Inheritance tax referendum spooks Swiss super-rich

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Lawyers and bankers in Switzerland warn of the exit of the UK for the wealthy before the referendum on the inheritance tax by 50 percent for the rich.

The nation in the Alps will maintain a popular vote in November to provide a federal tax on inheritance and gifts worth more than SFR50Mn ($ 61 million). Unlike the current Kantonian duties that still apply, the proposal does not include exemption for husbands or direct grandchildren.

The vote, which is looming on the horizon, comes after the UK ignited a rush to the wealthy foreigners by making the universal assets of the unique population vulnerable to inheritance tax-a step it is now considering reflection. Meanwhile, the judicial states such as Dubai and Italy rose efforts to attract the rich.

“With regard to Switzerland’s opportunity to attract people who leave the United Kingdom, the damage happened. The timing was terrible,” said Georgia Fotio, a lawyer who advises private customers in the Stayger law. “Not everyone was prevented from coming, but more chose Italy, Greece, the United Arab Emirates and other places instead.”

The new tax was proposed by the Left Youth Socialists Party in 2022 as a means of collecting funds to address the climate crisis. Under Swiss law, such proposals go to a public vote if they are supported by 100,000 signatures.

“The whole country must vote on the suggestion completely as a huge result of the proposal to be presented, creating unnecessary uncertainty,” said Friedrik Roche, the Geneva -based Lombard Auder, said. “The simple truth that exists is not useful.”

Peter Spohler, the owner of Rolling Giant stocks in Strettle, and one of the richest people in Switzerland, has publicly criticized the proposal as a “disaster for Switzerland”, saying that his heirs can hand over up to SFR2BN.

The possibility of new tax risks increases Switzerland’s reputation for stability, which has been achieved several times in recent years, including through the demise of Credit Suisse and the introduction of new financial regulations.

“Switzerland has always been the country with an excellent environment when it comes to gift and inheritance taxes. We have some of the largest family companies we consult and will have a big problem” if the proposal is passed.

The new tax will place Switzerland over other judicial states such as Italy, where inheritance taxes range between 4 percent and 8 percent, or Dubai and Hong Kong, which has no inheritance or gift tax.

Lobby Group Economieses said this week that the “Switzerland” initiative as a reliable and internationally stable work site.

With the approaching vote, some people already leave, while others decide to move to the country.

Rushat said that Lombard Outre “witnessed Swiss -based Swiss families that decided to endure any danger and move before the vote,” while foreign agents decided not to move to the country because the “very devastating” proposal had created uncertainty before the vote.

Another private banker, based in Zurich, said that the higher agent has moved to Liechtenstein before the vote because, even if the proposal did not pass, “uncertainty about whether there is another person in a few years that made them want to move.”

However, other banks said that many wealthy people still transfer money to Switzerland, which is a long haven in unconfirmed periods.

“We are witnessing very large flows from everywhere at the present time,” said a third executive in a private bank, adding that the Americans in particular have climbed efforts to transfer money to the country under the Trump administration.

“He did not participate in the opinion that this had damaged the call of Switzerland.”

“We have seen some people waiting to know the potential introduction, yes,” he said. “But frankly, the people we are dealing with are smart and understand that Switzerland will not provide this easily.”

The Federal Council, the country’s executive authority, rejected the initiative, as well as the higher and lower homes of parliament, and experts have given low tax opportunities to succeed in the November 30 referendum, given the historical aversion to Swiss citizens of wealth taxes. To be approved, it takes a majority of the majority of the population and the majority of the 26 cantons.

However, Rusha said that if the proposal wins or lost a small margin, it is possible that the case will be reviewed within a few years, which will harm the possibility of predicting in Switzerland. “It should be voted on it with an overwhelming majority [that this possibility can] I was placed on the bed for 20 years. “