The founder of Groupe Bernard Nicod speaks out in the columns of 24 heures about Vaud's tax problem and its repercussions on the local economy.
In a column published on March 5, 2025 in the daily 24 heures, Bernard Nicod, founder and head of our real estate group, sounds the alarm about the exodus of major taxpayers from the canton of Vaud and its consequences for the local economy. This analysis comes at a crucial time, when the debate on taxation is intensifying in our region.
An alarming report on the tax exodus
Bernard Nicod highlights a worrying phenomenon: almost 60 major taxpayers have left the canton of Vaud in the last two years. This tax haemorrhage is mainly due to the progressive increase in taxation and the weakening of the tax shield, which was supposed to protect taxpayers from confiscatory taxation.
"The tax shield, initially designed to limit the sum of cantonal and communal taxes on income and wealth to a certain percentage of net income, no longer plays its role", Bernard Nicod points out. In his view, the legislative changes of 2021 have created an aberrant situation where some taxpayers find themselves with a tax burden that exceeds their income, naturally driving the wealthiest to seek refuge elsewhere.
A revealing survey
To back up his point, Bernard Nicod shares the results of a personal approach: having contacted 232 large Vaud taxpayers, 94 of them replied to him, confirming the general feeling that "too much is too much". Despite attempts at dialogue with the cantonal authorities, no concrete solution has yet been found.
Comparison with other cantons
In his analysis, our executive compares the situation in Vaud with that in other Swiss cantons. In particular, he mentions Geneva's recent tax reform passed in November 2024, which aims to restore purchasing power to the population, particularly the middle class, with an income tax reduction of up to 11.4% for modest incomes.
He also cites the example of Zurich, where "an attractive tax system, which remains competitive yet fair, has made it possible to attract and retain companies and large fortunes", thus generating "solid tax revenues and an economy that's firing on all cylinders".
The 12% initiative and its stakes
Bernard Nicod discusses the so-called 12% initiative, launched by Vaud employers' circles, which calls for a linear 12% cut in cantonal income and wealth tax for all taxpayers. While recognizing the importance of this proposal for lightening the tax burden and boosting the canton's attractiveness, he suggests that a more targeted approach, along the lines of that adopted by Geneva, might be more balanced.
"Rather than opting for a uniform cut, the Geneva example shows that adapting tax scales makes it possible to better target the middle class, which does not benefit from subsidies and bears a significant share of the tax burden," he explains.
Consequences for the local economy
The head of Groupe Bernard Nicod warns of the consequences of this tax exodus: when big taxpayers leave the canton, the tax burden inevitably shifts to the middle class and local businesses. "If we continue in this direction, we'll soon have a Northern European tax system, with infrastructures that don't keep up. It's an absurdity", he asserts.
A personal commitment
Despite this worrying observation, Bernard Nicod reaffirms his attachment to the canton: "I'm not leaving. It's not on my mind. I'm all for paying taxes, even if I think they're unfairly distributed. I've built my career here, I've invested my time, my energy, my life." Nevertheless, he questions the willingness of future generations of entrepreneurs and major taxpayers to make the same choice in the face of growing tax pressure.
A balanced vision for the future
Bernard Nicod does not advocate "a Switzerland transformed into a tax haven" but calls for "a minimum of common sense" in the tax approach. His vision hinges on striking a balance between tax relief and maintaining the resources necessary for the proper functioning of public services.
As a major player in the Vaud real estate market, the Bernard Nicod Group remains attentive to these tax issues, which have a direct impact on the local real estate market and the economy as a whole. Our commitment to the harmonious development of the canton requires a fair and attractive tax system, a guarantee of shared prosperity.
Find Bernard Nicod's column in full in the March 5, 2025 edition of the 24heures newspaper, Real Estate section.