Resources & Simulations

International Wealth Management: The Challenges of Private International Law

In the context of international wealth management, it is essential to consider a wide range of legal issues, particularly in tax and civil matters, and more broadly in private international law.

This discipline specifically aims to resolve difficulties arising from the coexistence of several legal systems that may apply to a single situation involving a foreign element (for example: residence in one state, assets in another, different nationality, heirs spread across several countries, etc.).

On this page, we present some key topics in private international law, and we also provide you with a loan amortization schedule simulation for a bank loan.

For any information regarding international tax treaties, it is recommended to refer to the official website of the French tax administration, accessible at impots.gouv.fr

Documents to download

Additionally, you will find below some reference documents for download:

  1. Rome I Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I),
  2. EU Succession Regulation (EU) No 650/2012 of the European Parliament and of the Council of 4 July 2012 on jurisdiction, applicable law, recognition and enforcement of decisions in matters of succession and on the creation of a European Certificate of Succession (Succession Regulation)
  3. Switzerland — Federal Act on Private International Law (PILA)
  4. Council Regulation (EU) 2016/1103 of 24 June 2016 implementing enhanced cooperation in the area of jurisdiction, applicable law and the recognition and enforcement of decisions in matters of matrimonial property regimes

Documents in English:

“This translation is provided for information purposes only and has no legal force”

Which Law Applies in a Multi-State Situation?

When a situation involves several countries, the central question is: which law applies?
To answer this, each State relies on a conflict-of-laws rule (CR).
Such a rule does not decide the merits of the dispute, but rather designates the applicable law based on a connecting factor.

Examples of Common Connecting Factors

  • a person’s habitual residence;
  • nationality;
  • the location of an asset, in particular real estate;
  • the place of conclusion or performance of a contract.

Conflict of Connecting Factors

Even where the States concerned classify the matter within the same legal category (e.g. succession, matrimonial property regime, contract), their conflict-of-laws rules may rely on different connecting factors.

👉 Result: these rules may lead to the designation of different applicable laws, creating legal uncertainty and potentially a risk of litigation.

1) Positive Conflict

A positive conflict arises when each conflict-of-laws rule assigns jurisdiction to its own domestic law.

In Practice

This is no longer merely a conflict between two substantive laws, but a conflict between two conflict rules: each State asserts that its law applies.

Possible Solutions

Legal Solution: Harmonisation of Conflict-of-Laws Rules
Example: the EU Succession Regulation has significantly reduced such conflicts within the European Union by unifying the method for determining the applicable law.

Pragmatic Solution: Application of the Lex Fori Rule
In the absence of international coordination, courts generally apply the conflict-of-laws rule of their own legal system(lex fori).

2) Negative Conflict

A negative conflict arises when each conflict-of-laws rule refers jurisdiction to the law of the other State.

In Other Words

No legal system considers itself applicable.
Each refers to the other, resulting in a legal deadlock.

The Key Question: Renvoi

In such cases, it must be determined whether the legal system accepts the mechanism of renvoi.
Renvoi consists of accepting that the designated foreign law — or more precisely its private international law — refers the matter to another law.

 

Applicable Legal Regime According to the Date of Marriage

  • Marriages celebrated before September 1, 1992: Common Law
  • Marriages celebrated between 1992 and 2019: Hague Convention
  • Marriages celebrated after 2019: European Union Regulation

Marriages celebrated from January 29, 2019 onwards: application of Regulation (EU) 2016/1103 in Member States participating in enhanced cooperation.

The following 18 States apply the regulation on matrimonial property regimes:

  • Germany
  • Austria
  • Belgium
  • Bulgaria
  • Cyprus
  • Croatia
  • Spain
  • Finland
  • France
  • Greece
  • Italy
  • Luxembourg
  • Malta
  • Netherlands
  • Portugal
  • Czech Republic
  • Slovenia
  • Sweden

👉 These States uniformly apply the rules of jurisdiction, applicable law, and recognition of decisions in matters of matrimonial property regimes.

The other European Union States** do not participate** in this regulation, including:

  • Denmark (opt-out in judicial cooperation)
  • Ireland
  • Hungary
  • Poland
  • Romania
  • Slovakia
  • Estonia
  • Latvia
  • Lithuania

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