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The departure to Italy of former executives at Pictet, one of Switzerland’s oldest private banks, has ignited a fierce national debate over tax, competitiveness and fairness.
Renaud de Planta, a board director at Pictet, and Bertrand Demole, another former partner at the bank, both left Geneva for Italy this year, according to people familiar with the situation.
The moves come as several European countries overhaul their tax regimes amid competition to attract high-net-worth individuals and political pressure to ensure the wealthiest bear a fair tax burden.
The relocations also come ahead of a Swiss referendum in November on whether to impose a 50 per cent inheritance tax on assets above SFr50mn — a proposal by leftwing politicians that has pushed some wealthy individuals to move abroad.
De Planta, who until 2024 was one of a small group of managing partners who ran Pictet, remains on the company’s board and is also on the Swiss National Bank’s supervisory council.
Demole, a descendant of one of Pictet’s founding families, stepped down as a managing partner in 2023 but remains on the board of one of its entities. One of the people added his move was not solely for tax reasons.
De Planta’s move, first reported in Swiss media, has drawn particular criticism given his ties to prominent Swiss financial institutions. Mauro Poggia, a Geneva lawmaker, said de Planta had left “a city that has contributed to his fortune”.
But others have criticised Geneva’s progressive tax regime, arguing that it deters the super-wealthy and puts a strain on upper and middle income earners.
Geneva’s taxes on the wealthy are much higher than in rival financial hubs Zurich and Zug, with the top 1 per cent of taxpayers paying more than two-thirds of the Swiss canton’s wealth tax and over a third of the income tax.
Another point of contention is that some foreigners in Switzerland pay less tax than citizens. “I pay more tax than many of my foreign clients based in cantons with lump-sum arrangements like [the Swiss town] Verbier or Milan,” said one wealth manager in Geneva. “Planta’s move may be morally questionable, but unless we have reform of our regular tax system others will follow.”
Frédéric Rochat, managing partner at Lombard Odier, said last month that de Planta’s move served as a warning. He cited the tax burden on households earning SFr300,000, which he said can exceed 60 per cent.
Rochat warned that jurisdictions such as Milan, Lisbon and Dubai are actively courting Swiss residents. De Planta’s departure could prove useful because it had “put Geneva’s fiscal competitiveness back on the table” as a topic for discussion, he said.
Italy allows new residents to pay a flat tax of €200,000 annually on their foreign income, an offer that has attracted a number of wealthy Swiss to move across the border in pursuit of savings as well as drawing financiers from other countries. The levy was doubled last year.
Other countries have also changed their tax regimes for wealthy, internationally mobile individuals. The UK has abolished its “non-dom” status for people whose permanent residence is overseas, and has brought global assets into scope for inheritance tax, while Portugal and Greece have tightened rules for expats.
Geneva finance minister Nathalie Fontanet said relocations by wealthy individuals were not unusual but acknowledged that taxation affects residency decisions, especially among the wealthy. Geneva had implemented modest tax reductions but still relied heavily on top taxpayers, she said.
Poggia, who sits on the Geneva Council of States, said taxation was like a rubber band: “It can stretch a long way — but when it snaps, those who leave are hard to replace.”
De Planta and Demole declined to comment. A person close to de Planta said he had personal ties to Italy, having spent part of his childhood there, while a person close to Demole said he has historic family connections to Italy. Both men continue to pay far more tax in Switzerland than in Italy, the people added.
Pictet said: “We never comment on the activities or plans of any former partners.”
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