Frequently used in wealth management, trust structures are also very efficient tax optimization tools. The Hague Convention is applicable in Switzerland since July 2007 and has brought multiple changes to the sector.

 

The treaty’s content is very complete in terms of defining trust structures but contains no specific directives regarding their taxation. Each signatory country is free to apply its own taxation policy within its fiscal territory. Given the current canton-specific trust taxation legislation in Switzerland, the issue has been all-important. Switzerland had to adopt a compromising text that satisfies the parties involved without deteriorating its attractiveness in comparison with foreign competitors.

 

Via the Swiss taxation conference, the Swiss government has issued a new guideline that aims at establishing a common framework for trusts taxation within the confederation. The impact of this new guideline on trusts in Switzerland remains to be seen.

 

The comparison between the current framework in Switzerland and its neighbour countries will provide the participants to our conference with an in-depth analysis of the future of trusts in the confederation.

 

Among the key topics to be fully covered are:

• Switzerland as a jurisdiction of choice for trusts administration:
  • Confidentiality, know-how and the reputation of Swiss financial centres: a reasonable regulatory approach preventing the risk of over-regulation currently threatening some of the other offshore jurisdictions
  • Switzerland as a “complete” financial hub offering some potential synergies among different branches in the industry (asset management, investment advisory, custody, fiduciary services, etc…)
  • The outlook for the tax-payer before and after the guideline

• Will The Hague Convention usher into a domestic market for trusts in Switzerland?
  • What lessons can be learned from Italy’s “trusts interni” approach and Malta’s inclusion of trusts in its civil law system?
  • The alternative situation of San Marino, Liechtenstein, Luxembourg: trusts markets for foreign clients only

• Tax treatment of trusts
  • A clear and solid framework needed, at least for “foreign” trusts
• Comparison with other civil law countries recognising trusts or otherwise coping with them (Italy, France, Austria)
• Possession of real estate in Switzerland by a trust

 

• The limitations of the new guideline

• The importance of trusts for Swiss family offices

• Trusts Swiss Real Estate Holding

Glossary

With the best trusts experts...

Mrs Laetitia Ahlin

(Managing Director; Fidserve SA) Switzerland

Mr Paolo Panico

(Managing Director; Private Trustees) Switzerland

Dr Ludovic Verbist

(Managing Director; AAMIL Ltd) Switzerland

Dr Ramona Piscopo

(International Tax Lawyer, Loyens & Loeff) Switzerland

Mr Jean-Blaise Eckert

(Partner, Lenz & Staehelin) Switzerland

Dr Marcel R. Jung

(International Tax Lawyer, Bär & Karrer) Switzerland

Dr Britta Pfister

(Global Head of Wealth Planning, Rothschild Trust) Switzerland

Mr Pietro Sansonetti

(Partner, Schellenberg Wittmer) Switzerland