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Gulf Insider
04-07-2025
- Business
- Gulf Insider
Swiss To Vote On 50% Inheritance Tax That Risks Exodus Of The Super-Rich
In a national referendum set for November, the people of Switzerland will vote on whether the country should impose a 50% inheritance tax on the wealthiest of people — under a regimen so harsh that not even surviving spouses would be spared from the rapacious confiscation. Naturally, this is triggering predictions of a mass-exodus of wealthy people, with opponents pointing to a wave of departures the United Kingdom has witnessed in the wake of its own recent wealth-seizure move. Under the proposal, a 50% federal tax would apply to inheritances and gifts above 50 million francs — about $63 million. The measure isn't supported by the legislative Federal Assembly nor the executive Federal Council. However, under Swiss law, public proposals must be put to a nationwide plebiscite if 100,000 supporting signatures are collected. The signature campaign was led by Switzerland's Young Socialists. Reliably sounding like an elementary school group project, under the Young Socialists proposal, the confiscated wealth would be thrown down a woke rathole, with all proceeds used to combat 'climate change.' While Swiss inheritance taxes at the cantonal level provide an inheritance tax exemption for transfers to spouses and direct descendants, the socialists' proposal for the 50% federal tax would not. Peter Spuhler, 66-year-old owner of steel giant Stadler Rail, decried the proposal as a pending 'disaster for Switzerland,' estimating the tax would seize upwards of 2 billion Swiss francs A popular vote for the new inheritance tax on Nov 30 could hammer Switzerland's long-held status as a premier tax haven for the world's wealthiest people. A consortium of opponents that includes centrists and conservatives is already working to dissuade Swiss voters from indulging any impulses to soak the rich. 'The brutal 50% inheritance tax threatens the existence of family businesses and causes high economic costs. It's a setback for everyone,' said the organization in a statement. In April, a new tax rule took effect in the UK, imposing a 40% inheritance tax on the global assets of 'non-doms,' a term that refers to residents of the UK who are considered under British law to have their permanent home — their domicile — in another country. Chancellor Rachel Reeves is already considering avenues by which the change can be undone, after it promptly triggered an exodus of wealthy people eyeing alternatives like the United Arab Emirates, Italy and, yes, Switzerland. Among those who are either considering departure from the UK or have already done so: Egypt's richest man, Nassef Sawiris, and Indian steel tycoon Lakshmi Mittal, who has lived in the UK for 30 years. Georgia Fotiou, a lawyer advising private clients at Zurich-based Staiger Law, says the proposal is already harming Switzerland's ability to benefit from the UK's own inheritance-tax folly. 'In terms of the chance for Switzerland to attract people leaving the UK, the damage has been done. The timing was terrible,' she told the Financial Times . 'It hasn't stopped everyone from coming but more have chosen Italy, Greece, the United Arab Emirates and elsewhere instead.' To become law, the proposal must clear two hurdles, garnering not only a majority of support nationwide, but also in a majority of Switzerland's 26 cantons. Despite the substantial likelihood of failure, the proposal already has some wealthy people on the move, say Swiss tax advisors and wealth managers. They caution that even a defeat — if it's by a relatively modest margin — could leave mega-wealthy individuals hesitant about the country. As Frédéric Rochat, managing partner of Geneva-based Lombard Odier, told the Times , 'It needs to be voted down with such an overwhelming majority [that this possibility can] be put to bed for 20 years.'
