The Future Initiative calls for an inheritance tax with a tax rate of 50% from a tax-free amount of 50 million on estates and gifts as well as the use of tax revenue for climate protection measures.
The Young Socialist Party (JUSO) submitted the initiative in February 2024, which is partially supported by the Social Democratic Party and the Green Party in Switzerland. The initiative is currently being examined by the government (duration approx. 12/18 months) and then submitted to Parliament (duration approx. 18/24 months). Once the parliament has made a decision, the government will determine when the Swiss people will vote. However, the Federal Council has already made it clear that the initiative must be implemented in accordance with the law and the Swiss constitution and that moving abroad cannot simply be qualified as tax avoidance and sanctioned with tax consequences. A so-called exit tax is not an topic in Switzerland.
If the initiative is accepted, a range of different tax structuring options will have to be examined. It is conceivable, for example, to move the assets into a foundation and hand over control of them to one’s children before the initiative is adopted. The assets would then be attributed to the children for tax purposes and inheritance tax would be averted before the initiative comes into force. If, on the other hand, the initiative is rejected, the person concerned could liquidate the foundation again tax-free. Another option would be to donate the assets before the initiative is accepted while retaining the donor’s right of usufruct.
At the same time, Marc Jost (EVP) submitted a parliamentary initiative that provides for a tax of 10% on estates of CHF 5 million or more. This will now be discussed in the parliamentary committees. If both committees agree, the National Council committee can draw up a concrete proposal.
The development of the initiative, in particular the drafting of the transitional provisions and the specific scope of application or what would fall within the estate, must be kept under review. We will be happy to assist you in reviewing whether you are affected by the initiative and work out possible alternatives for structuring your assets.
No guarantee can be given for the topicality and completeness.