Swiss Voters Say No to 50% Inheritance and Gift Tax Proposal

In a public vote last weekend, Swiss voters decisively rejected the proposal to impose a 50% inheritance and gift tax on wealth exceeding CHF 50 million. This result underscores Switzerland’s ongoing commitment to remaining an attractive destination for wealthy individuals and family offices.

With a popular initiative, the Young Socialist Party proposed introducing a national inheritance and gift tax of 50% on wealth exceeding 50 million Swiss francs. The revenue from this tax was intended to be used to finance measures to combat the climate crisis and support a comprehensive restructuring of the economy.

Clear Rejection

During the political debate in the run-up to the referendum, the initiative met with strong opposition from the Swiss government, federal parliament, most political parties, and business associations. Concerns were raised that such a high tax could undermine Switzerland's attractiveness as a place of residence for wealthy individuals and family offices in an increasingly competitive international environment.

Last weekend's decisive vote reaffirmed the Swiss people's strong commitment to political stability and reliability. It also reflected widespread skepticism toward radical tax proposals targeting wealthy individuals - proposals that sometimes took on the character of class warfare.

With the initiative’s rejection, the current system remains unchanged: 24 Swiss cantons levy an inheritance tax, and 23 of these also tax gifts (the canton of Lucerne does not tax gifts, while Obwalden and Schwyz do not tax either inheritances or gifts). Spouses and direct descendants are generally exempt or benefit from tax relief. Importantly, there is no federal inheritance or gift tax in Switzerland. In this context, effective estate planning remains essential.

Deloitte’s View

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. Find out more about the advantages of Switzerland as a tier 1 destination for wealthy individuals and family offices on our website.