National stereotypes can be a dangerous thing, but some exist for good reason. Take Switzerland’s reputation as a haven for private wealth, which has been based on firm foundations, such as its banking privacy laws and friendly tax regime. Little wonder the Mitteleuropean nation topped a recent UBS ranking of countries according to average wealth per adult. But could things be about to change?
A left-wing youth movement in the country (led by Mirjam Hostetmann) has gathered 100,000-plus signatures in support of its proposal for a federal inheritance tax on the super rich. The mooted levy would see 50 per cent of the value of estates worth CHF 50 million or more syphoned into government coffers to fund projects related to climate action and other causes.
Having reached the milestone of 100,000 supporters, the proposal must now go to a national referendum, which will take place in November. If more than 50 per cent of the Swiss electorate votes in favour and a majority of the 26 cantons (counting full and halfcantons) also support the proposal, it will pass into law.
[See also: Meet Mr Wealth Tax: Arun Advani, the academic shaping Labour policy]
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But what are the chances of this actually happening?
In Geneva and Zurich, private bankers and other professionals in the private wealth sector worry that even if the proposal fails to garner the votes it would need, the public debate is already damaging Switzerland’s reputation as a stable home for assets.
The Swiss press has already documented the cases of several wealthy individuals who have relocated to Italy. Peter Spuhler, the owner of Stadler Rail and one of Switzerland’s wealthiest individuals, blasted the proposal as a ‘disaster for Switzerland’, and warned that it could leave his heirs facing a bill of up to CHF 2 billion.
[See also: The Spear’s Tax & Trust Indices 2025]
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It has also emerged that Renaud de Planta, who stepped down in mid-2024 from his role as senior partner at private bank Pictet, has relocated to Italy, while still retaining seats on Pictet’s board and on the Swiss National Bank’s Bank Council.
A PwC survey found that 78 per cent of those who would be affected are already considering moving abroad or restructuring family wealth ahead of time.
However, there are many who characterise the furore as a storm in a teacup. Xavier Isaac, CEO of Swiss trust company Accuro, notes that there appears to be limited support for the proposed tax, even from the Swiss federal authorities, ‘despite them being the intended recipients of new tax revenues’. Public opinion polls show that around two thirds of voters are against the initiative.
As a result, Isaac does not see the vote ‘as damaging Switzerland’s reputation on a pan-European platform’. And although he personally does not ‘anticipate an exodus of Swiss-based wealthy families or entrepreneurs on the back of the initiative’, he does allow that ‘the issue of growing inequalities between the rich and the poor remains to be addressed’.
