Elections in Germany: The victory of the left in the parliamentary elections prompted wealthy Germans to move their money to Switzerland, according to Reuters, citing information obtained from bankers and lawyers.
The Social Democratic Party, which came first in the elections in Germany, plans to introduce a wealth tax and increase the inheritance tax. The Green Party, a potential coalition partner, also wants to tax Germany’s richest people more.
Both parties want to increase the income tax rate.
According to data from the Bank for International Settlements, deposits of German households and companies in Switzerland increased by about $5 billion to $37.5 billion in the first quarter of 2021 and does not include stocks, bonds or other financial products.
There is no recent data, but Reuters notes that according to its sources, the outflow of money from Germany has accelerated.
“A lot of wealthy people, especially entrepreneurs, are afraid of the left-leaning in Germany, even regardless of the election results,” Florian Dorselen, head of the European market at wealth management firm LGT Switzerland told Reuters.
The Social Democratic Party won the parliamentary elections in Germany, with 25.7 percent of the vote, narrowly ahead of the conservatives, according to preliminary official results announced by the Federal Electoral Commission on Monday, September 27.
The conservative camp (Merkel’s party) received 24.1 percent of the vote, the worst result in its history. The Green Party came third with 14.8 percent, followed by the Free Democratic Party with 11.5 percent.