Switzerland’s firm rejection of a proposed high inheritance tax has strengthened its standing among globally mobile families and may influence where the next generation of family offices take root.
Swiss voters delivered a clear verdict in one of the most closely watched wealth policy debates of the year. More than 80 percent opposed the introduction of a federal inheritance and gift tax of 50 percent on estates above 50 million Swiss francs. With turnout at roughly 42 percent, the result reinforced Switzerland’s preference for a decentralised and comparatively modest tax framework. The proposal, advanced by the Young Socialists, suggested that revenue could support climate initiatives. It had already triggered concern across the business community and among wealthy residents.
A retroactive element within the original proposal heightened unease. Although this clause was later softened, the possibility of retroactive taxation was viewed as particularly destabilising for families with cross-border structures or illiquid operating businesses. Many feared that even a narrow defeat might open the door to similar initiatives in future cycles. The scale of the rejection now signals a strong public commitment to continuity.
For family offices, this result is not only about Switzerland. A jurisdiction is more than a venue for administration. It is the central base around which investments, governance, philanthropy, reporting, and succession planning are structured. Choosing a location requires years of preparation, significant operational investment, and long-term commitments to legal, tax, and advisory ecosystems. Predictability becomes a core asset.
A Shifting Policy Landscape
The vote comes at a time when approaches to wealth taxation are diverging across major economies. Some countries have tightened rules for affluent residents. The United Kingdom’s abolition of non-domiciled status has reshaped long-standing planning strategies. Italy, which has attracted international families through its flat tax regime, has signalled planned increases from next year. France has recently dismissed several new wealth tax proposals, reflecting uncertainty about the political feasibility of more aggressive taxation.
Other centres are actively competing. Hong Kong has set a public target of attracting 200 family offices by 2025, supported by incentives. Singapore continues to strengthen its regulatory environment. The UAE, particularly Dubai and Abu Dhabi, remains one of the fastest-growing destinations for family office formation.
Despite the complexity of relocating, wealth mobility is rising. Many first-generation entrepreneurs and internationally mobile families now view jurisdictions more like service providers. Capital, structures, and reporting functions can be distributed across several locations. Moves that once took decades now happen within months if policy changes threaten long-term plans.
Recent migration flows illustrate this shift. A number of wealthy residents left Norway following adjustments to its wealth tax regime. Similar movements have been reported in the United Kingdom after the non-dom reforms, and in parts of Europe where governments have experimented with new tax approaches.
Why Switzerland’s Signal Matters
This referendum result addresses a key concern: stability. Although the proposal originated from a political group rather than government, the margin of defeat sends a clear message. Swiss voters prefer predictable taxation over abrupt reform. This offers reassurance to families and advisors who had begun to assess alternative jurisdictions earlier in the year.
The timing is significant. The coming years are expected to see substantial growth in new family offices as wealth rises among technology founders, private market entrepreneurs, and families entering new asset classes. Many existing offices are also entering succession cycles that often prompt jurisdictional reviews. Advisors frequently estimate that thousands of new family offices may be established globally, and countries are competing for them with increasing intensity.
Families evaluating where to build these structures focus on several factors. These include clarity on taxation and reporting, the strength of cross-border rules, the quality of local advisors and service providers, and lifestyle considerations such as safety and education. Above all, they want confidence that policy will not shift suddenly.
Stability as a Strategic Advantage
In this context, Switzerland’s vote reinforces its reputation as one of the most stable jurisdictions for long-term wealth. Rather than indicating a willingness to explore large-scale reforms, voters reaffirmed a preference for continuity. For countries hoping to attract new family offices, the result is a reminder that incentives alone are not enough. Predictability matters as much as tax rates.
As competition intensifies, jurisdictions are becoming part of a family’s strategic architecture. Stability and clarity now carry similar weight to financial incentives. Switzerland’s decision brings that point into sharp focus at a time when many other countries are still navigating the balance between competitiveness, fiscal needs, and public sentiment.
For the next wave of globally mobile families considering where to establish their base, that clarity is likely to be a decisive factor.
