On 30 November 2025, Swiss voters rejected the introduction of a federal inheritance and gift tax. The proposal, submitted as the Young Socialists’ Initiative for the Future, sought to introduce a 50 percent federal tax on gifts and inheritances exceeding CHF 50 million. With a clear majority opposed, the outcome confirms that Switzerland will maintain its existing decentralised approach, where inheritance and gift taxes are determined solely at cantonal and municipal levels.
The result means that each canton retains full discretion over whether and how to levy inheritance and gift taxes. Current practices differ significantly across the country. Schwyz and Obwalden do not levy inheritance or gift taxes, while Lucerne does not levy any gift tax. In all cantons that impose such taxes, spouses are exempt. In virtually all cantons, descendants are also exempt, with the exceptions of Appenzell Innerrhoden, Neuchâtel and Vaud. Under established principles, inheritance tax is paid by the heir in the canton of residence of the deceased, while gift tax is paid by the recipient in the canton of residence of the donor.
This decentralised framework aligns with Switzerland’s commitment to fiscal federalism and preserves its longstanding position as a competitive jurisdiction for wealth planning. Switzerland continues to offer a stable regulatory environment and favourable conditions for intergenerational wealth transfers, particularly where direct descendants and spouses are concerned.
For families and business owners, the referendum outcome provides continuity and certainty. Switzerland will not adopt a federal 50 percent tax on large estates or gifts, and existing cantonal regimes remain unchanged. The absence of inheritance and gift taxes in several cantons, combined with broad exemption policies, reinforces Switzerland’s competitiveness in succession planning.
For international families with assets in multiple jurisdictions, structured estate planning remains essential. The coordinated use of trusts, foundations, governance frameworks and other planning structures helps navigate differing tax and inheritance rules, protect family assets and mitigate exposure to foreign succession regimes. These measures provide clarity around succession and support long-term wealth preservation across borders.
