walden, while spouses and direct descendants are mostly exempt in all the other cantons. Tax rates vary considerably, from 0 to 49 per cent, depending on the canton. Neighbouring countries also take different approaches. The German system uses progressive tax rates but grants numerous exceptions, on company assets for example. In Austria, inheritance tax at federal level was abolished completely in 2008. Italy, The initiative would affect around 2,900 taxpayers, who own total assets worth 560 billion francs – or 20 per cent of all taxable wealth in Switzerland. meanwhile, has a relatively low inheritance tax rate of four per cent and offers tax breaks to attract high-networth individuals. France is the most expensive place to inherit wealth, with tax rates of up to 45 per cent depending on the size of the estate. If you inherited 100 million euros, you would have to pay the French state 45 million euros. This is much more than what JUSO is proposing for Switzerland: after deducting the tax-free amount, you would receive a tax bill of 25 million francs for the same amount. The initiative aims to prevent a situation in which the super-rich would be able to dodge the new inheritance tax by moving to a different country. It proposes a legally contentious retroactive clause to this effect, which the Federal Council has already said would be unworkable in its current form. On 30 November, voters will decide whether that becomes an issue. Grossmann calls inheritance tax “the least painful tax of all”, because inheritors don’t earn the assets bequeathed to them but are simply in the fortuitous position of having been born into wealth. A repeat of 2015? The Federal Council and the conservative majority in parliament flatly reject the initiative. They say it would make Switzerland less attractive as a domicile for wealthy individuals, not least given that the rich already contribute a lot to public finances through wealth tax. One per cent of taxpayers pay over five billion francs, or nearly 40 per cent of direct federal tax revenue. The SP and the Greens are the only parties supporting the initiative, arguing that the gap between rich and poor is growing. Given the political balance of power, it would be astonishing if the proposal were to be approved at the ballot box. According to a poll conducted in August 2024 by the free newspaper “20 Minuten”, 58 per cent of voters are against the initiative. No updated poll was ready at the time of our editorial deadline. Ten years ago, a left-wing initiative to introduce inheritance tax at federal level was clearly rejected, with 71 per cent saying no. The aim back then was to charge 20 per cent tax on estates worth two million francs and upwards – to help fund the state pension. The new scheme would now target the super-rich. Variation from canton to canton Inheritance tax already exists at cantonal level, albeit in different forms. No such tax exists in Schwyz or ObTackling climate change requires the super-rich to pay their fair share, argues JUSO President Mirjam Hostetmann. Stadler Rail supremo Peter Spuhler, a high-profile opponent of the initiative, has threatened to move abroad. Photos: Keystone Swiss Review / October 2025 / No.4 21
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