Inheritance tax in Switzerland

There is no federal inheritance tax in Switzerland. Inheritance tax is set and collected entirely by the cantons, which means your liability depends almost entirely on where the deceased was last domiciled and where any property is located. Before reading further, run through these four checks: the deceased’s last canton of domicile, the location of any immovable property, the civil status of the deceased (married, registered partner, or neither), and the relationship between the deceased and each beneficiary.

Quick outcomes by relationship:

Spouses and registered partners are exempt from inheritance tax in every Swiss canton.
Direct descendants (children, grandchildren) are exempt in most cantons, though exceptions exist.
Cantons such as Schwyz and Obwalden levy no inheritance or gift tax at all, for any heir.
Siblings, unrelated heirs, and unregistered life partners can face substantial progressive rates, reaching as high as 49.5% in Basel-Stadt for non-relatives.

Key takeaways

Switzerland has no federal inheritance tax; the canton of the deceased’s last domicile governs movable assets, and immovable property is always taxed where it is located.

Point	Details
Canton determines liability	Check the deceased’s last domicile first; this canton governs all movable assets.
Spouses and children usually exempt	Spouses and registered partners are exempt in all cantons; direct descendants are exempt in most.
Property taxed where located	A holiday property in Vaud is taxed under Vaud law, regardless of where the deceased lived.
Unregistered partners face high rates	Without formal registration, a life partner may be taxed as an unrelated heir, facing the highest rate bands.
Marmot Finance coordinates the process	Marmot Finance offers succession health-checks and coordinates with tax lawyers and valuation specialists for families in Switzerland.

What is inheritance tax in Switzerland, and who sets the rules?

Inheritance tax (Erbschaftssteuer) is a tax on assets received by a beneficiary following a death. It is distinct from an estate tax (Nachlasssteuer), which is levied on the total estate before distribution. Most Swiss cantons apply the Erbanfallsteuer model, assessing each heir’s individual share separately. Solothurn and Graubünden are notable exceptions, still applying an estate-level Nachlasssteuer to the whole estate before it is divided.

The Swiss federal Civil Code governs succession rights — who inherits and in what proportions — but it does not impose any tax. Tax is entirely a cantonal matter. The federal portal ch.ch confirms that inheritance tax is handled at cantonal level, and it directs families to their relevant cantonal tax office for binding rules and tables.

Competence is assigned by two principles. For movable assets (bank accounts, securities, personal property), the applicable canton is the one where the deceased was last domiciled. For immovable property (land, buildings), tax is due in the canton where the property is physically located, regardless of where the deceased lived.

Pro Tip: Many cantons apply a lookback period for lifetime gifts, meaning assets transferred before death can be pulled back into the taxable estate. The period varies by canton, so check the specific rules before making large gifts close to the end of life.

How is inheritance tax actually calculated?

The taxable base for Erbanfallsteuer is the individual heir’s net share of the estate after deduction of debts, funeral costs, and any applicable allowances. For Nachlasssteuer cantons (Solothurn, Graubünden), the base is the total net estate.

Common factors that affect the calculation:

Relationship degree: closer relatives receive larger allowances and lower rates.
Tax-free allowance: each canton sets its own threshold below which no tax is due.
Progressive rate scale: rates increase as the taxable share grows, and the scale differs by canton and by relationship category.

Asset valuation follows specific rules. Real estate is valued at the canton of location’s official assessed value (Verkehrswert or Steuerwert, depending on the canton). Bank accounts and securities are taken at market value on the date of death. Pension capital from the second pillar and pillar 3a, along with certain linked life insurance policies, passes directly to designated beneficiaries under a statutory hierarchy and is often taxed separately or outside the ordinary estate, which can materially affect the overall tax outcome.

Indicative worked example (illustrative figures only):

Deceased domiciled in Zürich; estate value CHF 800,000; two heirs: one adult child, one unrelated friend.
Adult child’s share: CHF 400,000. Zürich exempts direct descendants. Tax due: CHF 0.
Unrelated friend’s share: CHF 400,000. After a modest allowance, Zürich applies a progressive rate for unrelated heirs. At indicative rates, the tax liability on this share could reach CHF 80,000–100,000 or more, depending on the exact rate schedule in force.
The friend’s net receipt is therefore substantially less than the nominal CHF 400,000.

These figures are illustrative. Actual liability depends on the canton’s current rate tables, the precise allowances, and the valuation of specific assets.

