Switzerland Inheritance & Gift Tax Guide 2026

Overview — Cantonal Competence

• No federal inheritance/gift tax: Switzerland abolished its federal inheritance tax in 1958. Since then, inheritance and gift tax are exclusively within cantonal competence. There is no uniform national rate, threshold, or exemption. Each of the 26 cantons has its own inheritance and gift tax law (Erbschafts- und Schenkungssteuer / impôt sur les successions et les donations).
• Harmonisation attempts: Several popular initiatives have attempted to introduce a federal inheritance tax (e.g., a 20% tax on estates above CHF 2 million to fund AHV), all rejected by Swiss voters (most recently in 2015). An initiative to harmonise the cantonal inheritance tax laws also failed. As a result, the cantonal variation is likely to persist.
• Taxable event: Inheritance tax is triggered upon death of the decedent (Erblasser) for assets passing to heirs (by law or by will). Gift tax is triggered upon inter vivos gifts (Schenkung) exceeding certain thresholds. Some cantons require the recipient (donee) to file a gift tax return for significant gifts. The tax is generally payable by the heir or donee, not the estate or donor.

Spouses and Direct Descendants — Mostly Exempt

• Spouses and registered partners: All 26 cantons fully exempt surviving spouses and registered partners from inheritance tax. There is no cap or limit on the exemption — a spouse can inherit CHF 100 million free of inheritance tax. The exemption applies to both inheritance upon death and gifts between spouses during their lifetime.
• Direct descendants (children, grandchildren): Most cantons (including Zurich, Zug, Bern, Basel-Stadt, Basel-Land, Lucerne, St. Gallen, Aargau, Schwyz, Ticino, Vaud, Neuchâtel, Jura, Fribourg, Solothurn, Thurgau, Graubünden) fully exempt direct descendants from inheritance and gift tax. Some cantons impose a very low rate on descendants (e.g., Geneva: 0.2–0.6% for descendants after a tax-free allowance of CHF 50,000–100,000; Valais: 1–2% for descendants above a threshold; Appenzell Innerrhoden: 0.5–2%).
• Tax-free allowances for descendants: In cantons that tax descendants, there is usually a generous tax-free allowance (Freibetrag). Geneva allows CHF 50,000 per child (CHF 100,000 below age 18) before inheritance tax applies, with rates of 0.2–0.6% on the excess. Valais allows approximately CHF 25,000 per child with rates of 1–2%. The practical impact is that even in cantons that tax descendants, the effective rate on a typical inheritance is very low.

Other Heirs — Siblings, Nieces/Nephews, Unrelated Persons

• Siblings and nieces/nephews: Tax rates for siblings vary significantly by canton. In Zurich, siblings pay 6–24% (progressive) on inherited amounts above CHF 100,000. In Zug, siblings pay 20–40%. In Bern, siblings pay 5–15%. In Vaud, siblings pay 6–12%. In Geneva, siblings pay 6–12% (with a CHF 15,000 allowance). The rate depends on the relationship and the amount inherited.
• Unrelated persons (non-family): Unrelated heirs (friends, partners who are not registered, charities, other non-family) face the highest rates. Zurich: 18–36% (progressive) above CHF 100,000. Zug: 20–40%. Bern: 10–20%. Vaud: 15–25%. Geneva: 12–18%. Basel-Stadt: 20–30%. The progressive rate schedule means larger inheritances to non-family attract higher rates — in Zug, an inheritance of CHF 5 million to an unrelated person could result in tax of approximately CHF 1.5–2 million.
• Reduced rates for close relatives: Parents and grandparents generally pay lower rates than siblings. In Zurich, parents pay 2–8%. In Zug, parents pay 6–12%. In Geneva, parents pay 2–6%. The key principle: the closer the family relationship, the lower the rate. Unrelated persons face the highest rates as a policy to encourage wealth to stay within families.

