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Introduction

Indian high-net-worth individuals are increasingly reviewing how and where they hold global assets. While many are consolidating wealth and operations in India, a growing number of Non-Resident Indians (NRIs) are establishing international structures to enhance efficiency, flexibility, and protection.

Although the UAE remains a preferred destination, more families and entrepreneurs are now looking beyond it — seeking jurisdictions that combine stability, transparency, and long-term strategic value.

One jurisdiction that has gained significant traction among both Indian resident and NRI investors in recent years is Cyprus. Its alignment with English Common Law, EU membership, and investor-friendly tax framework make it ideal for those wishing to hold assets in Europe while maintaining strong ties to India and the Middle East.

This article outlines how a Cyprus Holding Company can serve as a practical, compliant, and efficient vehicle for Indian individuals and families to structure and preserve their international wealth.

The Benefits of Using a Cyprus Holding Company

Cyprus offers one of the most competitive corporate tax frameworks in the EU, with a standard rate of 12.5%. Through the Notional Interest Deduction (NID) mechanism, this can effectively be reduced to as low as 2.5%, subject to specific conditions

Several income streams benefit from ful or partial tax exemptions, including:

• Dividend income
• Interest income (excluding interest arising from ordinary business activities, which is taxable)
• Foreign exchange gains (except those linked to currency trading or related derivatives)
• Gains from the disposal of securities

Additionally, there is no withholding tax on dividends, interest, or royalties paid to non-resident shareholders. There is also no capital gains tax, except on the sale of immovable property located in Cyprus or shares in a company that holds such property.

Cyprus also maintains an extensive network of Double Taxation Treaties (DTTs), including India, the UAE and other popular places to invest. As an EU member state, Cyprus benefits from EU Directives, notably the EU Parent-Subsidiary Directive, which allows for tax-efficient repatriation of profits between group companies within the EU, provided the relevant substance and residency criteria are met.

For Indian families managing global investment portfolios, these features make Cyprus an attractive jurisdiction through which to hold and manage assets, invest into Europe, or consolidate ownership of international operating companies.

Economic Substance

In today’s global tax landscape, economic substance is no longer optional. Cyprus has fully aligned with OECD and EU substance standards, encouraging genuine business activity and transparent governance.

Rather than seeing these requirements as restrictive, Indian investors can view them as a strategic advantage. Establishing a Cyprus holding company with real substance not only enhances credibility with regulators and financial institutions and regulators but also provides greater protection against challenges from tax authorities in both the country of residence and source jurisdictions.

A well-structured Cyprus entity meets international standards for compliance and transparency , ensuring it remains OECD-compliant and whitelisted, and simplifying banking, investment, and cross-border operations.

As international tax frameworks continue to evolve, maintaining a compliant structure in a robust jurisdiction such as Cyprus will help future-proof your wealth planning strategy, reducing the likelihood of future disruptions or restructuring needs.

How Can Dixcart Help You?

Dixcart Cyprus provides efficient, solutions-driven corporate support within one of the EU’s most flexible and well-regulated jurisdictions. Our team combines local technical expertise with the strength of the international Dixcart network, delivering clear, practical guidance from formation to ongoing administration.

We assist clients in establishing and maintaining Cyprus companies that meet all governance and substance requirements. Our services include:

• Company formation and administration
• Accounting and management support
• Provision of qualified local directors and company secretarial services
• Assistance with banking, investment, and asset management coordination

For clients establishing an operational presence, we also offer serviced office facilities at the Dixcart Business Centre in Limassol — providing a ready, professional base in Cyprus.

As a family-led firm with over 50 years of experience, Dixcart understands how to protect and grow wealth across generations. Whether based in India or abroad, our goal is to create efficient, compliant structures that align with your long-term ambitions.

When the UK ended its non-domicile tax regime in April 2025, the change was more than just a technical tax reform, it was a signal that the country’s relationship with global wealth had fundamentally shifted. For over a century, the non-dom rules allowed internationally mobile individuals to limit their UK tax exposure; that framework has now gone.

