Trendpills
Switzerland is set to hold a high-stakes referendum on November 30, 2025, to decide on introducing a new federal inheritance tax targeting the nation's wealthiest individuals. The popular initiative, titled “For a Social and Fiscally Fair Climate Policy,” proposes a flat 50% tax on inheritances and gifts exceeding a threshold of CHF 50 million. The revenue generated from this tax would be earmarked for financing climate action policies, linking wealth redistribution directly to environmental goals.
The proposal stems from a left-wing youth movement that successfully gathered the more than 100,000 signatures required to trigger a national vote. Proponents argue the measure is a necessary step towards greater fiscal fairness and a crucial tool for funding the country’s ecological transition. The initiative represents a significant challenge to Switzerland's long-standing status as a global wealth haven, which has been built on its low-tax regime and financial privacy.
However, the initiative has met with strong opposition from business circles and the Swiss government. The Federal Council officially recommended rejecting the proposal in December 2024, citing significant risks to the economy. Opponents warn that introducing such a tax would undermine Switzerland's competitiveness and could trigger a flight of capital and wealthy residents. There are also deep concerns about the impact on the country's economic attractiveness and its well-established wealth management industry. Traditionally, inheritance taxes in Switzerland are levied at the cantonal level, and the introduction of a federal tax would mark a major shift in the country's fiscal federalism.
As the vote approaches, the debate highlights a fundamental tension between social equity, climate funding, and the economic model that has made Switzerland one of the world's richest countries per capita. While the initiative's backers see it as a fair contribution from those who have benefited most, its detractors fear it could dismantle a core pillar of the nation's prosperity. Early analyses and official government opposition suggest the initiative faces an uphill battle to win majority support from voters, who will ultimately decide the fate of a proposed 50% federal tax on inheritances and gifts.
