- with readers working within the Insurance industries
JUSO proposal rebuffed
The initiative of the Young Socialists Switzerland (JUSO) proposed the introduction of a federal tax of 50% on the estates and gifts of individuals exceeding CHF 50 million in value. The initiative would have obliged the Confederation to issue rules aimed at preventing tax avoidance, including measures relating to emigration from Switzerland. Revenue raised by the tax would have been allocated to combatting the climate crisis.
With the rejection of this initiative, Switzerland will continue to have no national inheritance and gift tax, nor any associated emigration taxation.
Existing cantonal rules still apply
In Switzerland, the authority to levy inheritance and gift taxes lies with the cantons in which the deceased or donor lived. In addition, the cantons in which real estate is located also hold taxation rights. With the exception of the cantons of Schwyz and Obwalden, all cantons levy an inheritance and gift tax. The canton of Lucerne does not levy a general gift tax, but includes gifts made during the five years before the donor's death in the inheritance tax.
Surviving spouses are exempt from inheritance and gift taxes in all cantons. In nearly all cantons, descendants are exempt (with the exceptions of Appenzell Innerrhoden, Lucerne, Neuchâtel and Vaud). For taxpayers assessed on a lump-sum basis (forfaitaires), special rules may apply – in the canton of Geneva, for instance, inheritance and gift taxes may be charged even on transfers to spouses and descendants.
As the relationship between the beneficiary and the deceased or donor becomes more distant, inheritance and gift tax rates generally increase. Depending on the canton, unmarried partners may also benefit from reduced tax rates or specific reliefs, including full exemption in certain circumstances.
Charitable organisations may receive bequests or gifts tax-free, provided their structure meets the relevant requirements. Several cantons also provide particular rules for business successions.
This canton-based system has proven reliable in practice. If uncertainties arise, the tax treatment of an estate plan can be clarified in advance by means of a binding tax ruling.
Switzerland remains an attractive place to live
Following this clear result, Switzerland reaffirms its stable tax framework – an essential location advantage for individuals planning their wealth structure and succession with foresight. The strong rejection of the initiative also demonstrates the broad public acceptance of the current inheritance and gift tax regime.
In most cantons, it also remains possible – provided certain conditions are met – to be taxed on a lump-sum basis for income and wealth tax purposes. This is not just fiscally advantageous for internationally mobile individuals with complex asset structures, but also offers simpler administration and enhanced privacy. In addition, Switzerland remains attractive for ordinarily taxed individuals due to the comparatively low income tax rates in certain cantons, and the tax-free treatment of private capital gains.
Political continuity, a reliable legal framework and liberal immigration rules continue to contribute to Switzerland's attractiveness.
Pre-migration planning is essential
For individuals moving to Switzerland, planning ahead of their relocation continues to be key. This includes the structuring of international assets, the timing of gifts, distributions or reorganisations, as well as clear succession planning. In cross-border scenarios, coordination with foreign legal and tax considerations is indispensable.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