The New Residence-Based Reality

The UK now taxes residents on a worldwide basis. The moment you become UK resident, your global income and gains are subject to UK tax, and after a certain period, your worldwide assets may also be liable for inheritance tax.

This shift does not just affect the ultra-wealthy; it affects anyone with assets abroad, property back home, or business interests overseas. Transitional measures exist, but they are temporary.

Why Your Will Matters More Now

In the non-dom era, estate planning often relied on trusts, offshore structures, or the remittance basis to manage exposure. Today, those tools are more limited. That makes the Will more than a formality but a central tool in making sure your wealth is passed on according to your wishes.

The Three Essential Functions of a Will Today

In the post-non-dom UK, a Will does three things:

1. It defines the narrative of your estate in a way the law cannot: who inherits what, in which jurisdiction, and under what conditions.
2. It gives your executors the framework to navigate cross-border probate and the complexities of conflicting inheritance laws.
3. Perhaps most importantly, it allows you to respond directly to the new tax environment, such as structuring bequests, timing disposals, and integrating reliefs so that value passes as intended, not as dictated by the blunt force of intestacy rules.

The reality is that HMRC now has a much broader claim on the wealth of UK residents. Without a Will, that claim will be exercised with maximum inefficiency and minimum alignment to personal wishes. The state decides how your estate is divided, often in ways that are inefficient and misaligned with your wishes.

We are entering a period where private wealth structuring will need to be far more deliberate. Those with international ties will have to think globally but act locally, drafting Wills that respect multiple legal systems, anticipating not just the tax burden but the human dynamics of succession. In this context, the Will is no longer the final step in managing your affairs; it is the foundation.

What We Do

Our private client consultants offer a service tailored to our clients’ unique needs. Whether you simply need a Will to cover your UK assets or a more detailed one that includes tax planning or trust arrangements, we will tailor it to fit your personal needs and circumstances.

At Dixcart UK, we recognise that every client’s situation is unique, and we are committed to delivering personalised solutions that address your specific objectives and concerns.

For more information about Wills, please contact us: advice.uk@dixcart.com.

Planning the future of your wealth is not just about tax efficiency or legal structures; it is about protecting what matters most and creating a legacy that reflects your values. Thoughtful estate planning gives you the confidence that your assets are not only safeguarded but also positioned to benefit your family in meaningful ways. It allows you to take control of how your wealth is transferred, ensuring it supports the next generation while minimising unnecessary risks or taxes.

Below are some of the main tools used in estate planning, along with the benefits they can offer.

1. Family Investment Companies (FICs)

A Family Investment Company is a private company used to hold and manage family wealth. They allow individuals to transfer assets from their personal estates into a corporate structure while retaining control over those assets, including decisions about the board’s composition

However, it is more than just a holding vehicle. If the Founders lend money to the FIC, the loan can be gradually repaid using the FIC’s post-tax profits, alongside any dividends distributed from its earnings. This arrangement can offer the Founders a continuous stream of income.

Alternatively, if the loan’s capital is no longer required, the Founders may choose to gift its value to other family members. This would remove the loan’s value from their taxable estate for Inheritance Tax purposes, provided they survive for seven years following the date of the gift.

There are a number of potential tax advantages when using FICs, including Inheritance Tax, but these will vary depending on the size of the investments/loans, the assets held by the FIC, and the personal circumstances of the Founders. It is therefore very important to speak with a tax specialist from the outset, who can provide guidance on the tax merits of an FIC, tailored to the specific circumstances and objectives of each prospective Founder.

2. Trust Structures

They provide a structured framework for aligning wealth transfer with long-term family goals and values, enabling trustees to manage and distribute assets in a purposeful and strategic manner. At the same time, trusts can offer resilience against divorce settlements, creditor claims, or imprudent financial decisions, while facilitating a seamless transfer of assets that avoids the delays and public scrutiny of probate. When integrated into a comprehensive strategy, trusts can also enhance tax efficiency, helping to reduce exposure to inheritance and capital gains taxes while preserving the integrity of the family legacy.

