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On 30 November 2025, Swiss voters decisively rejected the 'Initiative for a Social Climate Policy Financed Fairly Through Taxation', which sought to introduce a 50% federal tax on estates and gifts exceeding CHF 50 million (approximately £46.7m). Launched in March 2024 by the Socialist Youth ('JUSO'), a youth organisation affiliated with the left-wing Social Democratic Party, the initiative aimed to fund climate projects through a federal inheritance tax. 78.3% of the electorate voted against it.
Impact on wealth migration
Unfortunately for the Swiss Federal Treasury, the proposal coincided with the UK Conservative Government's announcement that it would abolish the 'non-dom' regime, a change later implemented by the Labour Government. The prospect of a federal inheritance tax likely deterred many high-net-worth individuals who might otherwise have considered relocating to Switzerland under its lump-sum taxation regime, the 'forfait fiscal'.
The proposed threshold was exceptionally high compared with the UK's £325,000 nil-rate band and even the US federal estate tax exemption of $13.99 million. Nevertheless, some will have feared that it signalled a shift towards higher taxation in a country long valued for its predictability, stability and rational tax policy. Switzerland's loss became Italy's gain, thanks to its flat tax and immigration policies.
Switzerland post-Vote: open for business
With the initiative soundly defeated, Switzerland's reputation remains intact and the country is very much 'open for business' for wealthy UK residents seeking a tax-friendly environment. Among other attractions, the country continues to offer:
- No federal inheritance tax - taxation remains at the cantonal level, with most cantons exempting spouses and direct descendants.
- Legal certainty and competitive ordinary tax rates
- No capital gains tax on privately held movable assets.
- An extensive network of double tax treaties.
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