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Old 02.08.2019, 13:02
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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
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Old 02.08.2019, 15:08
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Re: Inheritance Tax question [BL]

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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.
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Old 02.08.2019, 15:19
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Re: Inheritance Tax question [BL]

No, but you'll have to declare it in your next tax return for wealth tax calculations.
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Old 02.08.2019, 16:47
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Re: Inheritance Tax question [BL]

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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
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Old 05.08.2019, 10:01
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Re: Inheritance Tax question [BL]

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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.
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Old 05.08.2019, 10:19
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Re: Inheritance Tax question [BL]

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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
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Old 02.08.2019, 16:22
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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
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Old 03.08.2019, 10:03
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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
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Old 03.08.2019, 10:42
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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.
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Old 03.08.2019, 12:06
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Re: Inheritance Tax question [BL]

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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.
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Old 03.08.2019, 14:54
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Re: Inheritance Tax question [BL]

Swiss-wide inheritance tax, valid as at 1.2019, here. (pdf)
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Old 05.08.2019, 10:17
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Re: Inheritance Tax question [BL]

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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).

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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.
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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Old 05.08.2019, 10:07
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Re: Inheritance Tax question [BL]

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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.
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