Trusts can be established during a person’s lifetime or through a Will, with assets transferred to trustees who manage them for the benefit of the chosen beneficiaries.

3. Lifetime Gifting

Lifetime gifting is a further strategy that combines financial efficiency with relational impact. By transferring assets during one’s lifetime, families can reduce the eventual taxable estate. Gifting also allows for a gradual transfer of wealth, mitigating sudden disruptions to family financial dynamics and fostering financial literacy across generations.

Gifts made sufficiently in advance may fall outside the estate for inheritance tax purposes, amplifying the long-term efficiency of such transfers.

4. Comprehensive Tax Planning

At the foundation of all these strategies lies comprehensive tax planning. Coordinating personal, family, and business finances in a holistic manner is essential for preserving and growing wealth. Effective planning ensures that all available allowances and reliefs are maximised, strategically reduces exposure to income tax, capital gains tax, and inheritance tax, and, for internationally connected families, mitigates the risk of double taxation.

About us

Dixcart UK has extensive experience in designing bespoke estate plans for a wide range of clients, including families, entrepreneurs, and both UK and non-UK domiciled individuals. No two situations are the same, which is why we take the time to understand your personal, business, and family priorities before creating a strategy tailored to your needs.

For more information about the above topic, please contact us: advice.uk@dixcart.com.

Establishing EU Presence Through Malta

Expanding a business internationally presents valuable opportunities – but success depends on structure and foresight. Entrepreneurs and business leaders often face challenges in selecting the right corporate structure, navigating unfamiliar legal frameworks, and allocating resources effectively. For those seeking an EU base, Malta provides a strategic, stable, and advantageous location. Yet, navigating the process can appear complex.

At Dixcart Malta, we simplify that journey. Our multidisciplinary team supports clients across all sectors, providing tailored guidance and administrative support to ensure every company is structured correctly, compliant from day one, and positioned to benefit from Malta’s robust and business-friendly environment.

Step 1: Company Name Selection

The process begins with choosing a distinctive company name. In line with the procedures of the Malta Business Registry (MBR), the proposed name must be unique, not misleading, and appropriate for public use.

Entities may be incorporated in several forms, including:

• Single Member Private Exempt Company
• Private Limited Liability Company
• Public Limited Liability Company (offer made to offerees exceeds 50 in number)

Step 2: Share Capital Requirements

The required minimum share capital depends on the type of company being incorporated:

• Private Limited Liability Company:
  • Minimum share capital: €1,165
  • Minimum paid-up capital upon incorporation: 20%
• Public Limited Liability Company:
  • Minimum share capital: €46,588
  • Minimum paid-up capital upon incorporation: 25%

Step 3: Appointment of Company Officials and Beneficial Ownership Declaration

Company officials, including directors and a company secretary, must be formally appointed. These individuals carry responsibility for ensuring governance, compliance and the company’s ongoing administration.

Additionally, a Beneficial Ownership Declaration must be submitted, confirming the individuals who ultimately exercise control over the company, or benefit from the entity.

Step 4: Registered Office in Malta

Every company registered in Malta is legally required to have a registered office address located within the country. This serves as its official correspondence address for legal and administrative purposes, including communication from Maltese authorities. The registered office must be a physical location (not just a P.O. box) and is typically maintained by a corporate service provider or law firm if the company does not have its own premises in Malta.

Step 5: Drafting the Memorandum and Articles of Association

The Memorandum of Association is a key legal document that outlines the essential details of the company, including:

• The company’s objectives
• Registered office address in Malta
• Details of shareholders and directors
• Share capital and associated rights

This document serves as the company’s constitution and may be accompanied by the Articles of Association, which together govern the internal structure, regulations, and operations.

Step 6: Registration with the Malta Business Registry

Once documentation is complete and approved by the Malta Business Registry, this is submitted to the Registrar of Companies. Upon approval, a Certificate of Registration is issued, along with a unique company number.

Post-registration, the company gains legal personality and can:

• Enter into contracts
• Own property
• Hold bank accounts
• Engage with credit and financial institutions

If the company is carrying out an economic activity, registration with the VAT department would be required.

