Undercover Investigation: How Switzerland Courts Millionaire Heirs

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Publication Date: 13.11.2025

Overview

  • Author: Enrico Kampmann, Jan Jirát (Text) and Florian Bachmann (Photos)
  • Source: WOZ (Die Wochenzeitung), Issue No. 46
  • Date: November 13, 2025
  • Estimated Reading Time: 20 minutes

Article Summary

Key Message

An undercover investigation reveals how banks, law firms, and even tax authorities systematically assist wealthy foreigners with tax optimization and exploit lump-sum taxation as a loophole.

Important Facts

  • 500 million euros inheritance results in only 150,000 francs in taxes (0.026 percent) under lump-sum taxation
  • Around 3,900 foreign millionaires use lump-sum taxation in Switzerland
  • At least 50 billionaire families own real estate in Gstaad
  • Estimated 12-19 billion francs in annual tax losses through evasion [⚠️ Still to be verified - SP estimate]
  • 44 percent of total wealth belongs to the richest 1 percent of the population
  • About 100 billion francs are inherited or gifted annually
  • 18 inquiries led to 7 meetings with banks, law firms, and tax authorities

Affected Groups

  • Ultra-wealthy foreigners: Benefit from systematic tax avoidance
  • Middle class: Bears disproportionate tax burden
  • Cantons/municipalities: Compete for wealthy newcomers
  • Service industry: Banks, law firms, wealth managers

Opportunities & Risks

Opportunities:

  • Create transparency about tax avoidance practices
  • Stimulate debate about inheritance tax initiative

Risks:

  • Further erosion of tax fairness
  • Growing wealth inequality
  • Loss of public revenue for education and infrastructure

Recommendations

  • Tightening control of lump-sum taxation
  • Introduction of inheritance tax for large fortunes
  • Improvement of transparency in wealth declarations

Looking to the Future

Short-term (1 year)

Vote on inheritance tax initiative on November 30 will set the course. If passed: tightening of taxation on large inheritances.

Medium-term (5 years)

Possible reform of lump-sum taxation due to political pressure. International coordination on tax avoidance could increase.

Long-term (10-20 years)

Automatic information exchange between countries could close tax loopholes. Wealth inequality remains a societal challenge.

Fact-checking

Well-documented Statements

  • Lump-sum taxation exists for approx. 3,900 people (official statistics)
  • Wealth concentration among the richest 1 percent is measurable
  • Recordings of conversations are available

Unclear or Contradictory Points

  • SP estimates of tax losses (12-19 billion) [⚠️ Still to be verified]
  • Inheritance volume of 100 billion annually based on estimates
  • Individual conversation in Uri may not be representative

Additional Sources & Source List

Additional Reliable Sources

Source List

  1. Original article: WOZ No. 46, 13.11.2025, Link
  2. Fact-checking conducted on: 13.11.2025

Brief Summary

The investigation uncovers a systematic network that helps the ultra-wealthy avoid taxes. Particularly explosive: Even government agencies actively support these practices. This reinforces wealth inequality and undermines tax fairness. An urgently needed societal debate about fair taxation of large fortunes is overdue.

Three Key Questions

  1. Transparency: How can citizens be informed about the actual tax losses through lump-sum taxation when even parliament rejects corresponding reports?

  2. Responsibility: Is it ethically justifiable for tax authorities to actively advise on tax minimization instead of applying laws neutrally?

  3. Justice: What legitimacy does a system have that creates two different tax regimes for different social classes?

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