On November 30, 2025, Swiss voters decisively rejected a proposal to introduce a 50 percent federal inheritance and gift tax on estates worth more than CHF 50 million. About 78 percent of voters said no, stopping a plan that would have created Switzerland’s first federal inheritance tax.
This result keeps the current system unchanged, where each canton sets its own inheritance and gift-tax rules.
What the Proposal Included
The initiative was launched by the youth wing of the Socialist Party and aimed to tax inheritances and gifts above CHF 50 million (about €53.5 million). The revenue would have been used for climate-related projects.
Under the proposal:
- A flat 50% tax would apply to the portion of wealth above CHF 50 million
- No exemptions would be given to spouses or direct descendants
- Privately held companies could also be subject to the tax
The plan quickly met resistance from business groups, political leaders across the spectrum, and family-owned companies. Critics warned that very large estates — especially those tied to private businesses — could face liquidity problems, forcing heirs to sell assets in order to pay the tax.
Why Voters Rejected the Tax
Opposition to the proposal was broad and consistent throughout the country.
Concerns included:
- The risk of pushing wealthy families and their capital out of Switzerland
- Pressure on family-owned companies that might be forced to sell shares or assets to meet tax obligations
- The belief that Switzerland’s tax stability should not be disrupted at the federal level
- The importance of protecting cantonal autonomy, a core part of Switzerland’s system
Polls ahead of the vote showed limited support, and the final results confirmed that the proposal had little chance of succeeding.
What This Means for Switzerland’s Wealth Landscape
The result reinforces Switzerland’s position as one of the world’s most predictable and stable jurisdictions for wealth planning. Because wealth, inheritance, and gift taxes remain under cantonal control, wealthy individuals and families can continue choosing cantons that match their planning needs including jurisdictions that charge no inheritance tax on transfers to children or spouses.
The vote also avoids what many opponents said could have become a significant wealth-flight scenario. Similar proposals in countries like the UK have already contributed to a rise in wealthy families considering relocation. Had the Swiss tax passed, it could have created pressure on large family estates and pushed some capital offshore, a scenario voters ultimately rejected.
