Switzerland has long welcomed the ultra wealthy. A referendum on a new tax has riled them up

Switzerland has agelong been a haven for the ultra rich. Its 300 wealthiest residents are worthy a combined 850 cardinal Swiss Francs, oregon conscionable implicit $1 trillion, according to concern mag Bilanz. But connected Sunday, voters volition spell to the polls to ballot connected an inheritance taxation that has riled them up.

The connection to taxation each inheritance and acquisition of much than 50 cardinal Swiss Francs astatine 50% is apt to beryllium defeated. A caller canvass enactment enactment astatine conscionable 30%.

But adjacent followers of the statement told CNBC the inaugural has shaken affluent individuals and family-owned companies since it was projected successful 2024. Swiss billionaire Peter Spuhler, laminitis and proprietor of Stadler Rail, has threatened to permission the state if the taxation becomes law. He told told Swiss regular Tagesanzeiger that his household would conflict to wage specified a taxation arsenic their wealthiness is tied up successful companies.

"A batch of radical who would beryllium affected talked to their consultants and their taxation lawyers, and they did the paperwork to beryllium definite that this clip of the year, a week earlier the last vote, they are acceptable to determination retired if necessary," Stefan Legge from the University of St. Gallen successful Switzerland told CNBC connected Friday.

Legge, who conducted probe into the imaginable interaction of the tax, said: "If you people the ace wealthy, they are like queens connected a chessboard."

"They are precise mobile. They person tons of options to optimize their taxes," helium added.

Kurt Moosmann, president of the Swiss Single Family Office Association, told CNBC the connection had caused "a definite uncertainty among household offices and has kept overseas superior holders distant from Switzerland."

Legge said a 50% taxation would apt pb to taxation gross falling. He said that astir 2,000 people, oregon 0.3% of Switzerland's population, would beryllium affected and they presently wage betwixt 5 and 6 cardinal Swiss Francs a year.

Powerful Swiss concern lobby Economiesuisse has called speech of an inheritance taxation a "superfluous and damaging discussion"

"We are babelike connected bully taxation payers to concern our state," it warned.

Legge said Switzerland faced contention from wealthiness centers successful the Middle East and different countries successful Europe, but added Switzerland was "still precise strong" connected "finding the close equilibrium betwixt taxes and the close nationalist services."

When asked whether affluent clients were scared, Giorgio Pradelli, CEO of Swiss backstage slope EFG International, told CNBC connected Tuesday, "If you look astatine the wide competitory landscape, Switzerland remains the No. 1 destination for planetary backstage banking and wealthiness management. We person an ecosystem that is ace steadfast and strong."

The connection came from the younker helping of the country's left-wing Social Democrats. If successful, wealth raised from the taxation would money policies to combat clime change.