Swiss voters reject 50% inheritance tax for super-rich

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

Swiss voters on Sunday overwhelmingly rejected a proposal to impose a 50 per cent inheritance levy on the super-rich, in a contentious referendum that came as governments around the world wrestle with how to tax the wealthy.

Around 79 percent rejected the initiative, with about 43 percent of the population participating. Opponents of the measure had feared that a narrow defeat would invite other similar tax proposals in years to come.

The referendum, one of the most divisive in recent Swiss political memory, comes amid a global split between countries competing to lure wealthy families with fiscal incentives and those seeking to tax what they see as excessive fortunes.

The proposal from the far-left Young Socialists party would have introduced a federal inheritance and gift tax of 50 per cent on estates and transfers above SFr50mn (£47mn), marking a dramatic break from Switzerland’s tradition of decentralised, low-burden taxation. Revenue would have been earmarked for climate-related spending.

 The federal government opposed the initiative, warning it would damage Switzerland’s appeal as a stable home for internationally mobile wealth. The proposal was originally drafted to be retroactive — a clause that provoked a fierce backlash from business groups and tax lawyers and was later softened.

The move prompted deep anxiety among Swiss family offices and wealthy residents, some of whom were reviewing relocation options this year ahead of the vote, the Financial Times reported in June. Economists and lawyers warned the measure could affect succession planning for family-owned companies whose wealth is tied up in illiquid assets.

For more information see Mercedes Ruehl and Josh Spero “Swiss voters reject 50% inheritance tax for super-rich,” The Financial Times, November 29, 2025.