Go Back   English Forum Switzerland > Help & tips > Finance/banking/taxation  
Reply
 
Thread Tools Display Modes
  #1  
Old 02.08.2019, 13:02
oferet's Avatar
Member
 
Join Date: Jun 2008
Location: Basel
Posts: 182
Groaned at 3 Times in 3 Posts
Thanked 119 Times in 61 Posts
oferet is considered knowledgeableoferet is considered knowledgeableoferet is considered knowledgeable
Inheritance Tax question [BL]

Hi All,

I've got a C permit (non-EU, non-US).
What happens if I receive a significant inheritance from abroad (from a first degree relative).
The amount is not supposed to be in the multi-billionaire area- at most 1,000,000 CHF.

Is there a tax liability in Switzerland (specifically in canton Basel Land)?
Please notice that I am not discussing the tax liability abroad. I've got other resources to deal with that question.

Thanks in advance
Reply With Quote
  #2  
Old 02.08.2019, 15:08
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,921
Groaned at 285 Times in 234 Posts
Thanked 15,385 Times in 8,557 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
Hi All,

I've got a C permit (non-EU, non-US).
What happens if I receive a significant inheritance from abroad (from a first degree relative).
The amount is not supposed to be in the multi-billionaire area- at most 1,000,000 CHF.

Is there a tax liability in Switzerland (specifically in canton Basel Land)?
Please notice that I am not discussing the tax liability abroad. I've got other resources to deal with that question.

Thanks in advance
Unless the person leaving you the money was Swiss I don't believe so.
Reply With Quote
The following 3 users would like to thank fatmanfilms for this useful post:
  #3  
Old 02.08.2019, 15:19
Forum Veteran
 
Join Date: Jan 2016
Location: Lugano
Posts: 525
Groaned at 11 Times in 9 Posts
Thanked 565 Times in 270 Posts
LuganoPirate has an excellent reputationLuganoPirate has an excellent reputationLuganoPirate has an excellent reputationLuganoPirate has an excellent reputation
Re: Inheritance Tax question [BL]

No, but you'll have to declare it in your next tax return for wealth tax calculations.
Reply With Quote
The following 4 users would like to thank LuganoPirate for this useful post:
  #4  
Old 02.08.2019, 16:22
Diane D's Avatar
Newbie 1st class
 
Join Date: Jan 2019
Location: Schaffhausen
Posts: 23
Groaned at 0 Times in 0 Posts
Thanked 11 Times in 9 Posts
Diane D has no particular reputation at present
Re: Inheritance Tax question [BL]

Lugano pirate is right in most Kanton there is no inheritance tax, but as you then own that money you must declare it. Dont try to hide it, BTW if you looking at that amount I suggest a good tax lawyer. & an inheritance lawyer if anyone contends the will. Good luck
Reply With Quote
This user would like to thank Diane D for this useful post:
  #5  
Old 02.08.2019, 16:47
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 26,754
Groaned at 1,671 Times in 1,280 Posts
Thanked 31,042 Times in 14,831 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
No, but you'll have to declare it in your next tax return for wealth tax calculations.
Unless you spend it all in the meantime.

Tom
Reply With Quote
The following 5 users would like to thank st2lemans for this useful post:
  #6  
Old 03.08.2019, 10:03
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 10,925
Groaned at 166 Times in 144 Posts
Thanked 15,502 Times in 6,272 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Inheritance Tax question [BL]

There is no inheritance tax on legacies from direct relatives in BL. When I received a significant inheritance, I just declared it on my tax return. It's about accounting where your sudden increase in wealth has come from, before they start asking questions.

Or you could do what a colleague of mine did. He opened a Swissquote account, put the money in there and used it to build a share portfolio - but neglected to tell the tax authorities about the account... :-O
Reply With Quote
This user would like to thank NotAllThere for this useful post:
  #7  
Old 03.08.2019, 10:42
Mrs. Doolittle's Avatar
Forum Legend
 
Join Date: May 2007
Location: Aargau
Posts: 5,926
Groaned at 119 Times in 86 Posts
Thanked 6,909 Times in 3,268 Posts
Mrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond repute
Re: Inheritance Tax question [BL]

I am sorry for your loss.

