For Switzerland, luring wealthy foreigners is as proud a part of its cultural heritage as Alpine skiing, masterfully made timepieces, and Toblerone.
Driving the news: Switzerland kept its status as a haven for the ultra-rich after voters emphatically rejected a proposal to boost the federal inheritance and gift tax by 50%. The measure, defeated by a margin of ~79%, targeted estates and transfers over £47 million.
Big picture: The Swiss referendum is part of a wider debate countries are having about tax breaks for the wealthy as income inequality continues to climb. The shifting sands of tax reform have led to record millionaire migration numbers — according to Henley’s annual report, 142,000 millionaires globally were projected to relocate in 2025, and 162,000 in 2026.
This year, the U.K. eliminated a tax regime that benefited rich residents, while France is mulling a tax on the wealthy’s “unproductive” assets, like jewellery and luxury cars.
Why it matters: Welcoming the ultra-rich is a double-edged sword. On the one hand, they tend to buy lots of stuff and drive up economic activity. On the other hand, the cost of living tends to go up wherever they roam. And as for taxes, they can be a strong part of the tax base… when they actually pay up.—QH