Rates by Canton (Examples)

• Zurich (ZH): Direct descendants and spouse: 0%. Siblings: 6–24% (progressive, CHF 100k allowance). Unrelated: 18–36% (progressive, CHF 100k allowance). Gift tax follows the same rates. Tax-free gifts to descendants: unlimited. Annual gift exemption for others: CHF 10,000 per donor per year.
• Zug (ZG): Direct descendants and spouse: 0%. Siblings: 20–40% (progressive). Unrelated: 20–40% (same progressive scale for all non-descendants). Gift tax: same rates. Annual gift exemption: CHF 10,000 per recipient per year.
• Geneva (GE): Descendants: 0.2–0.6% (not fully exempt — low rates after CHF 50k allowance). Spouse: 0%. Siblings: 6–12% (CHF 15k allowance). Unrelated: 12–18% (CHF 15k allowance). Geneva still taxes descendants at very low effective rates.
• Bern (BE): Direct descendants and spouse: 0%. Parents: 2–5%. Siblings: 5–15%. Unrelated: 10–20%. Gift tax: same rates. Annual gift exemption: CHF 10,000.
• Vaud (VD): Direct descendants and spouse: 0%. Siblings: 6–12%. Parents: 3–6%. Unrelated: 14–25%. Annual gift exemption: CHF 10,000 per recipient.
• Basel-Stadt (BS): Direct descendants and spouse: 0%. Siblings: 3–12%. Unrelated: 20–30%. Annual gift exemption: CHF 10,000.

Gift Tax Rules

• Mirroring inheritance tax: In most cantons, gift tax rates and exemptions are identical to inheritance tax rates and exemptions. A gift to a descendant is tax-free in most cantons (same as inheritance). A gift to an unrelated person is taxed at the same rates as an inheritance to an unrelated person.
• Annual exemption: Many cantons provide an annual gift tax exemption for gifts to non-descendants. Typical exemption: CHF 10,000 per donor per recipient per year (in Zurich, Zug, Bern, Basel-Stadt, Vaud, and others). The exemption applies to cash gifts, securities, real estate (partial), and other assets. Gifts below the exemption amount do not need to be declared.
• Real estate gifts (Grundstückschenkung): Gifts of real estate are subject to special rules. The gift tax is based on the market value of the property minus any mortgage assumed by the donee. Additionally, real estate transfer tax (Handänderungssteuer) may apply — typically 1–3% of the property value (though exempt for descendants in many cantons). The recipient's acquisition cost for future property gains tax is the market value at the time of the gift (step-up).
• Filing requirements: In most cantons, gifts to descendants are not reportable (since they are tax-free). Gifts to non-descendants above the annual exemption must be reported on a gift tax return (Schenkungssteuererklärung). The deadline varies by canton (typically 30–90 days from the gift). Late reporting can result in penalties.

Cross-Border Estate Issues

• Swiss residents with foreign assets: Swiss residents are subject to cantonal inheritance/gift tax on their worldwide assets, unless a double tax treaty provides otherwise. Most Swiss treaties allocate inheritance tax on real estate to the country where the property is located (situs principle). Movable assets (shares, bank accounts) are generally taxable in the country of residence of the decedent. Switzerland has inheritance tax treaties with approximately 15 countries (including Germany, France, UK, US, Austria, Sweden, Denmark, Netherlands).
• Foreign residents with Swiss assets: Non-residents holding Swiss assets (especially Swiss real estate) are subject to cantonal inheritance tax on those Swiss assets. The rate depends on the relationship between the decedent and the heir and the canton where the property is located. Some cantons impose high rates (up to 40%) if the heir is unrelated to the decedent.
• US citizens and green card holders: US citizens residing in Switzerland face US estate tax (up to 40% above approximately USD 13 million exemption in 2026). The US-Switzerland estate tax treaty provides credits to avoid double taxation. US citizens owning Swiss assets should plan carefully — the Swiss inheritance tax exemption for descendants does not eliminate US estate tax liability. The US gift tax annual exclusion (approximately USD 18,000 per donee) also applies alongside Swiss gift tax rules.