You must declare the full inherited amount as assets in the calendar year in which the deceased passed away even if the funds were not yet distributed. If the inheritance includes fixed assets such as property, you need a valuation for that as well.

Chances are the documentation you will receive is in English, which is not the problem, except you will need to enter it into the tax form where the wording might be a bit tricky. If you are not the sole inheritor, you need to show the full amount and declare your share.
Backup documentation is important.

According the Basel Kantonalbank, in Basel Land you pay tax on the inheritance from a sibling (but not from parents). For Baselstadt the situation is the same. Thought this is worth noting as the OP said "first degree relative" but was not specific.
__________________

Reply With Quote
The following 5 users would like to thank Mrs. Doolittle for this useful post:
  #8  
Old 03.08.2019, 12:06
Forum Legend
 
Join Date: Mar 2016
Location: Leimbach, Zürich
Posts: 5,548
Groaned at 317 Times in 252 Posts
Thanked 6,092 Times in 3,075 Posts
EdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
According the Basel Kantonalbank, in Basel Land you pay tax on the inheritance from a sibling (but not from parents). For Baselstadt the situation is the same. Thought this is worth noting as the OP said "first degree relative" but was not specific.
Fully correct, however only relevant if the tax is handled and paid under Swiss law which is not the case when a foreigner dies outside Switzerland.
Reply With Quote
The following 5 users would like to thank EdwinNL for this useful post:
  #9  
Old 03.08.2019, 14:54
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 10,925
Groaned at 166 Times in 144 Posts
Thanked 15,502 Times in 6,272 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: Inheritance Tax question [BL]

Swiss-wide inheritance tax, valid as at 1.2019, here. (pdf)
Reply With Quote
The following 4 users would like to thank NotAllThere for this useful post:
  #10  
Old 05.08.2019, 10:01
Forum Veteran
 
Join Date: Jan 2019
Location: close to the frontier
Posts: 773
Groaned at 89 Times in 58 Posts
Thanked 377 Times in 241 Posts
Clocker is considered knowledgeableClocker is considered knowledgeableClocker is considered knowledgeable
Re: Inheritance Tax question [BL]

Quote:
View Post
Unless you spend it all in the meantime.
To be precise it would have to be spent by the end of the year it is received in. If it is still in an account under your name on 31.12. of the year in question, it would have to be declared in that year's tax return when completing this the following year.
A lot of people move money around in December for a reason.
Reply With Quote
The following 2 users would like to thank Clocker for this useful post:
  #11  
Old 05.08.2019, 10:07
oferet's Avatar
Member
 
Join Date: Jun 2008
Location: Basel
Posts: 182
Groaned at 3 Times in 3 Posts
Thanked 119 Times in 61 Posts
oferet is considered knowledgeableoferet is considered knowledgeableoferet is considered knowledgeable
Re: Inheritance Tax question [BL]

Quote:
View Post
I am sorry for your loss.
Thanks for that, but there was no loss.
I was only asking in order to be prepared, responding to my parents' request.
Reply With Quote
The following 4 users would like to thank oferet for this useful post:
  #12  
Old 05.08.2019, 10:17
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,269
Groaned at 78 Times in 69 Posts
Thanked 15,526 Times in 6,895 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
Swiss-wide inheritance tax, valid as at 1.2019, here. (pdf)
Most important part regarding this thread:

When assessing liability for inheritance tax, the last domicile of the testator generally applies. In the case of gifts and advancements, the domicile of the donor applies (except in the event of land ownership).

Quote:
View Post
Fully correct, however only relevant if the tax is handled and paid under Swiss law which is not the case when a foreigner dies outside Switzerland.
To be exact: The nationality of the deceased is of no relevance. Where they died is also not of relevance. Important is where they have been a resident. There will be no Swiss (actually Canton) inheritance tax if a Swiss which has his domicile abroad dies while visiting Switzerland. On the other hand, if a Swiss domiciled foreigner dies while being outside of Switzerland, Swiss (actually Canton) inheritance tax rules will apply.
__________________
“That’s the second biggest monkey head I’ve ever seen!”
Reply With Quote
The following 4 users would like to thank aSwissInTheUS for this useful post:
  #13  
Old 05.08.2019, 10:19
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 26,754
Groaned at 1,671 Times in 1,280 Posts
Thanked 31,042 Times in 14,831 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
To be precise it would have to be spent by the end of the year it is received in.
That's what I implied.

