Switzerland is a wealthy nation, but as elsewhere, wealth is not evenly distributed. According to SRF, nearly 400,000 Swiss residents have assets exceeding CHF 1 million.
The richest 1% of taxpayers hold 45% of the country’s total wealth, while the bottom 62% own just 3%. The remaining 37% of taxpayers own the remaining 53%.
To join the wealthiest 1%, one needs a net worth of more than CHF 5 million. Wealth among the middle 37% ranges from CHF 100,000 to CHF 5 million, while the lowest 62% have assets between zero and CHF 100,000.
This concentration of wealth has fiscal consequences: the wealthiest end up paying the majority of the nation’s taxes. The top 10% pay around 86% of Switzerland’s wealth tax, and 53% of income tax revenue comes from the top 10% of earners. As a result, Switzerland’s wealthy have a disproportionately large impact on public finances.
This makes an upcoming vote particularly contentious. A proposed initiative would introduce a steep inheritance tax on estates exceeding CHF 50 million, sparking concern among some observers.
Launched in March 2024 by the Young Socialist Party (JUSO), the initiative calls for a 50% inheritance and gift tax on assets over CHF 50 million. The revenue would be earmarked for the ecological transformation of the economy.
Opponents warn the proposal could threaten family businesses, as much private wealth is tied up in company equity. To cover the tax bill, companies might need to be sold or broken up. As a result, many wealthy individuals and families have threatened to relocate abroad.
If the JUSO initiative passes—and assuming all of the wealthy remain in Switzerland—estimates from the University of Lausanne suggest it could raise an additional CHF 2.5 to 5 billion annually.
It’s likely that some wealthy people would leave the country, taking their taxes with them, if the initiative passed. However, predictions vary widely.
The proposal is expected to be voted on this autumn.
More on this:
SRF article (in German)
For more stories like this on Switzerland follow us on Facebook and Twitter.
Leave a Reply