Swiss To Vote On 50% Inheritance Tax That Risks Exodus Of The Super-Rich

Switzerland is set to hold a national referendum in November on a proposal to impose a 50% inheritance tax on the wealthiest individuals, with a threshold of 50 million francs (around $63 million). The proposal, led by the Young Socialists, would use the confiscated wealth to combat climate change and does not exempt surviving spouses or direct descendants. The measure is not supported by the legislative Federal Assembly or the executive Federal Council, but has garnered enough signatures to be put to a nationwide vote. Opponents argue that the tax would lead to a mass exodus of wealthy individuals, citing the UK's recent experience with a similar tax. The UK's 40% inheritance tax on non-doms has already triggered an exodus of wealthy individuals to countries like Switzerland, Italy, and the UAE. Swiss tax advisors and wealth managers warn that even if the proposal is defeated, a narrow margin of victory could still deter wealthy individuals from staying in the country. To become law, the proposal must receive a majority of support nationwide and in a majority of Switzerland's 26 cantons. The proposal has already harmed Switzerland's ability to attract wealthy individuals fleeing the UK's inheritance tax, with many opting for alternative destinations instead. Wealthy individuals, including business owners, are speaking out against the proposal, calling it a "disaster for Switzerland" that would seize billions of francs and harm family businesses. A consortium of opponents is working to dissuade voters from supporting the tax, arguing that it would cause high economic costs and threaten the existence of family businesses.