In a motion submitted in December 2025, the Green Party calls for the introduction of a national inheritance tax of 5%. In its statement of February 18, 2026, the Federal Council recommends that the motion be rejected.
Content of the Motion
The motion by the Green Party instructs the Federal Council to prepare a legislative proposal for the introduction of a national inheritance tax. It provides for a tax-free allowance of CHF 5 million and a uniform tax rate of 5%. The revenue is intended for the benefit of both the Confederation and the cantons.
The motion also provides for a tax deferral on the transfer of businesses or qualified shareholdings of at least 20 percent to direct descendants, spouses, registered partners or partners in formally documented cohabitation arrangements. The tax would only become due upon a subsequent transfer to third parties or non-privileged individuals.
The grounds for the motion refer to, inter alia, increasing wealth inequality. According to estimates, approximately CHF 100 billion is inherited in Switzerland every year. At the same time, inheritance taxes have been reduced in many cantons over recent decades or fully abolished for direct descendants.
Statement by the Federal Council
The Federal Council recommends that the motion be rejected.
It first points out that the popular initiative “For a Social Climate Policy – Fairly Financed through Taxation” (the so-called Young Socialists’ inheritance tax initiative) was clearly rejected by both the people and the cantons on 30 November 2025, with almost 80% voting against it. This initiative also provided for the introduction of an inheritance and gift tax at the federal level. During the parliamentary debate on that initiative, a minority request for an indirect counter-proposal with similar content to the current motion was also unable to gain majority support. Furthermore, the Federal Constitution currently provides no legal basis for a federal inheritance tax; its introduction would therefore require a constitutional amendment.
In material terms, the Federal Council states that almost all cantons already levy inheritance and gift tax. An additional inheritance tax at federal level would be levied alongside the existing cantonal taxes and would affect the cantonal tax base. Even if the cantons were to share in the revenue, their fiscal autonomy would be reduced.
All cantons also levy a wealth tax, whereas wealth is not taxed in most industrialised countries. Negative effects on Switzerland’s local attractiveness can therefore not be ruled out. An additional tax burden could lead to the relocation abroad of already resident high-net-worth individuals and thereby also reduce tax revenues from income and wealth taxation.
The Federal Council further expresses reservations regarding the desired distributional effect. It is uncertain whether less wealthy individuals would be in a better financial position as a result of the introduction of a federal inheritance tax.
Finally, the Federal Council sees a risk that the preferential treatment of corporate shareholdings could result in suboptimal succession arrangements, as assets might remain tied up in corporate structures for tax reasons.
Overall, the Federal Council unsurprisingly concludes that the disadvantages of a federal inheritance tax outweigh the advantages.
Next Steps
The motion will next be debated in the National Council.