The elections scared the German millionaires. They seek refuge for their wealth in Switzerland
The rise of the left in Europe’s largest economy scared the millionaires, and they began to transfer their assets to Switzerland, as quoted by the Business Standard bankers and lawyers.
The preliminary results of the voting in Germany suggest that the Social Democrats managed to get more votes than the Christian Democrats, and are likely to form a government along with the Greens and others.
Millionaires in Germany fear the return of the wealth tax, as well as an increase in the inheritance tax. “For the super-rich, this is the biggest problem,” says a German government official. “Business families are worried.”
The move shows that the wealthy continue to view Switzerland as an attractive place to store their fortunes, despite the country’s attempts to erase its image as a billionaire haven. No other country has as many foreign assets as Switzerland. The inflow of funds is growing even in 2020.
One of the reasons is the political stability in Switzerland, which shone in the midst of geopolitical tensions and a pandemic.
In the first three months of 2021, deposits by German households and the company grew from nearly $ 5 billion to $ 37.5 billion, according to the International Center for Funds Distribution. This does not include bonds, bills of exchange and other financial instruments.
More recent numbers are not yet known, but insiders believe the influx is not stopping.
“A lot of wealthy people, especially entrepreneurs, are worried that Germany will turn left,” says Florian Dursellen, director of asset management at LGT Switzerland.