Switzerland Faces Controversial Vote on 50% Inheritance Tax for Ultra-Wealthy

This fall, Swiss voters will decide on a controversial inheritance and gift tax initiative spearheaded by the Young Socialist Party (JUSO). The proposal targets estates exceeding CHF 50 million with a 50% tax rate, with proceeds earmarked for climate-related initiatives.

Despite its progressive pitch, the measure faces mounting resistance across the political spectrum, with critics labeling it as radical, economically short-sighted, and reputationally risky for one of the world’s leading private wealth jurisdictions.

Prominent voices in the investment migration and wealth advisory sectors have already begun sounding the alarm. Philippe A. May, CEO of EC Holdings, says the proposal has “zero chance” of passing, describing it as “extremist” and “fringe” by Swiss standards.

Similarly, Zurich-based advisor Yamin Fouzi warns that just debating the measure could harm Switzerland’s standing among global HNWIs, many of whom consider the country a safe and stable base for multigenerational wealth planning.

Widespread Opposition Emerges Ahead of Fall Referendum

The tax proposal, focused on estates over CHF 50 million, has drawn swift condemnation from politicians, economists, and business leaders.

May highlights that “most parties, media outlets, and voters are against it,” pointing to Switzerland’s long-standing resistance to punitive wealth taxes, including past failed attempts to reform the country’s tax-privileged forfait fiscal regime.

Key reasons the initiative is expected to fail

• Political resistance: Most mainstream parties and media outlets oppose the proposal
• Historic precedent: Similar “redistribution” initiatives have consistently been voted down
• Economic risk: Critics fear a tax exodus that could weaken the national budget
• Slippery slope concern: Citizens worry lower thresholds could follow if this pass
• Reputational risk: The mere proposal may deter future investors and UHNWIs

There’s also widespread concern that approving a tax for the ultra-wealthy could open the door to broader thresholds in future referenda, eventually affecting middle- and upper-middle-class families with generational assets.

Experts Warn of Long-Term Damage to Switzerland’s Financial Image

Critics argue that beyond the tax itself, the reputational impact of this debate could undermine Switzerland’s appeal as a financial center.

With the wealthiest 1% controlling 45% of national wealth, and the top 10% contributing 53% of income tax revenue, the departure of even a small segment of ultra-high-net-worth individuals (UHNWIs) could destabilize public finances.

Peter Spuhler, a Swiss billionaire and former politician, has already floated the idea of leaving Switzerland if the law passes. Though hypothetical, such threats are being taken seriously. “Even talking about these policies can scare away global capital,” says Fouzi, warning that investor confidence is built on long-term stability, not temporary populist shifts.