Swiss voters reject federal inheritance tax proposal

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.

How we can help

Working with leading Swiss law firms on the ground, our Geneva team are able to deliver coordinated UK-US-Swiss advice for clients navigating cross-border wealth planning and relocation strategies.