Swiss Voters Reinforce the Country’s Appeal for Global Wealth
Swiss voters have decisively rejected a proposal to introduce a federal inheritance tax of 50 percent on estates exceeding 50 million, preserving the long-standing Cantonal autonomy that underpins Switzerland’s competitiveness as a global wealth hub. The outcome, delivered at the polls on 30 November 2025, reinforces investor confidence in the predictability of the Swiss tax landscape.
The initiative, driven by the Young Socialist Party (Juso), sought to impose a nationwide levy with no exemptions for spouses or direct descendants. Funds raised would have been channelled into a dedicated climate-finance mechanism.
Despite its policy ambitions, the measure failed to secure popular backing, mirroring a previous rejection of a federal inheritance tax in 2015.
Why Voters Turned It Down
Polling ahead of the vote had already signalled widespread opposition. Concerns centred on fears that ultra-high-net-worth individuals could relocate abroad, undermining the effectiveness of the proposed tax.
Critics also warned that heirs of privately owned companies could face liquidity stress, potentially destabilising family businesses. Many voters expressed the view that existing climate-policy tools are adequate without introducing a new federal tax instrument.
Implications for Switzerland’s Wealth Management Position
The rejection strengthens Switzerland’s credentials as a stable and attractive jurisdiction for wealthy families, Swiss private bank EFG International wrote in a note on Monday. By preserving decentralised taxation, voters reaffirmed confidence in a model that allows Cantons to independently set rules on inheritance and gift taxes.
This autonomy remains a cornerstone of Switzerland’s appeal as a leading centre for global wealth management.
Cantonal Framework Remains Intact
Under the status quo, each Canton determines its own thresholds, rates, and exemptions. Taxation is generally progressive and depends on kinship ties. Some Cantons – including Schwyz and Obwalden – levy no inheritance or gift taxes at all.
Canton Lucerne does not impose a gift tax, even on transfers without counter-payment made more than five years before death.
Many Cantons also provide exemptions for spouses, long-term partners, and direct descendants, with some extending exemptions to parents or grandparents.
Key Considerations for Asset Transfers
With Cantonal discretion preserved, residents domiciled in Switzerland should face no adverse immediate impact.
Nevertheless, discrepancies between Cantonal regimes mean that careful planning remains essential when transferring assets, EFG International concludes.
