Introduction

On 30 November 2025, Swiss voters will decide whether to introduce a federal tax on gifts and inheritances exceeding CHF 50 million, subject to a flat rate of 50%. This represents a significant shift for a country where fiscal sovereignty over inheritance and gift taxation traditionally lies solely with the Cantons, and the proposal raises several legal concerns.

Origin of the Initiative “For a Social and Fiscally Fair Climate Policy”

On 8 February 2024, the popular initiative “For a Social Climate Policy Financed in a Fiscally Fair Manner (Future Initiative)” was formally submitted.

The proposal seeks to introduce a federal tax on inheritances and gifts, applicable only to amounts exceeding CHF 50 million, at a flat rate of 50%. The Cantons would be responsible for collection and would retain one-third of the revenue, while the remaining two-thirds would go to the Confederation. The funds would be earmarked exclusively for socially equitable measures to combat the climate crisis. The Cantons would retain their authority to levy their inheritance taxes.

A similar initiative was rejected in 2015. That proposal—entitled “Tax Million-Franc Inheritances to Finance Our AHV”—also aimed to introduce a federal inheritance and gift tax. It proposed a 20% tax on gifts and inheritances made by individuals domiciled in Switzerland, insofar as the transferred assets exceeded CHF 2 million.

Position of the Swiss Government

In its Message dated 13 December 2024, the Federal Council endorsed the climate-related goals of the initiative but criticised the proposed financing mechanism, viewing it as inconsistent with Switzerland’s current climate policy, which is based on the principle of causality. Switzerland is already committed to achieving climate neutrality by 2050 through targeted legislation and coordinated strategies implemented by the Confederation and the Cantons.

According to the Federal Council, the proposed new tax would generate significantly less revenue than expected, as it would likely prompt many wealthy taxpayers to relocate abroad. A study estimates that up to 98% of taxable assets could evade taxation, negatively impacting public revenues and the country’s overall attractiveness. At present, these individuals already contribute substantially to public finances, including through progressive income and wealth taxation that supports climate policy.

The initiative would also undermine the Cantons’ fiscal autonomy by introducing a federal tax that restricts their competencies and earmarks the proceeds exclusively for climate policy. Of particular concern is the proposed retroactive application, which creates legal uncertainty and could incentivise taxpayers to move their residence to other jurisdictions.

For these reasons, the Swiss Government recommended rejecting the initiative.

Both houses of Parliament - the National Council and the Council of States - rejected the proposal. This latter will now be submitted to a popular vote on 30 November 2025.

Risks and Critical Issues of the Initiative

From a legal perspective, one of the main concerns surrounding this initiative is the lack of a clear coordination mechanism between the proposed federal tax and the existing cantonal inheritance and gift taxes. In Switzerland, only the Cantons currently hold taxing authority in this area—not the Confederation. This is why the initiative calls for the introduction of a new article in the Federal Constitution.

The proposed tax could lead to cases of vertical double taxation, where the same inheritance or gift would be subject to tax both at the federal and cantonal levels. This could create significant legal uncertainty and potentially increase litigation.

Another sensitive issue relates to the extraterritorial scope of the measure. The initiative text does not clarify how to handle, for example, foreign assets belonging to a testator domiciled in Switzerland, or assets held in trusts or foundations with beneficiaries in Switzerland. The lack of specific provisions coordinating with existing international inheritance tax treaties could result in tax conflicts between jurisdictions, generating considerable legal and operational uncertainty for taxpayers and professionals.

Furthermore, the risk of capital flight is already becoming apparent since the launch of the initiative. Ultra-high-net-worth individuals may choose to relocate to more tax-friendly jurisdictions (such as Italy). The introduction of this tax could result in greater revenue losses than the proceeds it aims to generate.

Also from a legal standpoint, the decision to make the measure immediately applicable from the date of the vote—despite the absence of implementing legislation—raises serious concerns related to retroactivity. Inheritances opened and gifts made on or after voting day would automatically be subject to the new tax. This approach challenges the principles of legal certainty and legitimate expectations, which have long been cornerstones of the Swiss legal system.

Conclusions

The federal popular initiative represents far more than a mere tax proposal. It is, in fact, a true litmus test for the Swiss model, as it challenges the delicate balance between fiscal federalism and the ambitions of the ecological transition. At stake is not only the introduction of a new levy, but also Switzerland’s international positioning as an attractive hub for private wealth management.

Given the clear rejection of the initiative by both the Swiss Government and the Swiss Parliament, as well as survey results showing that a clear majority of the Swiss population opposes it, most practitioners do not expect it to pass in the national vote.

At the same time, the period leading up to 30 November 2025 offers a unique—and unlikely to be repeated—opportunity to thoroughly review family wealth structures, existing succession planning tools, and intergenerational wealth transfer strategies. Now is the right time to proactively and clearly assess which assets could fall within the scope of the proposed tax, which legal instruments may prove useful, and how to ensure continuity in wealth governance, regardless of the outcome of the vote.

Our law firm is available to support you in this process of review and restructuring. We offer tailored advice in Italian, English, German, and French, with a multidisciplinary approach that integrates legal, tax, and strategic expertise. We can help you evaluate the potential impact of the new tax at both federal and cantonal levels and prepare suitable alternative scenarios.

If you have any questions or need assistance with tax matters, do not hesitate to contact our specialists in Geneva, Lugano, or Zurich. We will be pleased to assist you.