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Inheritance tax for Swiss nationals outside Switzerland
Have you ever wondered what principles govern inheritance tax if you are a Swiss national resident outside Switzerland at the time of your death?
Laetitia Staehli, Senior Wealth Planner at Lombard Odier in Switzerland, presents an explainer on the basic principles involved. The issue is certainly complex, but it is nonetheless crucial to consider. A lack of foresight on inheritance tax can have serious repercussions, both on a personal and a financial level.
What inheritance tax is payable on the death of a Swiss national who is resident outside Switzerland?
Inheritance tax is normally charged abroad if you are resident abroad at the time of death. However, there are situations where inheritance tax may be charged in Switzerland.
In what cases might inheritance tax be payable in Switzerland?
For those living abroad, inheritance tax may be charged in Switzerland in the following cases:
- You hold assets in Switzerland
If you live abroad but own a property in Switzerland at the time of your death, inheritance tax will be charged in the canton where the property is located.
In addition, if you own furniture, collections or artworks located in the canton of Geneva, the canton will charge inheritance tax on those assets even if you are resident outside Switzerland at the time of your death.
- You open estate proceedings in Switzerland
If you are a Swiss national but the authorities of the country outside Switzerland where you were resident are not involved in settling the estate, the estate proceedings may be opened in Switzerland.
Estate proceedings can also be opened in Switzerland if you are a Swiss national and you specify in a will or inheritance agreement that the Swiss authorities shall have jurisdiction and/or you opt for Swiss law to apply.
Choosing which national law will apply is a tool frequently used in international private law for inheritance purposes. It allows you to submit your estate to the law of your own country – Swiss law in this instance – even if you are resident abroad.
If this results in your estate proceedings being opened in Switzerland, they would take place in your canton of origin. In certain cases, this can also result in your estate being subject to the inheritance tax of your canton of origin.
Read also: Estate planning: why make a will? | Lombard Odier
Lombard Odier is your preferred partner to help you preserve your assets for the long term. Our Wealth Planning teams in Switzerland and abroad are available to help you consider these issues, and can work alongside your usual advisors to put the best legal and tax solutions in place.
Need to consider how inheritance tax applies when a Swiss resident dies? Find out more from our article and video on the subject.
Important information
This document is issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This document was not prepared by the Financial Research Department of Lombard Odier.
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