How Dixcart Malta Can Assist

Dixcart Malta combines local insight with international expertise to deliver a seamless experience. Our advisors manage every stage, from incorporation to ongoing compliance, ensuring each requirement is met efficiently and precisely. Beyond formation, we provide continued oversight and support to ensure full compliance with regulatory requirements.

Forming a company is just the beginning. Once established, the entity must be properly maintained, and this includes accounting, company secretarial, regulatory filings, tax returns, and more. Dixcart Malta is equipped to manage all these aspects efficiently. Our fully serviced office facilities offer an immediate operational base for clients establishing a physical presence in Malta.

Our goal is to build long-term relationships with our clients, by offering comprehensive ongoing support, including:

• Maintenance and filing of statutory documentation
• Preparation and submission of annual returns and financial statements
• Convening and recording of Annual General Meetings (where applicable)

Conclusion: Why Choose Malta and Dixcart?

Malta has become a preferred jurisdiction of choice for companies looking to establish a base within the European Union. It offers a fully EU-compliant regulatory framework, a competitive tax regime, access to over 70 double tax treaties, and efficient legal structures such as the participation exemption and tax refund mechanisms.

With a presence across seven jurisdictions, Dixcart provides integrated expertise and cross-border structuring solutions. In Malta, we combine this global reach with local knowledge, helping clients establish and manage entities with clarity, confidence, and control.

For further information or to begin the incorporation process, please contact us at advice.malta@dixcart.com.

The jurisdiction of Switzerland offers numerous advantages.

Based in the heart of Europe, it has a long tradition as an internationally respected finance and banking hub. It is renowned as a centre for private wealth.

The Challenge

Switzerland is considered a top level jurisdiction, in terms of international standards.

This has an impact on the establishment and management of companies, as much as it affects other areas of life in Switzerland.

• We are often asked by clients, if there might be an alternative, a first step towards setting up a company in Switzerland.

The answer is yes.

The Solutions

Non-Swiss companies often need Swiss based employees, particularly when they are expanding into the Swiss market for the first time. Quite often this is to carry out a business development role, but there are many other situations when a Swiss employee or employees are needed.

Frequently, a local representative is needed in Switzerland, but it might be a little early to establish a Swiss company.

Two Options

There are two options:

• The non-Swiss company directly hires the employees and Dixcart Switzerland represents the company;

OR

• Dixcart Switzerland opens a branch, in Switzerland, for the non-Swiss company and runs the branch. This offers the advantage of providing more substance in Switzerland.

What Advice and Support can Dixcart in Switzerland Provide?

We can provide advice as to the best solution to meet the particular circumstances and can help generate an effective business plan. In addition we can provide day to day administrative services to ensure the smooth running of this first step into the Swiss market.

Dixcart Switzerland services include:

• Bookkeeping
• Business plans
• Payroll
• Preparation of annual accounts
• Preparation of annual returns
• Swiss insurance expertise
• Swiss social security expertise
• Value added tax reporting and payment (VAT)

Payroll Services

Specific services in relation to the payroll function include:

• Salary calculations
• Social security calculations and payments
• Payroll tax calculations and payments

Serviced Offices

Serviced offices are available in the same premises as Dixcart Switzerland. Desks with internet connection, are used by serviced office clients, with telephone lines and secretarial support available, if required.

What Additional Support is Available – When a Company is Established in Switzerland?

If the business in Switzerland expands and it becomes viable and beneficial to establish a Swiss company, Dixcart Switzerland can assist with:

• Accounting

Working with clients at every stage of their business life cycle, we are able to set up the complete internal finance function, if required. 

• Management Accounts

Dixcart frequently provide management accounts for a large variety of different companies. These can be generated monthly, quarterly or annually, to help make running the company as efficient as possible.

• Provision of Directors

A number of the companies that Dixcart manage have a Dixcart professional on their Board of Directors. The technical professional expertise, impartial perspective and extensive experience at director level  that a Dixcart director can provide, is often of substantial benefit.