Pro Tip: Business interests and minority shareholdings are among the most contested assets in Swiss estate valuations. Cantonal tax offices may apply their own valuation methodology, which can differ significantly from a commercial valuation. Commission an independent professional valuation before filing to avoid disputes.

How do inheritance tax rules differ across Swiss cantons?

The canton of the deceased’s last domicile governs movable assets; immovable property is always taxed where it sits. KPMG and other advisers note that the cantonal differences are substantial enough to function as genuine planning variables, provided any domicile change is real and well-documented.

The table below gives an overview of selected cantons. Rates for unrelated heirs are indicative; consult the relevant cantonal tax office for binding figures.

Canton	Spouse / children exempt?	Top rate for unrelated heirs (indicative)	Notable rules
Schwyz	Yes (no tax at all)	0%	No inheritance or gift tax for any heir
Obwalden	Yes (no tax at all)	0%	No inheritance or gift tax for any heir
Zug	Yes	Low to moderate	Children exempt; low rates for distant heirs
Zürich	Yes	Moderate to high	Progressive scale; business valuation scrutiny
Geneva	Yes	High	Significant rates for distant heirs; gift tax applies
Vaud	Yes	High	Progressive rates; real estate valued at market
Neuchâtel	No (preferential 3–5%)	High	Exception: even spouses/children taxed at 3–5%
Basel-Stadt	Yes	Up to 49.5%	Among the highest rates for non-relatives in Switzerland

Indicative tax on CHF 500,000 to an unrelated heir (illustrative only):

Canton	Approximate tax (indicative)
Schwyz / Obwalden	CHF 0
Zürich	CHF 80,000–100,000

These figures are illustrative estimates based on published cantonal rate schedules. Actual liability will vary with allowances, asset type, and the canton’s current tables. Always verify with the cantonal tax office.

Planning implications worth noting: a genuine move to Schwyz, Obwalden, or Zug can eliminate or substantially reduce inheritance tax on movable assets. The move must represent the true centre of vital interests, not a nominal registration. Timing also matters; most advisers recommend establishing domicile well in advance of any anticipated estate event, and several cantons apply lookback rules that can claw back tax advantages if the move is deemed insufficiently established.

What happens when an estate includes property in more than one canton?

The territoriality principle is clear: movable assets follow the deceased’s last domicile, and immovable property is taxed in the canton where it is located. When an estate spans multiple cantons, both (or all) relevant cantonal tax offices have jurisdiction over their respective assets.

Steps to take for a multi-canton estate:

Identify every piece of immovable property and note its canton of location.
Notify each relevant cantonal tax office promptly after the death is registered.
Obtain separate valuations for each property, using the methodology that the relevant canton requires.
Coordinate the filing timelines, as deadlines differ by canton.
Watch for potential double-assessment on assets that straddle categories (for example, a business with premises in one canton and the owner domiciled in another).

A practical example: a person domiciled in Zürich at the time of death, with a holiday property in Vaud. Zürich taxes all movable assets (bank accounts, securities, personal effects) under Zürich law. Vaud taxes the holiday property under Vaud law, at Vaud’s rates and with Vaud’s allowances. An unrelated heir could therefore face two separate tax assessments, each calculated independently. The canton of the deceased’s last domicile does not override the property canton’s jurisdiction, and there is no automatic credit mechanism between cantons for inheritance tax purposes.

Filing, deadlines, and the practical administration of an estate

Swiss inheritance tax is self-declared in most cantons. The heirs (or the estate’s representative) are responsible for notifying the cantonal tax office and submitting the required documentation. Deadlines vary, but most cantons expect an initial notification within a few months of the death, with a full inventory and valuation to follow.

Documents typically required by cantonal tax offices:

Death certificate (Sterbeurkunde).
Will or inheritance contract (Testament or Erbvertrag), if one exists.
Complete estate inventory listing all assets and liabilities.
Professional valuations for real estate, business interests, and non-standard assets.
Bank statements and securities holdings as at the date of death.
Evidence of any lifetime gifts made within the canton’s lookback period.

The heir responsible for filing is usually the executor (Willensvollstrecker) if one is named, or the heirs jointly if not. Payment is typically due within a specified period after the tax assessment is issued, which can be several months after filing. Interest on late payment applies in most cantons.

Pro Tip: Keep original receipts, contemporaneous valuations, and all correspondence with the cantonal tax office in a single, organised file. Disputes about asset values are common, and the burden of proof generally rests with the heirs. A well-documented file reduces both the risk of a higher assessment and the cost of any professional representation needed to challenge one.

