Swiss voters have decisively rejected a plan in Sunday's referendum (30 November) to impose a 50% tax on inheritances worth more than 50 million francs, delivering a far stronger backlash than polls had forecast.

The proposal, put forward by the youth wing of the Social Democrats, sought to target the country’s wealthiest families and channel the tax revenue into climate mitigation projects.

Its supporters argued that the country’s richest residents were passing on immense fortunes while younger generations faced the consequences of rising living costs and a rapidly warming climate.

Around 2,500 taxpayers in Switzerland have assets worth more than 50 million francs (62 million U.S. dollars), according to Swiss tax authorities, with a total wealth of about 500 billion francs.

The scale of the defeat surprised campaigners. Final results showed 78% of voters opposed the tax, well above the two-thirds level suggested in recent polling.

Opponents of the initiative warned that such a measure risked driving high-net-worth individuals out of Switzerland, ultimately shrinking the tax base rather than strengthening it.

Swiss officials had urged voters to reject the proposal, arguing that existing fiscal arrangements already struck a balance between competitiveness and social responsibility.

The debate unfolded against a backdrop of growing concern over the cost of living, particularly in cities that rank among the world’s most expensive.

Despite the heavy loss for the plan’s backers, the vote underscored a broader conversation about inequality and expectations for how the country should respond to economic pressures and environmental challenges.

Switzerland is the world's largest wealth management hub, but could lose that crown as early as this year, according to a forecast from Boston Consulting Group.

The country is home to some of the most expensive cities on the planet and anxiety about the cost of living has been gaining currency in local politics.

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