Additional Information

If you would like additional information regarding the first steps towards setting up a company in Switzerland, please contact Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com.

Malta: A Strategic Powerhouse in the Yachting Industry

Building on the introduction of the Small Commercial Yacht Code in 2024, Malta is once again reinforcing its status as a global leader in the yachting sector, this time by updating its established Commercial Yacht Code.

Malta’s natural deep-water harbours, central Mediterranean location, and favourable climate make it a prime destination for yacht owners and operators. The widespread use of English, high quality of life, and modern infrastructure further enhances its appeal.

The country also benefits from a stable, transparent regulatory framework, innovative marinas, and a well-established network of international maritime professionals. Backed by a proud maritime tradition, Malta hosts one of the world’s largest and most respected yacht and ship registries. The Maltese flag is internationally recognised for its efficiency, credibility, and strong compliance standards.

The New Commercial Yacht Code: CYC 2025

Transport Malta’s Merchant Shipping Directorate has issued the fifth edition of the Commercial Yacht Code (CYC 2025), which officially entered into force on the 1^st July 2025. Existing commercial yachts are required to transition to the revised requirements by their first renewal survey following 31^st December 2025.

CYC 2025 replaces the previous 2020 version and reflects Malta’s commitment to aligning its regulations with the latest international standards in maritime safety, environmental sustainability, and technological innovation.

Scope and Applicability

The revised Code applies to commercial yachts with a load line length of 24 metres or more, carrying up to 12 passengers. It includes both vessels under 500 gross tonnage (GT) and those of 500 GT or more. 

Key Updates Under CYC 2025

Some of the notable revisions in the new Code include:

• Clearer Navigation Notations: Introduction of the “Extended Short Range” category (up to 150 nautical miles), distinguishing it from both the 60 nautical mile “Short Range” and “Unrestricted Navigation” designations.
• Stronger Focus on Environmental Sustainability: Implementation of new-build environmental standards to major refits, with support for hybrid and electric propulsion systems.
• Improved Safety Standards: Mandatory lightning protection, prohibition of asbestos in new installations, and compliance with the International Maritime Organisation (IMO) Polar Code.
• Crew Welfare Provisions: Updated requirements under the Maritime Labour Convention (MLC) and new guidelines concerning non-crew personnel onboard.
• Structural Integrity Revisions: Updated requirements related to structural strength, stability, freeboard, and watertight integrity.

Conclusion: Shared Efforts to reinforce Malta’s Global Position

The updated Code reflects the ongoing efforts of the responsible authority, along with the valuable input of various stakeholders, including yacht owners, management companies, recognised organisations, government surveyors, and specialist service providers. This collaborative approach ensures the Code remains both relevant and practical, while upholding the highest standards.

CYC 2025 is a demonstration to Malta’s continued investment in a forward-looking, internationally aligned maritime regulatory regime. It consolidates the country’s reputation as a comprehensive maritime hub, capable of supporting the full yacht lifecycle, from registration and compliance to operation and innovation.

How Dixcart Malta Can Assist

At Dixcart Malta, we support yacht owners and operators in navigating Malta’s regulatory landscape. Our services include:

• Yacht importation and registration
• Ensuring full compliance with regulatory frameworks
• Advisory on Malta’s commercial advantages, including tax, jurisdictional efficiency, and regulatory benefits

For detailed guidance or support, please contact Jonathan Vassallo or any of our expert team members at advice.malta@dixcart.com.

Companies House will introduce new legal requirements for identity verification for company directors and people with significant control (PSCs) from Tuesday 18 November 2025. However, anyone can choose to verify their identity now during the voluntary phase.

Identity verification (“IDV”) is the process of confirming that a person is who they claim to be. The aim of the IDV regime is to reduce the risk of fraud by making it harder to register fictitious directors and beneficial owners and to improve the integrity and accuracy of the public record at Companies House.

Who needs to have their identity verified?

