Many people who have been living in Switzerland for years have assets spread across both countries: a bank account here, a property or a life insurance policy there – and sometimes the other way round. And the vast majority do not have a will in either country. Not because they don’t want one, but because they keep putting it off. The problem is that when the time comes, there’s no one left to sign the will.
Switzerland is not part of the EU, and the 2012 European Succession Regulation does not automatically apply here. If you die in Switzerland without having made a will, the Swiss Civil Code determines how your estate is distributed in this country. For assets in Spain, Spanish law applies. And the two systems are not coordinated with one another. This can lead to parallel proceedings in two different jurisdictions, with deadlines and costs mounting up whilst the heirs wait.
Making a will in Switzerland is simpler than many people think: the law recognises holographic wills – those written entirely by hand, dated and signed, without the need for a notary. However, if you have assets in Spain, it is advisable to go one step further and include an express declaration stating which law you wish to govern your succession. Without such a declaration, the courts will decide, and that takes time. Inheritance tax adds another layer of complexity: in Switzerland, this is regulated by the cantons, and whilst some do not levy any tax on transfers between parents and children, others do. In Spain, it is set by the autonomous communities. These are two systems that operate in parallel, and it is worth understanding them before you need them.