &VirtualDesktop::aboutToBeDestroyed, this,
+            [this, d] {
+                m_layouts.remove(d);
+            }
+        );
+    } else {
+        if (it.value() == l) {
+            return;
+        }
+        it.value() = l;
+    }
+}
+
+}
+}
diff --git a/virtualdesktops.h b/virtualdesktops.h
--- a/virtualdesktops.h
+++ b/virtualdesktops.h
@@ -21,6 +21,7 @@
 #define KWIN_VIRTUAL_DESKTOPS_H
 // KWin
 #include <kwinglobals.h>
+#include <kwin_export.h>
 // Qt includes
 #include <QObject>
 #include <QPoint>
@@ -36,7 +37,7 @@
 
 namespace KWin {
 
-class VirtualDesktop : public QObject
+class KWIN_EXPORT VirtualDesktop : public QObject
 {
     Q_OBJECT
     Q_PROPERTY(QByteArray id READ id CONSTANT)
@@ -63,6 +64,10 @@
 
 Q_SIGNALS:
     void nameChanged();
+    /**
+     * Emitted just before the desktop gets destroyed.
+     **/
+    void aboutToBeDestroyed();
 
 private:
     QByteArray m_id;
@@ -124,7 +129,7 @@
  * of an adjacent desktop or to switch to an adjacent desktop. Interested parties should make use of
  * these methods and not replicate the logic to switch to the next desktop.
  **/
-class VirtualDesktopManager : public QObject
+class KWIN_EXPORT VirtualDesktopManager : public QObject
 {
     Q_OBJECT
     /**
@@ -163,6 +168,12 @@
      */
     uint current() const;
     /**
+     * @returns The current desktop
+     * @see setCurrent
+     * @see currentChanged
+     **/
+    VirtualDesktop *currentDesktop() const;
+    /**
      * Moves to the desktop through the algorithm described by Direction.
      * @param wrap If @c true wraps around to the other side of the layout
      * @see setCurrent
diff --git a/virtualdesktops.cpp b/virtualdesktops.cpp
--- a/virtualdesktops.cpp
+++ b/virtualdesktops.cpp
@@ -39,7 +39,10 @@
 {
 }
 
-VirtualDesktop::~VirtualDesktop() = default;
+VirtualDesktop::~VirtualDesktop()
+{
+    emit aboutToBeDestroyed();
+}
 
 void VirtualDesktop::setId(const QByteArray &id)
 {
@@ -327,6 +330,11 @@
     return m_current ? m_current->x11DesktopNumber() : 0;
 }
 
+VirtualDesktop *VirtualDesktopManager::currentDesktop() const
+{
+    return m_current;
+}
+
 bool VirtualDesktopManager::setCurrent(uint newDesktop)
 {
     if (newDesktop < 1 || newDesktop > count() || newDesktop == current()) {