Alternative investments

Art. Luxury watches. Whisky casks. Classic cars. Jewellery. Rare wines. For many wealthy people, these real assets make up a substantial part of their wealth, often without any clear idea of the specific risks.

Alternative investments have some unique features that make them both attractive and risky: they are hard to value, not standardised, and often hard to transfer. That is exactly what draws the state's attention to them, and what makes them a problem in estate planning.

The risks in detail

Valuation problems and inheritance tax

A painting you bought for EUR 50,000 thirty years ago may be worth EUR 2 million today. For inheritance tax it counts at what it is worth on the day you die, and the tax is charged on that value. Your heirs have to pay the tax even if they do not want to sell the painting. That often ends in the forced sale of family heirlooms.

Whisky casks, watch collections and classic cars have the same problem: their value is hard to establish, and when in doubt, the tax authority will put it too high. Without planning, the inheritance tax can exceed what the collection is worth to the family.

Seizure and state reach

In the event of a wealth levy or a one-off levy, physical real assets are particularly at risk. The state can introduce a duty to declare an inventory, charge a levy on art ownership, or in an extreme case order a seizure. Anyone who keeps their collection at home is fully exposed to the law of their own country.

Criminal risks are real too: anyone known to be wealthy and to own a valuable watch collection is a target for burglars and, in extreme cases, for targeted crime. Discreet storage is not a luxury but a necessity.

Storage and insurance

Valuable works of art and collector's pieces need special storage conditions: temperature, humidity, security. Many insurers cover art only up to certain limits, or demand extensive documentation. Anyone who does not insure and store a collection properly risks losing it entirely.

Storage outside the EU, in free ports such as Geneva, Singapore or Delaware, offers considerable advantages: no VAT on purchases and sales within the free port, no reporting duties towards the authorities at home, and protection against state reach.

Anonymity and proof of ownership

Who owns the painting? Who owns the whisky cask? Without a clear ownership structure, an estate brings disputes, tax problems and legal uncertainty. At the same time, too much transparency is a risk: anyone publicly known to own valuable art becomes a target.

What you can do

Storage in free ports

Free ports such as the Geneva Freeport, the Singapore Freeport or the Delaware Freeport offer ideal conditions for storing valuable real assets: no VAT, no customs duties, professional storage, and protection against state reach. The art in the Geneva Freeport is estimated to be worth 100 billion dollars, for good reason.

Documentation and provenance

For works of art, provenance, the history of where a piece has been, is decisive for its value and for legal certainty. We help you put together complete documentation of your collection and keep it in a secure structure.

Whisky and wine as investments

Whisky casks and rare wines have become serious asset classes in recent years. A cask of Scotch whisky from a renowned distillery can double or triple in value within ten years. We advise you on structuring such investments, from storage in Scotland to the most tax-efficient way of holding them.