Practical strategies for reducing inheritance tax, and pitfalls to avoid

The cantonal system creates genuine planning opportunities, but it also creates traps for families who act without proper advice. The most effective strategies are well-established; the most common mistakes are equally predictable.

Reputable planning options include:

Genuine change of domicile to a low-tax canton (Schwyz, Obwalden, Zug) well before death, establishing a real centre of vital interests.
Lifetime gifts, structured to fall outside the canton’s lookback period and documented carefully.
Pension and insurance beneficiary designations, reviewed regularly to ensure capital passes to the intended recipients outside the ordinary estate.
Charitable transfers, which may qualify for deductions or exemptions depending on the canton.
Business succession planning, using structured transfers or holding arrangements that qualify for preferential treatment where available.

Common pitfalls:

Artificial or nominal domicile changes that do not reflect genuine residence; cantonal authorities scrutinise these closely.
Treating an unregistered life partner as if they had the same status as a registered partner, without verifying the canton’s specific recognition criteria.
Overlooking forced heirship rules under the Civil Code, which limit how freely assets can be distributed regardless of tax planning.
Failing to account for cross-border treaty issues when heirs live abroad or when foreign assets are involved.

For families with complex or multi-jurisdictional estates, the interaction between Swiss cantonal rules and foreign inheritance or estate taxes adds another layer of complexity. Switzerland has a limited number of double-taxation treaties covering inheritance, and the absence of a treaty does not mean double taxation is automatically avoided. A qualified Swiss tax lawyer should be involved wherever foreign assets or non-resident heirs are part of the picture.

Pro Tip: A practical pre-action checklist: first, confirm the deceased’s last domicile and identify all immovable property locations. Second, establish the civil status and relationship of each beneficiary. Third, obtain professional valuations for non-standard assets. Fourth, engage a tax lawyer if the estate is cross-cantonal, cross-border, or involves business interests. A wealth manager can coordinate these steps and ensure nothing is missed.

For further reading on estate planning essentials in Switzerland, including how to structure the process for affluent families, Marmot Finance has published practical guidance that complements the tax-focused analysis here.

Why families should not wait to review their succession position

Most families I speak with assume that because spouses and children are usually exempt, inheritance tax is not their concern. That assumption holds for straightforward estates in the right cantons, but it breaks down quickly when there is a holiday property in a different canton, an unregistered partner, a business interest, or a beneficiary living abroad.

The cantonal system rewards families who plan ahead and penalises those who do not. A genuine move to Schwyz or Zug, made years before it is needed, can eliminate inheritance tax on movable assets entirely. A beneficiary designation on a pension contract, reviewed and updated, can keep significant capital outside the taxable estate. These are not aggressive tax schemes; they are straightforward steps that any well-advised family should consider.

What concerns me more than the tax itself is the documentation gap. Families with unregistered partners, blended families, or assets in multiple cantons often discover the complexity only after a death, when options are limited and timelines are tight. A succession health-check, done now, costs a fraction of what a disputed estate assessment can cost later.

Marmot Finance, as a FINMA-accredited wealth manager focused on women and families in Switzerland, is well-placed to coordinate that review, working alongside tax lawyers and valuation specialists to give families a clear picture of their position before it becomes urgent.

How Marmot Finance supports inheritance tax planning

For families who want clarity on their succession position without having to coordinate multiple advisers independently, Marmot Finance’s wealth management service brings together the key elements in one place. The process starts with a succession health-check: a structured review of domicile, asset locations, civil status, beneficiary designations, and cantonal tax exposure. From there, Marmot coordinates with specialist tax lawyers for legal steps and with valuation professionals where business interests or real estate require independent assessment.

Marmot Finance is FINMA-accredited and works exclusively with women, families, and family offices in Switzerland and Europe, managing CHF, EUR, and USD accounts. The focus is on practical, personalised guidance rather than generic advice.

To request a succession health-check or to discuss your family’s position, contact Marmot Finance directly.

This article is general information, not legal or tax advice. Inheritance tax rules vary by canton and individual circumstance. Confirm your specific position with the relevant cantonal tax office or a qualified Swiss tax lawyer.

Useful sources and next steps

For definitive rules and current rate tables, consult the following authoritative sources:

For a practical introduction to estate planning for families, including how to structure family conversations and document decisions, the partner resource from AIBarra CPA provides a useful complement to the Swiss-specific guidance above.

For final legal certainty on any specific estate, consult a qualified Swiss tax lawyer or contact the cantonal tax office that will administer the estate directly. Public summaries, including this article, are a reliable orientation tool, but the binding rules are those published by the relevant cantonal authority.