• New directors will need to verify their identity before they can incorporate a company or be appointed to an existing company.
• Existing directors will need to confirm their identity has been verified when filing their next annual confirmation statement, during a 12-month transition period.
• Existing PSCs must verify their identity in line with an appointed date to be confirmed, also within the same year long period.
• Anyone on behalf of a company (e.g. company secretaries)
• Members of LLPs and other registration types

Individuals listed on multiple entities only need to verify their identity once.

The new IDV requirements will also apply to individual directors of overseas companies that have a UK establishment registered at Companies House. The timing of implementation will be the same as for UK companies but with specific transitional provisions for existing directors of overseas companies.

Implementation Timeline

• 8 April 2025: voluntary IDV for individuals was introduced
• 18 November 2025: IDV will become compulsory. A 12-month transition period will also begin in respect of existing directors, LLP members and PSCs
• Spring 2026: IDV will become compulsory for those filing documents at Companies House. Any third parties who are filing on behalf of a company will need to register as an authorised corporate service provider (“ACSP”)
• By the end of 2026: the 12-month transition period will end, and Companies House will start compliance checks.

These measures are part of a wider effort to tackle fraud, prevent the misuse of companies, and improve the accuracy of the companies register, providing investors, regulators and the wider business community with greater confidence about who controls UK companies.

Companies House estimates that between 6 and 7 million individuals will need to complete the identity verification process by November 2026. Since the soft launch in April 2025, over 300,000 individuals have already completed the process voluntarily.

To avoid delays, possible penalties, or rejection of company filings, we recommend beginning the process as soon as possible.

Speak to an Expert

We take the hassle out of the identity verification by managing the process for you with care and reliability. If you would like to speak with a member of the team, please get in touch: advice.uk@dixcart.com.

Switzerland’s accession to the Hague Trust Convention in 2007 marked a significant step in recognising and integrating foreign trusts into its legal framework. Since then, Swiss courts have progressively built a body of case law that provides both clarity and predictability for practitioners and international families.

Over the past decade, a consistent theme has emerged: the courts have demonstrated a pragmatic approach, applying established principles of Swiss law while accommodating the distinctive features of trusts. The result is an evolving set of rulings that strengthens Switzerland’s role as a trusted jurisdiction for administering and overseeing these structures.

Trusts and Succession – Exclusion from the Estate

In 2024, the Swiss Federal Supreme Court made a significant contribution to the limited Swiss case law on the treatment of trusts in Swiss estates.

In TF  5A_89/2024 (16 December 2024), the Federal Supreme Court addressed whether assets held in an irrevocable discretionary trust form part of the settlor’s estate, clarified the nature of beneficiary appointments, and examined the role of hotchpot (equalisation) in estate division.

The case involved a deceased settlor who had established an irrevocable discretionary trust during his lifetime. Following his death, legal heirs contested whether the trust assets, which only came to light after the distribution of the inheritance, were part of the deceased’s estate.

The Federal Supreme Court ruled that the funds within the trust had already been taxed during the settlor’s lifetime and therefore did not form part of the estate. It further ruled that the granting of beneficial status constituted an inter vivos gift, as it took effect during the settlor’s lifetime.

A further point of contention concerned the by-laws, which provided that after the settlor’s death, two of his children would benefit from the capital and income of the trust. The question was whether these beneficiaries were obliged to bring such benefits into hotchpot (equalisation) when dividing the estate. The Federal Supreme Court concluded that, in the case of a discretionary trust, the mere appointment of a beneficiary upon the settlor’s death does not constitute a lifetime gift requiring equalisation within the estate distribution.

These clarifications provide vital assurance for international estate planning. They reinforce the stability of cross-border trust structures and give families confidence that assets transferred into a properly established discretionary trust remain outside the settlor’s estate and will not later be reclassified as lifetime gifts.

Representation in Criminal Proceedings – Trustee Authority

In 1B_319/2022 (17 November 2022), the Federal Supreme Court clarified that only a trustee has standing to file a criminal complaint when trust assets are misappropriated; beneficiaries, even principals, cannot act directly before Swiss courts.

This decision underscores the trustee’s central role as the legal representative of the trust and prevents conflicting claims from beneficiaries, highlighting the importance of appointing a trustee with the requisite expertise, judgment, and independence.

