Swiss voters have overwhelmingly rejected a proposal to introduce a 50% inheritance and gift tax on fortunes above 50 million Swiss francs ($62 million, €53.6 million), a decision that reinforces the country’s long-standing reputation as a stable and attractive hub for wealthy individuals and family offices.
The initiative, spearheaded by the Young Socialist Party, sought to create a national tax on large inheritances and gifts, with revenues earmarked for “socially just measures to combat the climate crisis and the necessary restructuring of the economy as a whole.”
But in the lead-up to the nationwide vote, the proposal faced an uphill battle.
Strong Pushback Ahead of the Poll
The Swiss government, federal parliament, major political parties, and business groups lined up against the tax plan, warning it would undermine Switzerland’s competitive edge. Critics argued that a 50% levy on large estates could deter affluent residents and investors amid intensifying global competition for high-net-worth individuals.
Opponents also framed the proposal as a polarising measure, accusing supporters of promoting a form of “class warfare” that clashed with Switzerland’s tradition of political moderation and fiscal stability.
The referendum’s outcome highlighted public reluctance to embrace sweeping wealth tax reforms. The result preserves Switzerland’s current decentralised approach: 24 cantons levy inheritance taxes, and 23 also tax gifts, though exemptions and reliefs are common for spouses and direct descendants. Notably, the country still has no federal inheritance or gift tax.
Analysts say the vote underscores Swiss citizens’ preference for continuity, reliability, and incremental change over dramatic shifts in the tax regime.
“With this decisive rejection, Switzerland continues to be one of the most attractive places to live for wealthy individuals by international standards. The country’s strong reputation continues to be based on several key factors, including political and legal stability, an appealing tax system – including lump-sum taxation for individuals with no gainful employment in Switzerland – a business-friendly legal framework, and a rich pool of professional expertise,” Deloitte wrote about the matter.
