Switzerland: An Overview

Switzerland Remains an Attractive Jurisdiction for International Private Clients

Switzerland continues to rank among the world’s foremost jurisdictions for internationally mobile individuals, entrepreneurial families and family offices. Political stability, legal certainty, a sophisticated financial sector and a highly developed system of private banks, family offices, fiduciaries and specialist advisers make Switzerland an attractive location for residence and wealth planning.

Recent international developments have reinforced this position. In particular, changes to tax regimes in traditional wealth planning jurisdictions and continued geopolitical uncertainty have prompted many international families to reassess their residence, succession and governance structures. Switzerland continues to benefit from this trend, attracting individuals seeking stability and long-term wealth preservation.

Private client work has consequently become increasingly international. Families often hold assets in multiple jurisdictions, possess several nationalities or maintain residences in different countries. Effective wealth planning therefore requires co-ordinated advice across legal systems, tax regimes and family governance structures.

Cross-Border Succession Planning

Cross-border succession planning remains a central focus of private wealth practice.

A significant development was the revision of Switzerland’s private international inheritance law, which entered into force on 1 January 2025. The reform reduces the risk of competing jurisdictions and conflicting decisions in international estates and provides greater legal certainty for families with connections to multiple countries. In particular, Swiss nationals holding dual citizenship enjoy greater flexibility when choosing the applicable succession law.

The reform reflects the increasingly international nature of modern families and their assets and has prompted many clients to review existing estate planning arrangements.

The revised Swiss inheritance law, which entered into force in 2023, has likewise become firmly established in practice. The reduction of compulsory heirship rights has increased testamentary freedom and provides greater flexibility in structuring wealth transfers. As a result, many wills and inheritance agreements have been updated to reflect the revised legal framework.

Trusts, Foundations and Family Governance

Although Switzerland has decided not to introduce a domestic trust, trust structures continue to play an important role in international wealth planning.

Recent Federal Supreme Court decisions have provided welcome guidance on the treatment of trusts under Swiss civil and tax law. In particular, the Court held that assets validly transferred into an irrevocable trust during the settlor’s lifetime do not form part of the settlor’s estate. A further decision clarified aspects of the Swiss wealth tax treatment of trust beneficiaries. Together, these decisions enhance legal certainty for international families using trust structures.

Developments are also underway regarding Swiss family foundations. Following parliamentary initiatives aimed at modernising the legal framework, legislative work is ongoing to expand the range of permitted purposes for family foundations and to strengthen their role as succession and governance vehicles for entrepreneurial families.

Philanthropy and family governance continue to gain importance in private wealth planning. Wealth owners increasingly seek integrated solutions combining succession planning, governance arrangements, tax considerations and charitable activities. At the same time, philanthropic initiatives help engage the next generation in the stewardship of family wealth.

Swiss charitable foundations have also benefited from a more pragmatic administrative practice. Since 2024, the Zurich Cantonal Tax Administration has accepted appropriate remuneration of members of the governing body of tax-exempt charitable foundations without jeopardising tax-exempt status. A more flexible approach has also been adopted towards charitable activities abroad, reflecting a broader trend towards a modern and pragmatic approach to charitable foundations.

Transparency and Anti-Money Laundering

Switzerland continues to strengthen its anti-money laundering framework in line with international standards and the recommendations of the Financial Action Task Force (FATF).

A major reform will enter into force on 1 October 2026 with the revised Anti-Money Laundering Act (AMLA) and the introduction of a federal Transparency Register for beneficial owners of Swiss legal entities and certain foreign legal entities.

The reform aims to improve transparency regarding ownership and control structures while strengthening the fight against money laundering, terrorist financing and the circumvention of international sanctions. Legal entities in scope will be required to maintain accurate information on their beneficial owners and report it to the new register. Although the register will not be publicly accessible, designated authorities and persons subject to statutory due diligence obligations will have access.

The revised AMLA also extends due diligence obligations to certain advisory activities presenting increased money laundering risks. Consequently, certain legal, fiduciary and other professional advisory services connected with non-operating entities and real estate transactions will become subject to anti-money laundering obligations. For professional advisers, the reform reflects the continued expansion of Switzerland’s anti-money laundering framework and will require enhanced compliance procedures.

Taken together, these reforms reinforce transparency, regulatory certainty and confidence in Switzerland’s financial centre.

Tax and Regulatory Developments

Swiss private wealth taxation remains stable, although several important reforms have recently been adopted.

In November 2025, Swiss voters rejected a proposed federal inheritance tax initiative. As a result, Switzerland continues to maintain its traditionally favourable approach to wealth transfers. No federal inheritance or gift tax exists, while transfers to spouses and descendants remain exempt from inheritance and gift tax in almost all cantons.

Switzerland’s lump-sum taxation regime remains an important factor for internationally mobile high net worth individuals relocating to Switzerland. Although eligibility requirements differ between cantons, the regime continues to contribute to the country’s attractiveness as a destination for private wealth.

Swiss voters have also approved the abolition of the imputed rental value for owner-occupied residential property. Expected to enter into force on 1 January 2029, the reform will replace the long-standing system under which homeowners were taxed on a notional rental income while being entitled to deduct mortgage interest and certain maintenance costs. However, the reform is expected to be accompanied by a new tax on secondary homes, which may increase the tax burden for owners of such properties.

Another important reform is the introduction of individual taxation, approved by the electorate in March 2026. The current system of joint taxation of married couples will gradually be replaced by separate taxation irrespective of marital status. The reform is intended to eliminate the so-called marriage penalty and is expected to enter into force by 2032.

International tax transparency continues to expand. Switzerland is implementing the OECD Crypto-Asset Reporting Framework (CARF), further integrating crypto-assets into the international automatic exchange of information regime. The first exchanges of crypto-asset information are expected from 2027 onwards, subject to parliamentary approval of the relevant partner jurisdictions.

Looking Ahead

Private client work in Switzerland continues to evolve rapidly. International mobility, increasing transparency requirements, digital assets and more complex cross-border family structures are reshaping wealth planning.

Families increasingly expect integrated advice combining succession planning, tax considerations, governance structures and philanthropic objectives within a coherent long-term strategy. As wealth structures become more international and regulation continues to evolve, early planning and co-ordinated cross-border advice are becoming more important than ever.

At the same time, developments in anti-money laundering, tax transparency and international reporting standards continue to influence the structuring and administration of private wealth. Digitalisation and the growing use of artificial intelligence are also changing the delivery of private wealth services, with greater emphasis on data protection, cybersecurity and operational efficiency.

Switzerland remains exceptionally well positioned for international private wealth planning, offering legal certainty, political stability, an established financial centre and extensive expertise in advising internationally mobile individuals, entrepreneurial families and family offices.