Divorce Proceedings – Freezing Orders

Swiss courts have also demonstrated a pragmatic approach to trusts in matrimonial litigation. In the well-known Rybolovlev case, Mr Rybolovlev created two irrevocable Cypriot discretionary trusts in 2005 without his wife’s knowledge, shortly after she declined a post-nuptial agreement.

The main beneficiaries of the trust were himself and his two daughters, excluding his wife, who he indicated would benefit under his will.

Following their divorce, Mrs Rybolovleva sought to include her husband’s trust assets in the marital estate. The Swiss courts, applying the Hague Convention on the Recognition of Trusts, recognised the trusts’ validity and granted interim measures such as freezing orders to protect her potential claims. After three and a half years of disputes over interim measures, the spouses finally addressed the merits of their case, focusing on the liquidation of their marital property. The Geneva courts valued the trust assets as of the date they were settled, rather than at the time of the divorce, underscoring that irrevocable transfers without spousal consent must be assessed at the moment of alienation. The Federal Supreme Court confirmed that Swiss law respects the terms of foreign discretionary trusts while ensuring fairness in marital disputes.

The acceptance of freezing orders over assets held in foreign trusts demonstrates that, while respecting the integrity of trust structures, the courts will intervene to ensure equitable outcomes in complex cross-border disputes. This provides reassurance to spouses seeking fair results while reminding trustees that trust assets may be subject to interim measures in Switzerland.

(Federal Supreme Court of Switzerland, 5A_259/2010 of 26 April 2012).

Taxation and Transparency – The CRS Framework

In 2C_946/2021 (6 June 2023), the Federal Administrative Court confirmed that trust-related information may be subject to disclosure under the Common Reporting Standard (CRS), even when trustees or protectors are located abroad.

The case concerned a trust with two Argentine settlors whose information had been transmitted to the Federal Tax Administration (FTA) as part of Switzerland’s automatic exchange of tax information. Claiming that the transmission of the information to Argentina would put them personally at risk, the settlors requested the FTA to issue a decision, subject to appeal, opposing the transmission.

The Federal Supreme Court upheld the FTA’s decision, confirming that only a violation of public order could justify withholding information and that no such violation existed in this case.

This alignment with international standards reflects Switzerland’s firm commitment to global compliance. Trustees, protectors, and advisors should expect that trust information can be shared automatically with other jurisdictions.

Jurisdiction and Applicable Law – Foreign Trust

In LF160056-03 (25 November 2016), the High Court of Zurich affirmed that Swiss courts may exercise jurisdiction in trust disputes even if the trust itself is governed by foreign law, provided the trustee is domiciled in Switzerland. In this case, the Zurich court accepted jurisdiction but applied Guernsey law as the governing law of the trust.

This distinction is important: the competent forum may be in Switzerland, but the substantive law applied remains that of the jurisdiction chosen for the trust. The ruling ensures that beneficiaries and other interested parties have access to a Swiss forum for dispute resolution, while also underscoring the responsibilities of trustees operating from Switzerland.

Conclusion

Taken together, these decisions mark the steady consolidation of Switzerland’s approach to trusts. While remaining creatures of foreign law, trusts have been consistently upheld and integrated within the Swiss legal order in areas spanning succession, criminal and matrimonial litigation, taxation, and jurisdiction.

The direction is clear: Switzerland continues to reinforce its position as a stable, internationally minded jurisdiction, capable of providing a secure environment for the administration of trusts in a cross-border context.

It should be remembered that trusts remain governed by foreign law, as Switzerland does not have its own substantive trust legislation. Careful structuring and administration are therefore essential, and it is strongly recommended to seek advice from professionals with the necessary expertise.

If you would like to know more about Swiss Trusts, or if you have any questions about how we can support you, please contact Christine Breitler at: christine.breitler@dixcart.com or advice.switzerland@dixcart.com.

Significant changes have been introduced to the Non-Habitual Residents Regime (NHR) in Portugal.

