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A gathering of wealth:
\nonlooker at an annual horse race in St Moritz. <\/p>\n
Keystone \/ Christian Beutler <\/p>\n
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Tax the super-rich in Switzerland on their inheritance and use the money to tackle the climate crisis: this is what the Young Socialists party is proposing. Opponents, including the federal government, warn of losses and cutbacks for the Swiss economy.\n<\/p>\n
This content was published on <\/p>\n
October 8, 2025 – 09:00\n<\/p>\n
The words \u201cinheritance tax\u201d do not actually appear in the title of the initiative. The full name is \u201cFor a social climate policyExternal link<\/a> \u2013 financed through fair taxation (Initiative for a Future)\u201d. Swiss voters will cast their ballots on November 30.<\/p>\n What is it about?<\/p>\n In common parlance, the proposal is referred to as the \u201cinheritance tax initiative\u201d. This is because it aims to introduce an inheritance tax on very large fortunes.<\/p>\n Specifically, the text calls for a 50% tax to be levied whenever someone bequeaths or gifts more than CHF50 million ($63 million) to their descendants. The tax would be payable on the amount exceeding this CHF50 million. The funds generated would be used to combat climate change.<\/p>\n The initiative thus combines two aims: higher taxation of the largest fortunes on the one hand and measures to tackle climate change on the other.<\/p>\n These goals tie in with two global trends: tax-the-rich and climate justice. In 2024, for instance, the G20 countries resolved to push for higher taxes for the super-rich<\/a>.<\/p>\n A 2022 demonstration with a clear message in Germany. <\/p>\n Keystone <\/p>\n One proposal under discussion is a 2% tax on individuals with more than $1 billion (CHF1.6 billion) in wealthExternal link<\/a>. The concept of climate justice (\u201ccarbon inequality\u201d)External link<\/a> has also been addressed globally for some time.<\/p>\n In most countries today, inheritance tax accounts for a small proportion of tax revenue, as illustrated by this graph:<\/p>\n Who would be affected by the initiative?<\/p>\n The federal government estimates that around 2,500 people in Switzerland have assets above CHF50 million. Together, they hold an estimated CHF500 billion. A study by the University of LausanneExternal link<\/a> concluded that the initiative would mainly affect the around 300 households with assets of over CHF200 million.<\/p>\n According to business magazine BilanzExternal link<\/a>, Switzerland is currently home to 152 billionaires. As such, it has one of the highest densities of billionaires in the world<\/a>: 17 billionaires per million inhabitants.<\/p>\n Inheritance tax in Switzerland: the situation to date<\/p>\n Switzerland does not have a uniform, federally regulated inheritance tax. The individual cantons, and in some cases municipalities, set their own rules and rates. As a result, several dozen different taxation options exist.<\/p>\n In most cantons, direct descendants are exempt from inheritance tax or there are high exemption thresholds. The cantons of Appenzell Inner Rhodes, Vaud and Neuch\u00e2tel are exceptions here.<\/p>\n Inheritances are taxed at the relatively low average rate of around 1.6% in the cantons. This was not always the case. \u201cThe tax burden on wealth and inheritances has been significantly eased over the past three decades,\u201d a study by the University of LausanneExternal link<\/a> found.<\/p>\n A federal tax on inheritances worth over CHF2 million was already mooted in 2015. The proceeds were to be used to fund the old-age and survivor\u2019s insurance (OASI) pension system. When it came to the vote, however, the initiative \u2013 which was put forward by the Evangelical People\u2019s Party, the Social Democrats and the Greens \u2013 was resoundingly rejected by the people, with 71% against, and by the cantons.<\/p>\n Of note for the Swiss Abroad and their descendants: if a testator\u2019s last residence was abroad, there is usually no inheritance tax in Switzerland.<\/p>\n How does Switzerland tax high-net-worth individuals?<\/p>\n Here, the situation is even more uneven, as wealth taxExternal link<\/a> is the responsibility of both the cantons and the municipalities. The federal government stays out of it.<\/p>\n Wealth tax is only due if a person\u2019s assets exceed a fixed exemption threshold. In some cantons this is CHF100,000 while in others it is CHF1 million. This makes the Swiss wealth tax \u2013 which is unique in the world \u2013 a real \u201ctax on the rich\u201d.<\/p>\n Wealth tax rates are progressive in most cantons, meaning that the higher the assets, the higher the tax rate. As a result, the richest 10% pay around 86% of wealth tax.<\/p>\n The following chart shows how the 26 Swiss cantons tax wealth:<\/p>\n Considerable taxpayer: billionaire Andr\u00e9 Hoffmann. <\/p>\n Keystone \/ Alessandro Della Valle <\/p>\n As part of a study, economists from the federal technology institute ETH Zurich calculated the tax burden of Roche heir Andr\u00e9 Hoffmann. His estimated assets amount to around CHF2.6 billion. According to the institute\u2019s model calculationExternal link<\/a>, Hoffmann pays some CHF20 million in taxes on this wealth annually in canton Vaud.<\/p>\n Switzerland thus does have a \u201cminimum tax for the rich\u201d, writes the KOF Swiss Economic Institute, which is part of ETH Zurich. The wealth segment of the super-rich targeted by the initiative is thus already contributing to tax revenues. In 2022, CHF9 billion poured into the cantons and municipalities from wealth tax, making up one-tenth of their total revenue.<\/p>\n![\"poster](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/10\/528733365_highres.jpg\")
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