The Swiss Government has acknowledged opposition to a proposal to enable the creation of Swiss trusts.
During a meeting on September 15, 2023, the Federal Council said there was insufficient political backing for the proposal to introduce trusts and in particular opposition to the proposed tax framework.
Currently, foreign trusts established abroad are recognized in Switzerland, under the Hague Convention on Trusts, which entered into force on 2007. The Government had earlier launched a consultation on plans to establish Swiss trusts, so that Swiss taxpayers would not have to resort to creating a trust overseas.
Consultation respondents were reportedly apathetic about the plans and called for the status quo regarding the taxation of trusts to be maintained.
The Government stated: "Even if a majority of participants in the consultation agree that Switzerland lacks an instrument for wealth management and estate planning, many are sceptical about the idea of creating a Swiss trust. Given the results of the consultation, the Federal Council comes to the conclusion that the introduction of trusts into Swiss law is not likely to attract a political majority at present."
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