Swiss voters overwhelmingly rejected a proposed 50 % inheritance tax on ultra-wealthy residents, delivering a resounding blow to a bid aimed at taxing the country’s top 0.03%. Official results released Sunday show that 78.3% voted against the levy, and not a single canton backed it. Voter turnout stood at 43%.
Finance Minister Karin Keller-Sutter said the result underscored public distrust of what she called a dangerous fiscal experiment. “Voters have clearly rejected a risky fiscal policy experiment,” she said. “Such a tax would have thrown our tax system out of balance and would have damaged Switzerland’s attractiveness.”
Targeted Tax Would Hit Only the Ultra-Wealthy
The tax plan was proposed by the left-wing youth group, the Young Socialists, and would have applied a 50 % levy to inherited or gifted assets above 50 million Swiss francs (roughly $62 million). According to government estimates, the measure would have affected only about 2,500 individuals roughly 0.03% of the population.
The levy was promoted as a way to raise money for climate-change initiatives. But critics across most political parties, as well as top business leaders, argued it would drive wealthy residents out of Switzerland and ultimately reduce government revenues.
Business Leaders Warned They Would Leave
One of the most prominent voices against the tax was billionaire industrialist Peter Spuhler, majority shareholder of Stadler Rail AG. He warned that if the levy passed, he would leave the country and that his company might need to be sold after his death.
Switzerland already imposes wealth taxes and remains home to an exceptionally high number of millionaires and billionaires. A recent study from UBS found that the country counts more than nine billionaires per million inhabitants, five times the average across Western Europe. The nation also offers special tax treatment for wealthy foreign residents who do not have to fully disclose their assets advantages likely to have influenced voters.
Local Vote Also Rejects Minimum Wage Proposal
On the same day, voters in the canton of Fribourg rejected a proposal to institute a local minimum wage of 23 Swiss francs per hour (approximately $28.60). 53.5% voted against the measure, extending the trend of referendums favouring business-friendly policies.
Switzerland Keeps Its Appeal to the Wealthy
Observers say the referendum result reinforces Switzerland’s continuing appeal as a global haven for the rich. With its favorable tax regime, robust banking industry, and political stability, many high-net-worth individuals continue to view the country as a safe base even while other global centres such as parts of Asia or the Middle East compete for wealthy residents.
What is Inheritance Tax?
Inheritance and gift taxes are instead levied at the cantonal (state) and municipal level, with significant variation between the cantons. Some cantons, like Schwyz and Obwalden, do not levy any inheritance or gift taxes at all.
How Much Is Inheritance Tax in Switzerland?
Switzerland does not have a nationwide inheritance tax. Instead, each canton sets its own rules, and most cantons exempt spouses and children entirely.
Below is a sample rate table for certain Swiss cantons that do levy inheritance tax:
| Value of inheritance (CHF) | Inheritance tax rate |
|---|---|
| Up to 110,600 | 1% |
| 110,600 to 221,200 | 1.25% |
| 221,200 to 331,800 | 1.5% |
| 331,800 to 442,400 | 1.75% |
| 442,400 to 553,000 | 2% |
| 553,000 to 663,600 | 2.25% |
| 663,600+ | 2.5% |
