Swiss voters have rejected a proposed federal inheritance tax of 50% for the ultra-wealthy in a referendum held on Sunday.
The proposal was rejected by 79% of voters, aligning with expectations. Concerns about a potential exodus of wealthy individuals and a subsequent loss of tax revenue were key factors in the opposition.
The tax initiative was introduced by the Young Socialists and aimed to fund climate measures using revenue from taxing inheritances and gifts valued over 50 million Swiss francs (approximately €53 million).
Support for the proposal was low across all cantons. In Geneva, 68.6% of voters opposed the measure, with higher rejections in Vaud (70.5%) and Jura (71.4%. German-speaking cantons showed even greater opposition, including Zurich (74.6%), Graubünden (83.9%), Sankt Gallen (86.5%), and Schwyz (91%).
The proposal also sought to apply the tax retroactively to prevent wealthy individuals from moving their assets abroad. It was estimated to affect around 2,500 people, representing the wealthiest 0.03% of the population.
Switzerland, a nation historically popular among affluent individuals, already imposes some wealth taxes. Its allure also stems from banking secrecy laws, which attract substantial foreign capital.
In a separate referendum, Swiss voters overwhelmingly rejected a proposal for mandatory civil service. The measure, which 84% opposed, would have required all young citizens, including women, to serve the community or join the military.
