Skip to content
Round Logo — Smalller size
Wills, Trusts, & Estates Prof Blog
Formerly Hosted by the Law Professor Blogs Network

Inheritance tax referendum spooks Swiss super-rich

By Gerry W. Beyer

DCSwitzerland is facing backlash from lawyers and bankers over a proposed 50% federal inheritance tax on gifts and estates worth more than Sfr5o million ($61 million), which will go to a nationwide referendum in November. The initiative, launched by the Young Socialists in 2022, includes no exemption for spouses or direct descendants, and is intended to raise funds to address the climate crisis. The proposal has sparked concerns about economic instability and has already prompted some wealthy individuals to leave Switzerland or choose not to relocate there, mirroring the recent exodus from the UK after changes to its own inheritance tax policies.

Critics argue the proposal undermines Switzerland’s reputation for financial stability and low taxes, particularly for family-run businesses that may struggle to pay such high levies. Influential business leaders, like Stadler Rail owner Peter Spuhler, have warned of severe consequences, claiming heirs could owe billions. Banking and legal professionals say the referendum creates damaging uncertainty and makes Switzerland less attractive compared to jurisdictions like Italy, Greece, Dubai, and Liechtenstein, which offer more favorable tax environments or no inheritance tax at all.

While some banks report continued inflows of foreign wealth due to global volatility, others say the proposed tax has already discouraged new entrants. The federal council and both chambers of Swiss parliament oppose the measure, and experts predict it is unlikely to pass given the Swiss electorate’s traditional resistance to wealth taxes. Still, even a narrow defeat could keep the issue alive and harm the country’s long-term appeal, leading some to argue that a decisive rejection is necessary to preserve Switzerland’s business-friendly image.

For more information see Mercedes Ruehl “Inheritance tax referendum spooks Swiss super-rich,” The Financial Times, June 20, 2025. 

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.

Posted in:
Estate Tax