Earthquake in Switzerland: 50% hit on inheritance. “Children also affected”. The rich prepare to flee.
Switzerland, which has always been synonymous with stability, banking secrecy and asset security, is on the brink of an earthquake that could change its face forever. Lawyers, bankers and entrepreneurs are sounding the alarm: a referendum proposal to introduce a 50% inheritance tax and a tax on large fortunes is causing panic among wealthy residents, threatening to trigger a British-style flight of capital and people. The safe haven is no longer so safe.
In November, the Swiss people will vote on a popular initiative that, if approved, would introduce a 50% federal tax on inheritances and gifts exceeding 50 million Swiss francs (about $61 million). But the real poison lies in one devastating detail: Unlike current cantonal taxes, the proposal does not provide any exemptions for spouses or direct descendants. This would be a true intergenerational expropriation, a death blow to the heart of wealth planning and business continuity for thousands of families.
An Ideological Attack on the Heart of the Swiss Model
The initiative, launched in 2022 by the Young Socialists party (a far-left movement), was presented under the noble pretext of raising funds for the climate crisis. However, according to many analysts, the real goal is an ideological attack on the successful Swiss model. “The simple fact that this proposal exists is harmful and creates unnecessary uncertainty,” Frédéric Rochat, managing partner of the prestigious bank Lombard Odier, stated bluntly.
The danger does not only concern the foreign “super-rich”. The blow would also hit the connective tissue of the Swiss economy hard: the thousands of small and medium-sized family-run businesses, the famous Mittelstand , which would see their assets, often tied to the company itself, halved when the next generation passes. Peter Spuhler, owner of the railway giant Stadler Rail and one of the richest men in the country, called the proposal “a disaster for Switzerland”, calculating that his heirs could be forced to pay the state up to 2 billion francs.
The escape has already begun
The uncertainty is already having its toxic effects. While competing jurisdictions like Italy (with its flat tax for new residents) and Dubai (with zero tax) roll out the red carpet to attract capital, Switzerland is sabotaging itself. “In terms of attracting people leaving the UK, the damage has already been done. The timing has been terrible,” says Georgia Fotiou, a lawyer at Staiger.
Swiss Franc
The testimonies from the front are alarming. Lombard Odier's Rochat confirms that he has "seen families living in Switzerland who decided not to take any risks and to move even before the vote". Other foreign clients, ready to move, have changed their minds when faced with an "extremely damaging" proposal. Another private banker from Zurich said that one of his top clients has already moved to Liechtenstein because, even if the "no" vote wins, "the uncertainty that a similar proposal could recur in a few years has pushed them to leave".
The November Vote: Even a Victory May Not Be Enough
Although the federal government, both chambers of parliament and business lobbies such as Economiesuisse have rejected the initiative, and experts give the referendum on November 30 a low chance of success, the threat remains. Switzerland's reputation for stability, already tarnished by the collapse of Credit Suisse and new financial regulations, would suffer a major blow.
The real danger, Rochat stresses, is the margin of the result. If the proposal loses by a narrow margin, the issue will likely be brought up again in a few years, poisoning the climate of confidence for a decade. “It must be rejected by such an overwhelming majority that it can silence the issue for the next 20 years.”
For wealthy residents, Swiss and foreign, the message is clear: the golden castle is cracked. The very existence of this proposal has shown that predictability, the most precious asset offered by Switzerland, is no longer guaranteed. And in a global world where capital moves with the click of a button, uncertainty is a risk that many are unwilling to take.
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The article Earthquake in Switzerland: 50% hit on inheritance. “Children also affected”. The rich prepare to escape. comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/svizzera-tassa-successione-50-fuga-ricchi-esodo-referendum/ on Sun, 22 Jun 2025 06:00:37 +0000.