The “Old” NHR Regime

For individuals who successfully applied for the NHR regime by the end of 2023 (or met specific transitional criteria), the benefits have been grandfathered and continue for their 10-year period from the time of tax residency.

Key Aspects of Capital Gains under the Old NHR

The “New” NHR Regime (NHR 2.0 / IFICI)

The “new” NHR regime, officially known as the “Incentive to Scientific Research and Innovation” (IFICI), came into effect on 1 January 2024. It is considerably more restrictive than its predecessor, focusing on attracting highly qualified professionals in specific scientific, research, and innovation activities. Details of the registration and taxation are available – with more details on the capital gain consequences below.

Key Aspects of Capital Gains under the New NHR

Comparison of both Regimes

The below table summarises some key differences between the old and new regime.

Feature	Old NHR Regime	New NHR Regime (NHR 2.0)
Eligibility	Broadly available to new tax residents.	Restricted to specific highly skilled professions in science, research, and innovation.
Foreign Capital Gains	Conditional Exemption: Exempt only if the gains could be taxed in the source country under a DTA. This often-meant gains from stocks/bonds were still taxed in Portugal.	Explicit Exemption: Generally, exempt from Portuguese tax, simplifying the rules for those who qualify.
Portuguese Capital Gains	Generally taxed at a flat 28% (securities) or progressive rates (real estate or securities held less than 365 days) – treatment remains the same for both regimes.

Important Considerations for both Regimes

• Double Taxation Agreements (DTAs): Portugal has an extensive network of DTAs, which are crucial in determining taxing rights and avoiding double taxation. The specific DTA between Portugal and the source country of the capital gain will always take precedence.
• “Blacklisted” Jurisdictions: Capital gains (and other income) from jurisdictions considered “tax havens” by Portugal are often subject to a higher tax rate (e.g., 35%) and may not benefit from NHR exemptions.
• Crypto Assets: Portugal introduced specific rules for crypto assets in 2023. Gains from crypto assets held for less than 365 days are taxed at a flat rate of 28%. Gains from crypto assets held for 365 days or more or under the new NHR regime are exempt. See here for more information.

Contact Us

For more information, please contact Dixcart Portugal: advice.portugal@dixcart.com.

For Portuguese taxpayers, royalty income is generally treated as part of their normal taxable income and is subject to the standard corporate income tax (CIT) rate. Any withholding tax (WHT) paid on this income is considered a pre-payment toward the final CIT liability. If the WHT exceeds the final tax due, the difference is refundable or deductible in the following 5 years, even if no CIT is ultimately owed, particularly in the case of domestic royalty income.

However, certain royalty income can benefit from Portugal’s “patent box” regime, which is a key incentive for innovation and intellectual property (IP) development. This regime is designed in line with the BEPS Action 5 (Authorized Nexus Approach) to ensure that tax benefits are linked to actual economic activity.

Key Features of the Portuguese Patent Box Regime

The regime offers an 85% tax exemption on income derived from the use or exploitation of various IP rights, including:

• Copyrights from computer programmes.
• Registered patents, designs, and industrial models.

This effectively reduces the tax burden on qualifying royalty income significantly.

Madeira International Business Centre and Portugal’s Patent Box Regime

By establishing a company within the Madeira International Business Centre (MIBC), a taxpayer can combine the benefits of both regimes. The Madeira IBC offers a compelling legal framework for international businesses wishing to position themselves within the EU zone.

MIBC companies, approved by the EU and in line with the OECD and BEPS international standards, allows for a 5% corporate tax, provided the substance criteria are met. Companies may enhance both the patent box and MIBC regimes together to benefit from the respective activity undertaken.

This may entail the corporate taxation of 5% reduced with the application of the patent box’s 85% exemption on royalty income.

Read here for more information on the Madeira International Business Centre.

In essence, Portugal’s patent box regime provides an incentive for businesses to engage in R&D and develop intellectual property. The regime encourages innovation and helps to position Portugal as a competitive hub for IP-intensive activities. Contact Dixcart Portugal for more information (advice.portugal@dixcart.com).