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Switzerland as a Premier Destination for Wealth Management and Trust Services


Switzerland as a Premier Destination for Wealth Management and Trust Services

This article explores why Switzerland continues to be a leading destination for wealth management and trust services.

Why choose Switzerland for wealth management?

Switzerland is not only renowned for its skiing, exquisite timepieces, and fine chocolate but also holds an esteemed reputation within the private client community for its robust wealth management services and its growing expertise in managing trust structures.

The country’s long-standing political and economic stability, coupled with stringent confidentiality laws and a favourable tax regime, make it an attractive destination for wealth management.

Comprehensive wealth management services in Switzerland

Switzerland boasts a plethora of banks, investment managers, and professional service providers, including lawyers, trustees, and accountants. This extensive network ensures that individuals looking to manage their affairs within the jurisdiction have a wide array of expert services to choose from.

International clients also tend to greatly value the language capability of professionals in Switzerland, where many practitioners offer services in several languages. This is a distinct advantage over monolingual jurisdictions.

As a country of some 8.8 million people in the heart of Western Europe, Switzerland is a destination where wealthy families feel comfortable visiting. Good air communications make travel easy and enable Swiss-based service providers to form and cement long-term business relationships with their clients during regular visits to the country.

Legal framework and trust recognition

Despite its civil law framework, Switzerland has recognised trusts for many years and further solidified this by ratifying the international Hague Convention on Trusts in 2007. This ensures that trusts are considered valid and enforceable legal obligations within the country.

Swiss-administered trusts are often governed by the law of a recognised trust law jurisdiction, allowing for any technical issues to be resolved under those laws rather than Swiss laws.

Tax considerations and advantages

Switzerland offers significant tax advantages, notably the lump sum taxation method, which is exceptionally beneficial for wealthy individuals. This taxation strategy allows individuals to base their income tax on declared living expenses rather than total income, substantially reducing potential tax liabilities. Moreover, capital gains taxes are not charged on assets other than Swiss real estate, and several cantons offer the advantage of no inheritance taxes, further enhancing Switzerland’s appeal for managing and growing family wealth.

Swiss trustee licensing

The Swiss trustee licensing regime ensures that trustees meet high standards of capital, competence, and probity, providing clients with added confidence in their Swiss financial partners.

Embracing new opportunities

Switzerland is increasingly recognised as the premier choice for affluent international clients. Its robust legal framework, tax advantages, and stable economic environment make it a compelling option for those seeking to relocate and optimise their wealth management strategies.

Explore Summit Group’s solutions for continuity

Learn more about our specialised trust and fiduciary services and discover how we can help facilitate a smooth transition of your wealth management to Switzerland.

Our expertise in managing trusts across multiple jurisdictions, alongside a broad array of fiduciary services, ensures tailored solutions that meet your unique needs and goals.

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