I will be receiving an inheritance of my swiss uncle and I heard that the Swiss bank will charge me almost a 40% to receive that inheritance (Something related with FATCA) because I’m a US person. Is that true? My lawyer here told me they should not charge me anything since the US is tax free when it comes to receive an inheritance even if I am sending all the money to the US and closing the Swiss account. Does anyone know about this? Thank you in advance!!
Hi,
Most Swiss cantons charge an inheritance tax to non-lineal descendents/ other persons receiving a Swiss inheritance. The rate or rate range can be determined from this Credit Suisse chart by first determining the canton responsible and then reviewing the relationship column:
https://www.credit-suisse.com/media/...tabelle-en.pdf
Only a few U.S. states charges inheritance tax (as opposed to an estate tax) so your attorney is probably right regarding U.S. inheritance taxes.
Awesome! Thanks for your fast reply.
I don ́t think the taxing has to do with FATCA, but the rest sounds about right. The tax ranges from 0% in Kanton Schwyz up to 50% in Kanton Basel land, also some Kantone will rip you for a "Schenkungssteuer" or a Gifting-tax as well.
And the law allows for a double taxing for international inheritances, so if your country wants their pound of flesh you bleed twice.
Who knows, you may be able to get a decent meal at McDonalds out of your inheritance after your new buddy the Swiss taxman comes a-calling.