What Does the “No” Mean for Wealth and Succession Planning?

On the 30 of November 2025, the Swiss people and cantons overwhelmingly rejected the popular initiative “For a Social Climate Policy – Fairly Financed by Taxes (Initiative for a Future)” with almost 80% voting “No”.

This continues the series of failed tax policy proposals to introduce new inheritance and capital gains taxes in recent years: the inheritance tax initiative of 2015 and the 99% initiative of 2021 were also clearly rejected.

The Federal Council had recommended rejecting the initiative for economic, fiscal, institutional, and climate policy reasons. It particularly warned that Switzerland’s attractiveness as a place of residence for very wealthy individuals could decrease, and that after relocations, a large part of the potential additional tax base could be lost – in the worst case, resulting in lower revenues for the federal government, cantons, and municipalities.

Status Quo: No Federal Inheritance Tax, Cantonal Diversity Remains

With the rejection of the initiative, the current division of powers remains: the federal government does not levy inheritance or gift taxes; these remain the responsibility of the cantons.

The range is therefore wide – from cantons with inheritance tax rates without exemptions for direct descendants to cantons that have largely abolished inheritance and gift taxes. Thus, cantonal differences – and the importance of the canton of residence – remain highly significant for succession planning.

What Remains of the Discussion – and What Does It Mean for Practice?

For practice, this means that the need for action in succession and wealth planning remains high. Succession issues, the provision for the next generation, and the long-term structuring of assets should not be postponed just because a single proposal has failed.

There are still opportunities for structuring – especially through the choice of canton of residence, staggered gifts over time, marital property agreements, and the targeted use of cantonal allowances and rates.

For internationally oriented families, risks of double taxation, inheritance tax treaties, and limited enforcement possibilities remain central; a coordinated overall structure across several jurisdictions is usually more important than the outcome of a single vote.

Conclusion and Recommendations from RSM

The rejection of the inheritance tax initiative prevents the introduction of a new, central federal tax on large estates and gifts. Switzerland thus remains an attractive location for wealth and residence in international comparison, albeit with pronounced cantonal diversity, which must be specifically considered in succession planning.

However, the political debate on the taxation of large fortunes is likely to continue in another form.

We recommend that wealthy individuals and entrepreneurial families:

review existing wills, marriage contracts, and succession arrangements,
analyse the tax situation in their canton of residence and possible alternatives,
coordinate Swiss planning with international structures (e.g., holdings, foundations, trusts).

We are happy to support you in assessing your situation and in the long-term design of your succession and wealth planning.