Tax Planning — 7-Year Survival Period for Gifts

• Gift planning for descendants: Since most cantons exempt gifts to descendants from gift tax, the simplest strategy is to give assets to children and grandchildren during your lifetime. There is no limit on the amount that can be given tax-free to descendants in most cantons. The donee receives the assets with a stepped-up cost basis for future capital gains purposes.
• 7-year lookback rule (in some cantons): Some cantons (e.g., Zurich, Zug) apply a 7-year lookback rule for gifts — if the donor dies within 7 years of making a gift, the gift is added back to the estate for inheritance tax purposes (to prevent tax avoidance through lifetime gifts). Since descendants are exempt from inheritance tax in most cantons, the lookback rule is only relevant for gifts to non-descendants. For gifts to non-descendants, surviving 7 years eliminates the inheritance tax exposure on the gifted amount.
• Use of trusts and foundations: Switzerland recognises trusts and foundations for estate planning purposes. A Swiss-based trust or foundation can be used to hold assets for beneficiaries while potentially avoiding Swiss inheritance tax on the trust assets (if properly structured). Expert legal advice is essential, as the interaction between Swiss inheritance law, forced heirship rules, and trust structures is complex.
• Relocation to a low-inheritance-tax canton: Moving your residence to a canton with favourable inheritance tax rules (e.g., Zurich, Zug, Bern, Vaud — all 0% for descendants) can significantly reduce the inheritance tax burden on your estate. However, the residence must be genuine (primary residence, centre of living). The move must occur well before death — the last canton of residence (at the time of death) determines which canton's inheritance tax applies to movable assets.

FAQs

Is there a federal inheritance tax in Switzerland?

No. Switzerland has no federal inheritance or gift tax. These taxes are exclusively within cantonal competence. Each of the 26 cantons has its own law, rates, and exemptions. This means the inheritance tax burden depends entirely on the canton of residence of the decedent (for movable assets) and the location of the property (for real estate).

Do children pay inheritance tax in Switzerland?

In most cantons, children (direct descendants) are fully exempt from inheritance tax. In a few cantons (Geneva, Valais, Appenzell Innerrhoden), children pay a very low rate (0.2–2%) after a tax-free allowance. In practice, even in cantons that tax descendants, the effective tax on a typical inheritance is minimal.

What is the 7-year rule for gifts?

Some cantons (Zurich, Zug, and others) apply a 7-year lookback rule: if the donor dies within 7 years of making a gift, the gifted amount is added back to the estate for inheritance tax purposes. However, since descendants are exempt from inheritance tax in most cantons, the rule primarily affects gifts to non-descendants. If you give CHF 100,000 to a sibling and die within 7 years, the CHF 100,000 may be subject to inheritance tax in those cantons.

Do I pay gift tax if I give money to my Swiss partner?

If your partner is your registered spouse or registered partner, the gift is fully exempt in all cantons (unlimited amount). If your partner is unmarried and not a registered partner, the gift is subject to gift tax at the "unrelated persons" rate — which can be 18–40% depending on the canton. The annual exemption of CHF 10,000 applies. Consider registering your partnership to avoid gift tax on larger transfers.

How is foreign real estate treated in Swiss inheritance tax?

Under Swiss tax treaties, inheritance tax on real estate is generally allocated to the country where the property is located. Swiss cantons do not tax foreign real estate inherited by Swiss residents if the treaty so provides. For non-residents inheriting Swiss real estate, the cantonal inheritance tax applies based on the location of the property and the relationship between the decedent and the heir.

Disclaimer

This guide provides general information about Swiss inheritance and gift tax as of 2026. Tax laws, rates, exemptions, and rules are subject to change and vary significantly by canton. The examples provided are illustrative and may not reflect your specific circumstances. Always consult a qualified Swiss tax advisor or inheritance law specialist (Erbrechtsspezialist) for advice tailored to your situation. InvestmentKit does not provide tax or legal advice.