Facts about the inheritance tax initiative
The popular initiative, “For a social climate policy – fairly financed through taxation (initiative for a future),” which was introduced in March 2024, requests for the implementation of an inheritance and gift tax at the federal level, set at a rate of 50%. This tax would be in addition to the existing inheritance and gift taxes at the cantonal and communal levels. All gifts and an individual’s inheritance would be subject to retroactive taxation, effective as of the date the initiative will be accepted. A one-time tax-free amount of CHF 50 million could be claimed. Moreover, the number of recipients of the inheritance is irrelevant, as the inheritance tax is levied on the inheritance itself and not on the inheritors or donees.
A national register must therefore be maintained to ensure a complete record of gifts and inheritances. The text of the initiative prohibits the granting of exemptions and prescribes additional measures to prevent tax avoidance, such as in the event of a relocation abroad, a business succession, or donations to charitable institutions.
Time horizon: What's next?
The Federal Department of Finance has been assigned the task of drafting the dispatch. The Swiss Parliament will address the initiative in 2025, which means that the popular vote on the introduction of an inheritance tax in Switzerland could take place in 2025 at the earliest, but probably not before 2026.
Outlook and recommendations
We believe the initiative may have a negative impact on Switzerland’s business environment and legal certainty. It is currently unclear whether the initiative will uphold the constitutional right to prohibit confiscatory taxation or the ban on retroactivity. Political debate has begun.
We recommend examining the options for action in a timely manner to protect assets. There is sufficient time to initiate planning and set a course of action.
Your contact
Seraina Waldburger
Tax
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