Tom
Reply With Quote
The following 2 users would like to thank st2lemans for this useful post:
  #14  
Old 05.08.2019, 12:46
Forum Veteran
 
Join Date: Jan 2016
Location: Lugano
Posts: 525
Groaned at 11 Times in 9 Posts
Thanked 565 Times in 270 Posts
LuganoPirate has an excellent reputationLuganoPirate has an excellent reputationLuganoPirate has an excellent reputationLuganoPirate has an excellent reputation
Re: Inheritance Tax question [BL]

It's actually quite hard to spend a million in a year without actually acquiring assets that would count towards your total wealth.

I suppose a First Class round the world on the QM2 for two would eat away a quarter, a new Ferrari, but that's an asset I think?

I guess it's possible but I wouldn't know how - though it would be fun trying!

Last edited by LuganoPirate; 05.08.2019 at 12:47. Reason: spelling
Reply With Quote
  #15  
Old 05.08.2019, 12:55
aSwissInTheUS's Avatar
Forum Legend
 
Join Date: Nov 2007
Location: Zurich area
Posts: 10,269
Groaned at 78 Times in 69 Posts
Thanked 15,526 Times in 6,895 Posts
aSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond reputeaSwissInTheUS has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
a new Ferrari, but that's an asset I think?
In canton Zurich you can write of 40% each year, including the year you bought the car.
Reply With Quote
This user would like to thank aSwissInTheUS for this useful post:
  #16  
Old 05.08.2019, 14:05
Forum Legend
 
Join Date: Mar 2016
Location: Leimbach, Zürich
Posts: 5,548
Groaned at 317 Times in 252 Posts
Thanked 6,092 Times in 3,075 Posts
EdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
To be exact: The nationality of the deceased is of no relevance. Where they died is also not of relevance. Important is where they have been a resident. There will be no Swiss (actually Canton) inheritance tax if a Swiss which has his domicile abroad dies while visiting Switzerland. On the other hand, if a Swiss domiciled foreigner dies while being outside of Switzerland, Swiss (actually Canton) inheritance tax rules will apply.
I wrote it like that since I did not know every exact detail of Swiss inheritance law. Each country has it's own rules. I moved out of the Netherlands for a couple of years now for example, but if I would die now Dutch tax is still due (Even on my Swiss belongings, and even if I choose to handle the heritance under Swiss law) unless I changed nationality, this damn effect last for 10 yrs.
Reply With Quote
  #17  
Old 05.08.2019, 14:20
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,921
Groaned at 285 Times in 234 Posts
Thanked 15,385 Times in 8,557 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
I wrote it like that since I did not know every exact detail of Swiss inheritance law. Each country has it's own rules. I moved out of the Netherlands for a couple of years now for example, but if I would die now Dutch tax is still due (Even on my Swiss belongings, and even if I choose to handle the heritance under Swiss law) unless I changed nationality, this damn effect last for 10 yrs.
You keep banging on about this however it's totally irrelevant to this thread, the OP was very clear in his first post!
Quote:
View Post
Hi All,

Is there a tax liability in Switzerland (specifically in canton Basel Land)?
Please notice that I am not discussing the tax liability abroad. I've got other resources to deal with that question.

Thanks in advance
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
This user groans at fatmanfilms for this post:
  #18  
Old 05.08.2019, 14:43
Forum Legend
 
Join Date: Mar 2016
Location: Leimbach, Zürich
Posts: 5,548
Groaned at 317 Times in 252 Posts
Thanked 6,092 Times in 3,075 Posts
EdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond reputeEdwinNL has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
You keep banging on about this however it's totally irrelevant to this thread, the OP was very clear in his first post!
You better bang your head against the wall instead of annoying me and others here for no proper reason at all.

It is relevant since it discusses the possibility of tax (or lack of such possibility) due in Switzerland and last time I looked Switzerland is not to be considered abroad on this forum. Also I made the last post in reaction to aSwissInTheUS explaining to him why I choose such wording.

