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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15874
Experience:  International tax
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what inheritance laws apply to non resident owning a property

Customer Question

what inheritance laws apply to non resident owning a property in switzerland
Submitted: 3 years ago.
Category: Tax
Expert:  UKSolicitorJA replied 3 years ago.
-Could you explain your situation a little more?

Customer: replied 3 years ago.

I am resident UK and own a property in Vaud canton of Switzerland. I am preparing a will and would like to know if the Swiss inheritance laws apply and the inheritance tax implications with regard to the property. The value is approx CHF 750,000

Expert:  UKSolicitorJA replied 3 years ago.
Yes, if the property is in Switzerland, Swiss law will apply to any inheritance issues concerning the property and you should consult a Swiss lawyer. I will opt out
Customer: replied 3 years ago.

thank you. is inheritance tax payable both in switzerland and u k.

Expert:  TaxRobin replied 3 years ago.
Hello,
I am a tax expert.
In answer to your question, the tax treaty between the UK and Switzerland generally only tax based on domicile. Meaning the estate of the person and inheritance is determined where the deceased was domiciled.
There is an exception and that is real estate. The treaty refers to this a immovable property. The country where the property is located then is allowed to tax.
In Switzerland the inheritance tax falls to the cantons. Most cantons levy an inheritance tax except the canton of Schwyz.
The amount of tax is usually calculated by the degree of relationship to the deceased.
The relief from being actually taxed in both countries (should the deceased be UK domiciled ) is covered under the Double Taxation Conventions. DTCs are treaties (agreements) which help prevent you being taxed by two countries if both countries have the right to tax the same property when a death occurs or a gift is made. The UK has a number of bilateral DTCs for taxes on estates, gifts and inheritances.
The agreement with Switzerland would apply.