Swiss Voters Reject Inheritance Tax That Billionaires Warned Would Lead to Exodus

"The proposed tax, which came from the country's left-wing Social Democrats party, would have taxed all inheritances and gifts of more than 50 million Swiss Francs, or about $62.3 million, at a rate of 50 percent. Ahead of the vote, Swiss billionaire Peter Spuhler told Swiss newspaper Tagesanzeiger that his family would struggle to pay an inheritance tax as their wealth is tied up in several companies, including train manufacturer Stadler Rail, which he founded. Spuhler threatened to leave the country if the tax passed."

"In a recent CNBC piece, multiple experts and figures in Swiss wealth management warned that other ultra-wealthy people would also leave the country, with Swiss economist Stefan Legge describing such people as "like queens on a chessboard"-in other words, "very mobile." "They have tons of options to optimize their taxes," he said."

"Geneva is home to one of the world's oldest and largest freeports, storage facilities not subject to customs laws. That, combined with the presence of Art Basel and Hauser & Wirth and favorable tax laws for the ultra-wealthy, make it an attractive place for art collectors to reside, or at least park some of their wealth. The country has nearly 10 billionaires per 1 million inhabitants, one of the highest such rates in the world, according to a UBS report. And there are currently over a dozen figures currently listed on ARTnews 's Top 200 Collectors list based in or with residences in Switzerland, including the Niarchos family, Augusto Perfetti, Maja Oeri, and Ryan Zurrer, among others."

Swiss voters rejected a proposed inheritance tax by 78 percent. The proposal from the Social Democrats would have taxed inheritances and gifts over 50 million Swiss Francs at 50 percent. Several wealthy figures warned they would struggle to pay or would leave, with billionaire Peter Spuhler saying his family’s wealth is tied up in companies like Stadler Rail. Experts warned other ultra-wealthy individuals are highly mobile and can optimize taxes. Geneva's freeport, Art Basel, Hauser & Wirth, and favorable tax laws make Switzerland attractive to collectors. Switzerland has one of the highest billionaire-per-capita rates and many top collectors reside there.

Read at ARTnews.com