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.

No, but you'll have to declare it in your next tax return for wealth tax calculations.

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

Unless you spend it all in the meantime.

Tom

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

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.

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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.

Swiss-wide inheritance tax, valid as at 1.2019, here. (pdf)

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.

Thanks for that, but there was no loss.
I was only asking in order to be prepared, responding to my parents' request.

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).

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.

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On Strike - ChatGPT knows more than I, so use it (or doesn't it?)

That's what I implied.

Tom

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!

In canton Zurich you can write of 40% each year, including the year you bought the car.

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!

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.

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;
[...]

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Liability for any statements hereinabove excluded! - Need a Swiss lawyer PM me.

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.