Taxation, reforms and successions in Switzerland in 2025

The year 2025 could mark an important turning point in terms of the taxation of natural persons in Switzerland. Meanwhile, Cantonal reforms, federal debates, popular initiatives: overview already in force, discussion projects and the prospects to be monitored.

What changed in January 2025: tax cuts in French -speaking Switzerland – Taxation, reforms successions switzerland 2025 – Taxation, reforms successions switzerland 2025 new

Since January 1. Furthermore, 2025, several French -speaking cantons have revised their taxation relating to natural persons. In addition, In the cantons of Geneva and Vaud, income tax declines have been adopted. Nevertheless. Nevertheless, In Geneva, the reform is part of an effort of tax competitiveness aimed at avoiding the departure of wealthy taxpayers. In addition, The canton of Vaud also adjusted its scales down, especially taxation, reforms successions switzerland 2025 new for the middle class.

In addition. Similarly. However, the canton of Vaud introduced alleys on the inheritance and donation in direct line, making the transmissions of family heritage taxation, reforms successions switzerland 2025 less expensive. Nevertheless, This reform, welcomed by certain notaries and taxists, aims to facilitate intergenerational transmissions.

Reforms which will be submitted to the people in the coming months: the end of the rental value. However. the great successions – Taxation, reforms successions switzerland 2025 – Taxation, reforms successions switzerland 2025 new

Deletion of rental value

The debate on the abolition of the rental value, a mechanism which fictitiously imposes an income on the owners of their housing, has been relaunched for several years. Furthermore, In 2024. In addition. the Federal Parliament greatly amended the initial project, so that the final text no longer presents the taxation, reforms successions switzerland 2025 new same benefits expected.

Indeed. the abolition of the rental value of the main. secondary residences would also result in the disappearance of the deduction of maintenance costs, investments linked to energy savings (at the federal level) and the drastic drop in the deductibility of taxation, reforms successions switzerland 2025 passive interest. Finally, to partially compensate for the loss of revenue, a new tax on second homes would be implemented.

The entry into force of this reform, conditioned on a popular vote, is only possible from 2027.

Initiative on major successions

Launched by young socialists. this initiative proposes the introduction of a federal tax on successions and donations. The tax would be collected on the amounts exceeding a franchise of 50 million. In the event of acceptance. the initiative would come into force the day after the vote. with the effect that the tax would be due from that date.

The taxation, reforms successions switzerland 2025 new Federal Council rejects the initiative because it is convinced that it would make Switzerland less attractive for wealthy people. It would also pose significant difficulties for entrepreneurs, no specific measure being provided on the working tool. Likewise, most parties call for voting against this initiative. Consensus is rather expecting taxation, reforms successions switzerland 2025 a rejection of this initiative, considered extreme.

To be monitored: taxation of capital withdrawals of provident

At the beginning of the year. the Federal Council announced maintain its desire to increase the taxation of capital benefits of the 2nd. 3rd pillar A, at the federal level. To do this, he decided to propose the introduction of a new special progressive scale. The objective of this new scale is to continue to impose low capital withdrawals at moderate rates. On the other hand, the larger capital withdrawals would be imposed heavily than at present. To date. capital taxation, reforms successions switzerland 2025 new benefits of the 2nd. 3rd pillar A are imposed separately at the reduced rate of 1/5th (maximum rate of 2.3% on direct federal tax). In the event of acceptance, the maximum tax burden could increase to approximately 10% at the federal level.

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The consultation procedure is completed; Many oppositions have come forward. The ball is now in the camp of the Federal Council which could transmit its message to the rooms. in the coming months. If the calendar is respected, they will be able to examine this project during the winter session 2025/2026.

Conclusion

Between local tax cuts. current structural reforms and popular initiatives with high change potential, Swiss taxation experienced in 2025 intense dynamics. While some measures are already in place. others will still have to taxation, reforms successions switzerland 2025 new cross parliamentary. democratic stages, sometimes with very contrasting effects depending on the cantons and personal situations. For taxpayers, anticipation and personalized tax council are more than ever essential.

At Lombard Odier, we understand the importance of navigating in a constantly evolving tax environment. Whether you are a family wishing to optimize the transmission of your assets. taxation, reforms successions switzerland 2025 an entrepreneur faced with complex tax reforms, our experts are at your disposal to support you. Together, we are developing personalized solutions to meet your specific needs and anticipate the challenges of tomorrow.