Inheritance tax Federal Council: Juso initiative could prompt wealthy people to move away

The Federal Council recommends saying no to the national inheritance tax on estates of over CHF 50 million called for by the Juso. Such a tax could reduce tax revenues overall, as many wealthy people are likely to leave Switzerland.

Keystone-SDA

13.10.2025, 19:31

SDA

With their popular initiative "For a social climate policy - fairly financed through taxation (Initiative for a future)", the Juso are calling for a 50% tax on estates and gifts from individuals of more than CHF 50 million. The first 50 million would be tax-free.

The federal government and cantons would have to use this revenue to combat global warming. The cantons would be allowed to retain the inheritance taxes levied today. The Initiative for a Future will be put to the vote on November 30. The Federal Council and Parliament recommend a "no" vote.

The tax would greatly reduce Switzerland's attractiveness for wealthy individuals, Finance Minister Karin Keller-Sutter told the media in Bern on Monday. The Federal Tax Administration estimates that around 2,500 taxpayers would be affected and that the potential of the new tax would be over CHF 4 billion.

The Juso inheritance tax initiativeRich foreigners are apparently avoiding Switzerland

The Federal Council argues that the new tax would make Switzerland less attractive for people with wealth. If the richest people moved away, there would not only be less inheritance tax, but also less income and wealth tax. The tax would also jeopardize jobs because companies could move abroad.

The Federal Council also refers to the current climate policy. The federal government provides two billion francs in subsidies every year. Furthermore, the tax demanded by the Juso does not create any incentives for climate-friendly behavior.