Forbes
30-06-2025
- Business
- Forbes
Swiss Government Delays Sustainability Reporting Revision While EU Debates Reductions
Bundeshaus Facade with Swiss Flag in Bern. On June 25, the Swiss Federal Council voted to pause revision of corporate climate disclosures requirements. The revision was intended as a comparative study to align Swiss law with international sustainability reporting standards. However, turmoil in the European Union over the future of sustainability reporting directives caused the Federal Council to pause the project. Although not a member of the EU, Switzerland clearly intends to follow their lead on the direction the country should take. Published in November 2022, the Ordinance on Climate Disclosures establishing a national reporting requirement for 'public companies, banks and insurance companies with 500 or more employees and at least CHF 20 million in total assets or more than CHF 40 million in turnover.' The Ordinance went into force on January 1, 2024. On December 6, 2024, the Federal Council 'proposed that the ordinance be aligned with the latest international developments on standardised reporting, and that minimum requirements on roadmaps for financial sector companies be defined.' The Federal Council initiated a consultation period from December to March, allowing for interested parties to provide feedback on proposed changes. Changes were anticipated to be announced in mid-2025. However, the development has been paused while the EU debates the future of sustainability reporting. The EU was an early adopted of sustainability disclosures, requiring nearly all companies with over 250 employees to file annual reports in a phased in approach. However, the 2024 EU Parliament elections shifted the composure of the body to the right and brought with it an anti-green sentiment. In early 2025, the European Commission proposed a series of directives to significantly reduce the impact of the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive. While the proposals included a variety of changes, most focus has been on the thresholds used to determine if a company is required to report. Under the original CSRD, companies with two of the following three were required to report: 250 employees, €50 million in annual net turnover, or €25 million in assets. The Commission proposal raises the threshold to 1000 employees, plus one of the other two options. The Council proposal raises the threshold to 1000 employees, plus €450 million in annual turnover. The Parliament is still in the early stages of debating their position, but an initial draft proposed by the project rapporteur raises the threshold to 3000 employees, plus €450 million in annual turnover. The Parliament is expected to adopt their final proposal on October 13. The three EU bodies will then enter into negotiations, with an anticipated completion by December or January 2026. These developments in the EU impacted the consultation phase of the Swiss Government. The release noted that proposals to align Swiss requirements with international developments 'were largely welcomed during the consultation. However, there were broad calls for the implementation of the ordinance to be paused until the Federal Council had approved the ongoing revision of the overarching legislation on sustainability reporting in the Code of Obligations.' As a result, the Federal Council has delayed the project until the EU announces their changes to sustainability reporting in early 2026. 'For this reason, the Federal Council has decided to also pause the project on companies' climate disclosures until it has approved the bill to amend the Code of Obligations, but at the latest by 1 January 2027.'
Straits Times
20-06-2025
- Business
- Straits Times
Switzerland lifts economic sanctions on Syria
ZURICH - Switzerland said on Friday it will lift a raft of economic sanctions imposed on Syria, including the Middle Eastern country's central bank. After the toppling of former Syrian president Bashar al-Assad in December 2024, targeted sanctions against individuals and entities linked to the former government will still remain in place, Switzerland's governing Federal Council said. "The aim of this decision is to promote the country's economic recovery and an inclusive and peaceful political transition," the council said in a statement. After an initial easing of sanctions in March, Switzerland is now lifting restrictions on the provision of certain financial services, trade in precious metals and the export of luxury goods, the government said. Some 24 entities including the central bank of Syria have also been removed from the sanctions list, it added. The announcement follows the EU's decision to lift its economic sanctions on Syria at the end of May after a similar move by the U.S. Treasury Department in the same month. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Reuters
20-06-2025
- Business
- Reuters
Switzerland lifts economic sanctions on Syria
ZURICH, June 20 (Reuters) - Switzerland said on Friday it will lift a raft of economic sanctions imposed on Syria, including the Middle Eastern country's central bank. After the toppling of former Syrian president Bashar al-Assad in December 2024, targeted sanctions against individuals and entities linked to the former government will still remain in place, Switzerland's governing Federal Council said. "The aim of this decision is to promote the country's economic recovery and an inclusive and peaceful political transition," the council said in a statement. After an initial easing of sanctions in March, Switzerland is now lifting restrictions on the provision of certain financial services, trade in precious metals and the export of luxury goods, the government said. Some 24 entities including the central bank of Syria have also been removed from the sanctions list, it added. The announcement follows the EU's decision to lift its economic sanctions on Syria at the end of May after a similar move by the U.S. Treasury Department in the same month.
Reuters
13-06-2025
- Business
- Reuters
Swiss government approves package of measures for closer EU ties
ZURICH, June 13 (Reuters) - The Swiss cabinet on Friday said it has approved the agreements struck with the European Union last year to regulate their relationship and has now launched a domestic consultation process. The uncertain global geopolitical situation made it a "strategic necessity" for Switzerland to maintain stable and predictable relations with the European Union, its biggest trading partner, the government said. "After Switzerland brought the negotiations with the EU to a successful close in December 2024, the Federal Council finalised the implementing legislation and accompanying measures," the cabinet said. Issues such as wage protections, immigration and electricity as well as the type of referendum to be held on accepting the proposals have all been agreed over the last five months. The consultation process will last until October 31, 2025, the Swiss cabinet said. Parliament will debate the package before a referendum is held, likely in 2028. "With this package, the cabinet is aiming for customised sectoral participation in the EU single market as well as cooperation in selected areas," the cabinet said in a statement. "Given the current global unrest, maintaining good relations with neighbouring countries is key," it added.
