German millionaires rush assets to Switzerland fearing a Left turn
If the Centre-Left Social Democrats (SPD), hard-Left Linke and environmentalist Greens come to power, the reintroduction of a wealth tax and tightening of inheritance tax could be on political agenda
 "Angela Merkel")
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German Chancellor Angela Merkel’s shots of feeding a group of rainbow lorikeets — a species of parrot native to Australia — at a bird park have gone viral. (Picture: Twitter)
A potential lurch to the Left in Germany's election on Sunday is scaring millionaires into moving assets into Switzerland, bankers and tax lawyers say.
If the Centre-Left Social Democrats (SPD), hard-Left Linke and environmentalist Greens come to power, the reintroduction of a wealth tax and a tightening of inheritance tax could be on the political agenda. “For the super-rich, this is red hot,” said a German-based tax lawyer with extensive Swiss operations. “Entrepreneurial families are highly alarmed.”
The move shows how many rich people still see Switzerland as an attractive place to park wealth, despite its efforts to abolish its image as a billionaires’ safe haven. No country has more offshore assets than Switzerland and inflows accelerated in 2020, to the benefit of big banks such as UBS, Credit Suisse and Julius Baer.
Geopolitical tensions and fears of the Covid-19 pandemic’s economic fallout made Switzerland’s political stability attractive. The Bank for International Settlements data shows deposits of German households and companies at banks in Switzerland climbed almost $5 billion to $37.5 billion in the first quarter of 2021, and this does not include shares, bonds or financial products.
If the Centre-Left Social Democrats (SPD), hard-Left Linke and environmentalist Greens come to power, the reintroduction of a wealth tax and a tightening of inheritance tax could be on the political agenda. “For the super-rich, this is red hot,” said a German-based tax lawyer with extensive Swiss operations. “Entrepreneurial families are highly alarmed.”
The move shows how many rich people still see Switzerland as an attractive place to park wealth, despite its efforts to abolish its image as a billionaires’ safe haven. No country has more offshore assets than Switzerland and inflows accelerated in 2020, to the benefit of big banks such as UBS, Credit Suisse and Julius Baer.
Geopolitical tensions and fears of the Covid-19 pandemic’s economic fallout made Switzerland’s political stability attractive. The Bank for International Settlements data shows deposits of German households and companies at banks in Switzerland climbed almost $5 billion to $37.5 billion in the first quarter of 2021, and this does not include shares, bonds or financial products.
Topics : Germany Angela Merkel Switzerland Inheritance tax