Swiss voters will decide whether to raise inheritance tax for the super-rich
Number of billionaires: 57Total wealth: $125 billion Known as the playground of the rich and famous, Switzerland ranks 8th in the global billionaire sweepstakes and 7th as home to those worth $30 million and over, or the ultra-rich. Switzerland has one percent—59 percent—of the billionaire population and 59 percent of the population. The group controls more than 19 percent of its total fortune. On average, these billionaires are worth $2.2 billion each. Despite the decline across Europe
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Switzerland remains a haven for the ultra-rich. Its 300 richest residents are collectively worth 850 billion Swiss francs, or $1 trillion, according to the business magazine Bilanz. But on Sunday, voters will go to the polls to vote on the inheritance tax that has plagued them.
A proposal to impose a 50% tax on every inheritance and gift over 50 million Swiss francs is likely to be defeated. A recent poll gave only 30% support.
But a close follower of the talks told CNBC that the initiative has struck a chord with wealthy individuals and family-owned companies since it was proposed in 2024. Swiss billionaire Peter Spuhler, founder and owner of Stadler Rail, has threatened to leave the country if the tax law is passed. He told Swiss daily Tagesanzeiger that his family would struggle to pay such taxes as his wealth was tied up in companies.
Stefan Legge of the University of St. Gallen in Switzerland told CNBC on Friday, “A lot of people who will be affected have talked to their advisers and their tax lawyers and done paperwork to make sure they’re ready to get out if necessary at this time of year, a week before the final vote.”
‘The super rich are like queens on a chessboard’
Legge, who has researched the potential effects of the tax, said: “If you target the super-rich, they are like queens on a chessboard.”
“They are very mobile. They have many options to optimize their taxes,” he added.
Kurt Moosmann, president of the Swiss Single Family Office Association, told CNBC that the proposal “created a certain uncertainty among family offices and kept foreign investors away from Switzerland.”
Legge said the 50% tax is likely to reduce tax revenue. He said about 2,000 people, or 0.3% of Switzerland’s population, would be affected, and that they currently pay 5 to 6 billion Swiss francs a year.
The powerful Swiss business lobby Economiesse has called the inheritance tax debate an “unnecessary and harmful discussion”.
“We depend on good taxpayers to finance our state,” he warned.
Legge said Switzerland faced competition from wealth centers in the Middle East and other countries in Europe, but said Switzerland was “still very strong” on finding the right balance between taxes and proper public services.
Asked if wealthy clients are nervous, Swiss private bank EFG International CEO Giorgio Pradelli told CNBC on Tuesday, “If you look at the overall competitive landscape, Switzerland remains the No. 1 destination for international private banking and wealth management. We have an ecosystem that is very healthy and strong.”
The proposal came from the youth wing of the country’s left-wing Social Democrats. If successful, the money raised from the tax would fund policies to combat climate change.
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