The Economist has covered Switzerland’s recent referendum on a proposed 50% federal inheritance tax for ultra-high-net-worth estates, detailing both the decisive public rejection and the strong reactions it triggered among the country’s business leaders.
The proposal – put forward by the Young Socialists – sought to impose Switzerland’s first federal inheritance tax on estates above 50 million francs, with revenues earmarked for climate initiatives. Although the measure was rejected by 78% of voters, it brought unusually vocal opposition from Swiss entrepreneurs, who warned the tax would drive wealth and business out of the country.
The article sets the debate within Europe’s broader landscape of inheritance taxation, noting growing pressure on governments facing high debt levels to revisit wealth and estate taxes. While many European countries apply significant inheritance levies, Switzerland has historically attracted global wealth through low taxes, political stability, and business-friendly policies.
Among those commenting, David von Rosen criticised the proposal as unjust and punitive toward wealth creators. Although the referendum failed, von Rosen cautioned that such initiatives could harm Switzerland’s reputation as a tax-friendly hub and indicated he may relocate fully to Dubai should the tax environment shift further.
Read the full article here.
