Why hold money in Switzerland?
- Geographic diversification: part of the family's assets held outside the local banking system.
- Stability: Switzerland is known for a stable legal and financial system, supervised by the financial regulator FINMA.
- Segregation of assets: clients' securities are held separately from the bank's own assets.
- Accessibility: the account is opened and run digitally, with no need to travel to Switzerland.
How it works
- Introduction: an initial conversation and a referral to the portfolio manager, who assesses suitability.
- An account in your name: at the Swiss bank, opened digitally with identity documents and a source-of-funds declaration.
- Trading-only power of attorney: the portfolio manager can place trades but cannot withdraw or transfer money. The money stays yours.
- Managed by the portfolio manager: according to a model portfolio of diversified ETFs, in line with your risk profile.
- Annual reporting: an orderly statement for your accountant, for your Israeli tax filing.
European ETFs (UCITS)
The portfolio manager's model portfolios are built from Irish-domiciled UCITS ETFs rather than US funds. The reason: holding US assets directly may expose the heirs to US estate tax, even if the investor is not a US citizen. UCITS funds provide exposure to the same markets without that exposure.
In addition, the money is held in securities rather than cash, because Swiss deposit protection is capped at CHF 100,000, while securities belong to the client even if the bank runs into difficulty.
Full transparency with the tax authorities
Nothing here is "under the radar". Switzerland and Israel exchange financial information automatically under the CRS standard, and the account is fully reported. An annual statement makes your accountant's filing straightforward, and we can accompany you in dealing with them as needed.
Who it suits
- Those who wish to hold part of their savings outside Israel, for the long term.
- Those who prefer professional management to trading on their own.
- Those for whom it matters that everything is reported, lawful and orderly, including planning for the next generation.
Frequently asked questions
Is it legal for an Israeli to hold a bank account in Switzerland?
Yes. An Israeli resident may hold an account abroad, provided the account and its income are reported to the Israel Tax Authority. Information on the account is also sent to Israel automatically under the CRS standard.
In whose name is the account held?
The account is opened in your name only. The portfolio manager receives a limited power of attorney for trading only, and cannot withdraw or transfer money.
Is the money protected?
Cash deposits in Switzerland are protected up to CHF 100,000 per bank. Securities are held separately from the bank's own assets and belong to the client even if the bank becomes insolvent. This is why it is customary to hold the money in securities rather than cash.
Why European ETFs rather than US ones?
Holding US securities directly may expose the heirs to US estate tax. Irish-domiciled UCITS funds give exposure to the same markets without that exposure.
What happens to the account on death?
The heirs submit to the bank a probate or succession order, the death certificate and identity documents, and the account is transferred to them. We accompany the process.
What is needed to begin?
An introductory conversation, then a digital account opening with identity documents and a source-of-funds declaration. The whole process is done from Israel.
The information on this page is general only and does not constitute investment advice, investment marketing, tax advice or legal advice, and is no substitute for advice that takes each person's circumstances and needs into account. Portfolio management is carried out by portfolio managers licensed by the Israel Securities Authority. The client chooses the manager from several firms, and the chosen firm's licence details are provided before engagement. Investing in securities involves risk, including the loss of principal, and past performance does not guarantee future returns. MAXA and Max Tribel do not hold an investment advice, investment marketing or portfolio management licence, and make no investment decisions and carry out no transactions in the account. Suitability, investment and management are the portfolio manager's alone. MAXA is not a bank and does not represent any foreign bank.