And I keep banging on about this... If only one posting already is considered "keep banging on" the internet is no place for you.
Reply With Quote
  #19  
Old 05.08.2019, 14:49
Mica's Avatar
Forum Veteran
 
Join Date: Oct 2007
Location: Zurich
Posts: 754
Groaned at 1 Time in 1 Post
Thanked 955 Times in 421 Posts
Mica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond reputeMica has a reputation beyond repute
Re: Inheritance Tax question [BL]

For Basel-Stadt:
The tax code regulates inheritance taxes at § 117 et seq.
https://www.gesetzessammlung.bs.ch/a...of_law/640.100

For the purpose of the OP's question §118 is relevant:
"Die Steuerpflicht besteht, wenn:
a) der Erblasser oder die Erblasserin den letzten Wohnsitz im Kanton hatte oder der Erbgang im Kanton eröffnet worden ist;
b) der Schenker oder die Schenkerin im Zeitpunkt der Zuwendung den Wohnsitz im Kanton hat;
c) im Kanton gelegene Grundstücke oder Rechte an solchen übergehen.
2 Im internationalen Verhältnis besteht die Steuerpflicht ferner, wenn im Kanton gelegenes bewegliches Vermögen übergeht, das nach Staatsvertrag dem Betriebsstätte- oder dem Belegenheitsstaat zur Besteuerung zugewiesen ist."


In other words from a Swiss (explicitly Basel-Stadt) perspective there would only be a tax liability of the recipient if (i) the deceased had his or her final domicile in Basel-Stadt or the estate is dealt with there, (ii) real estate in Switzerland is transferred, (iii) on certain movable property if dealt with in a double taxation agreement.

This being said a direct inheritance, i.e. parent to child, would be exempt in Basel-Stadt, according to §120.
"§ 120
1 Von der Erbschafts- und Schenkungssteuerpflicht sind befreit:
a) der Ehegatte, die Nachkommen, die Adoptivnachkommen und die Pflegekinder der verstorbenen oder der schenkenden Person;"



Overlooked that the OP is based in Baselland:
But the principles are similar:
http://bl.clex.ch/app/de/texts_of_law/334

§ 3
2. Geltungsbereich
1 Der Schenkungssteuer unterliegt jeder schenkungsweise Erwerb von Grundstücken, die im Gebiete des Kantons gelegen sind.
2 Der Erwerb beweglichen Vermögens unterliegt der Schenkungssteuer, sofern der Schenker zur Zeit der Schenkung Wohnsitz oder Aufenthalt gemäss den Artikeln 23–26 ZGB im Kanton hatte.


§ 9 *
II. Ausnahmen
1
Von der Erbschafts- und der Schenkungssteuer sind befreit:
[...]
b. Ehegatten, Eltern und direkte Nachkommen sowie die eingetragene Partnerin oder der eingetragene Partner des Erblassers oder Schenkers;
[...]
__________________
Liability for any statements hereinabove excluded! - Need a Swiss lawyer PM me.

Last edited by Mica; 05.08.2019 at 18:05. Reason: wrong Canton
Reply With Quote
The following 2 users would like to thank Mica for this useful post:
  #20  
Old 05.08.2019, 15:17
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 17,921
Groaned at 285 Times in 234 Posts
Thanked 15,385 Times in 8,557 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Inheritance Tax question [BL]

Quote:
View Post
You better bang your head against the wall instead of annoying me and others here for no proper reason at all.

It is relevant since it discusses the possibility of tax (or lack of such possibility) due in Switzerland and last time I looked Switzerland is not to be considered abroad on this forum. Also I made the last post in reaction to aSwissInTheUS explaining to him why I choose such wording.

And I keep banging on about this... If only one posting already is considered "keep banging on" the internet is no place for you.
To add something useful, is Dutch tax payable by the estate or the person receiving the inheritance? It's possible to be taxed by both countries.
Reply With Quote
This user would like to thank fatmanfilms for this useful post:
Reply

Tags
inheritance tax




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Swiss inheritance law question Cynthea Family matters/health 74 12.04.2018 23:19
Inheritance Law Question Papri Family matters/health 18 16.11.2015 11:21
A legal question on inheritance claim... happyeye Family matters/health 33 24.07.2014 17:57
Inheritance tax mackbest Finance/banking/taxation 1 25.02.2014 18:14
Inheritance tax question..uk to switz.. scotia_aeg Finance/banking/taxation 2 28.03.2009 18:13


All times are GMT +2. The time now is 10:12.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0