Switzerland: are charitable trusts an alternative to charitable foundations?

摘要

The article assesses how Switzerland's ratification of the Hague Convention on the Law Applicable to Trusts and on Their Recognition, and the entry into force of the new Swiss collision law provisions on trusts as of 1 July 2007, may possibly change the philanthropic landscape in Switzerland. Whether individuals resident in Switzerland, interested in setting up a charitable entity, will henceforth choose to set up charitable trusts instead of Swiss charitable foundations, depends not only on the advantages and disadvantages of these two different classes of charitable entities but even more so on the treatment of charitable trusts under the new Swiss collision law and on their taxation. Will charitable and purpose trusts henceforth be recognized in Switzerland and will they be granted the same tax exempt treatment in Switzerland like charitable foundations?