Inheritance Tax Referendum Spooks Swiss Super-Rich

(MENAFN- Swissinfo) Lawyers and bankers in Switzerland are warning of a UK-style exodus of the wealthy ahead of a referendum on a 50% inheritance tax for the super-rich. This content was published on June 23, 2025 - 10:50 5 minutes Mercedes Ruehl, Financial Times

The Alpine nation is due to hold a popular vote in November on the introduction of a federal tax on inheritances and gifts worth more than CHF50 million ($61 million). Unlike existing cantonal duties that would still apply, the proposal does not include an exemption for spouses or direct descendants.

The looming vote comes after the UK sparked a rush for the exit among wealthy foreigners by making the global assets of non-domiciled residents liable to inheritance tax – a move it is now considering reversing. Meanwhile, jurisdictions such as Dubai and Italy have stepped up efforts to lure the rich.

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“In terms of the chance for Switzerland to attract people leaving the UK, the damage has been done. The timing was terrible,” said Georgia Fotiou, a lawyer advising private clients at Staiger Law.“It hasn't stopped everyone from coming but more have chosen Italy, Greece, the United Arab Emirates and elsewhere instead.”

The new tax was proposed by the far-left Young Socialists party in 2022 as a way of raising money to tackle the climate crisis. Under Swiss law, such proposals go to a public vote if they are backed by 100,000 signatures.

“The whole country has to vote on the proposal just as a sheer consequence of the proposal being made, which creates unnecessary uncertainty,” said Frédéric Rochat, managing partner of Geneva-based Lombard Odier.“The simple fact it exists is unhelpful.”

The proposed tax would also affect those running the thousands of small- and medium-sized businesses, as well as entrepreneurial families, spread across the country, many of whom have their money tied up in the business, Rochat added.

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