Inheritance and Estate Tax in Switzerland

Switzerland is one of the few major economies with no federal inheritance or gift tax. The authority to tax inheritances and gifts rests entirely with each of the 26 cantons, which design their own rates, exemptions, and thresholds independently. This creates a patchwork of 26 different regimes -- ranging from total exemption in two cantons to top rates exceeding 50% in others -- that the heirs of a Swiss resident must navigate based on where the deceased lived and where any real estate was located.

Does Switzerland have a federal inheritance tax?

No. Switzerland does not impose any federal inheritance or gift tax. The Swiss Federal Constitution has never granted federal authority to levy these taxes, and two direct-democracy attempts to change this have failed decisively: in June 2015, voters rejected a proposal to introduce a federal 20% inheritance tax on estates above CHF 2 million by a 71.7% majority, with all 26 cantons voting against it. On 30 November 2025, the Young Socialists (JUSO) initiative -- which would have imposed a 50% federal inheritance and gift tax on transfers above CHF 50 million per beneficiary, with proceeds earmarked for climate projects -- was rejected by 78.3% of voters, again with every canton voting no. The cantonal-only system therefore remains intact, and no federal-level inheritance tax legislation is expected in the near term. [1][2]

How does the cantonal system work, and which two cantons have no inheritance tax at all?

Except for the cantons of Schwyz (SZ) and Obwalden (OW), all 24 remaining cantons levy an inheritance tax. Most also levy a parallel gift tax: Lucerne (LU) is the notable exception -- it taxes inheritances but not gifts, though it does aggregate gifts made within five years before the donor's death into the inheritance base for rate purposes. Under Swiss constitutional law and Federal Supreme Court jurisprudence, double taxation between cantons is prohibited: movable assets (bank accounts, securities, personal property) are taxed exclusively by the canton of the deceased's last domicile, while immovable property (real estate) is taxed by the canton in which it is situated, regardless of where the owner was domiciled. [3]

Tax rates are relationship-based and progressive in most cantons. Closer heirs face lower multipliers; unrelated beneficiaries face the highest rates. The deceased's residency canton determines the tax framework for movable assets, but the law looks to where the beneficiary stands in the family tree -- not where the beneficiary lives -- to set the rate.

Are spouses and registered partners exempt?

Yes, in every canton. Transfers to a surviving spouse or registered civil partner are fully exempt from inheritance and gift tax in all 26 Swiss cantons, regardless of the size of the estate or the assets transferred. [3] This is one of the few uniform rules in the otherwise fragmented Swiss system. Unlike Germany (EUR 500,000 spousal allowance, with amounts above taxed at 7-30%) or France (no spouse inheritance tax but complex reserved-heir rules), Switzerland gives surviving spouses complete cantonal tax relief on every franc received.

Are children and direct descendants generally exempt?

In 23 of 26 cantons, direct descendants -- children, grandchildren, and further lineal heirs -- are fully exempt from inheritance and gift tax. Three cantons retain nominal taxes on inheritances to children, though all three provide substantial allowances that mean the practical burden is very low:

• Appenzell Innerrhoden (AI): applies a 1% rate on inheritances to direct descendants above CHF 300,000 per beneficiary.
• Neuchatel (NE): applies a 3% rate on inheritances to children.
• Vaud (VD): previously taxed children from CHF 250,000; as of 1 January 2025, the canton raised the threshold to CHF 1,000,000 per line of descent following a reform adopted by the Grand Council in December 2024. Amounts above that threshold are taxed on a progressive scale reaching a few percent. For gifts from parent to child, Vaud now allows CHF 300,000 per child per calendar year free of gift tax. [4]

A fourth canton sometimes cited -- Lucerne -- in practice does not impose gift tax at all and taxes inheritances to direct descendants only nominally in limited circumstances. For planning purposes, parents leaving estates to children face zero cantonal inheritance tax in the overwhelming majority of Swiss cantons.

What rates apply to more distant relatives and unrelated heirs?

The rate divergence between cantons is sharp for siblings, non-direct relatives, and unrelated beneficiaries. The table below shows illustrative effective rates on a CHF 500,000 inheritance share under 2025-2026 cantonal frameworks for a sibling beneficiary:

For unrelated beneficiaries (friends, domestic partners without civil registration, distant cousins), the gap widens further. Geneva and Vaud publish top rates exceeding 50% for the least-related heirs. Zurich applies up to 36% to unrelated parties on large transfers. By contrast, Schwyz applies zero for all relationships. [3][5]

Parents of a deceased adult child are a further variable: some cantons (Aargau) exempt them alongside spouses and descendants; others (Lucerne, Neuchatel) apply rates comparable to those for siblings.

How is real estate taxed when the deceased owned property in a different canton?

Swiss real estate is always taxed by the canton in which the property is situated -- not by the canton of the deceased's last domicile. This dual-situs rule is grounded in the Federal Supreme Court's double-taxation prohibition between cantons: the domicile canton taxes all movable assets, and the situs canton taxes immovable property. [3] The practical consequence is that an estate spanning property in multiple cantons may face different cantonal tax frameworks on each parcel, independent of where the owner lived.

For foreign-resident decedents (domiciled outside Switzerland at death), only Swiss-situated real estate triggers Swiss cantonal inheritance tax. Movable Swiss assets -- bank deposits, securities held at a Swiss bank, shareholdings -- of a foreign-domiciled decedent are generally outside the Swiss cantonal framework and taxed only by the decedent's country of residence under that country's domestic rules or applicable bilateral treaty. Switzerland maintains a small network of bilateral inheritance tax treaties (Germany, Netherlands, Austria, UK, United States, Sweden) but has no treaty with many common partner countries such as France or Italy. [3]

Amounts are quoted in Swiss francs (CHF). Exchange rates fluctuate; for current CHF/EUR or CHF/USD equivalents consult a financial institution.

What were the two rejected federal inheritance tax initiatives?

Twice in a decade, Swiss voters were asked to approve a federal-level inheritance and gift tax -- and twice they said no by large margins.

The first was the Swiss People's Initiative for a Federal Inheritance Tax (EVP initiative), voted on 14 June 2015. It proposed a 20% federal tax on estates and gifts above CHF 2 million, with revenues split between the federal pension fund (AVS/AHV) and the cantons. The proposal was rejected by 71.7% of voters, with all 26 cantons opposed. [1]

The second was the JUSO initiative, voted on 30 November 2025. It proposed a 50% federal inheritance and gift tax on transfers above CHF 50 million per beneficiary, with proceeds earmarked for climate transition. It was rejected by 78.3% of voters -- a more decisive result than 2015 -- with all 26 cantons again voting no. [2] The Swiss government, federal parliament, and most political parties had recommended rejection, citing risks to family businesses, wealth migration, and the country's competitive position as a residence for high-net-worth individuals and family offices.

For further context on how Swiss inheritance tax compares internationally, Switzerland country overview provides background on the broader Swiss tax environment. For jurisdiction-specific legal and succession questions, consult the Switzerland country overview together with advice from a qualified tax professional licensed to practise in the relevant canton.

Cantonal inheritance and gift tax rules change: Vaud revised its thresholds for children in January 2025, and further cantonal reforms remain possible. This page is reviewed periodically; for binding information, consult the relevant cantonal tax authority directly or retain a qualified tax professional with Swiss cantonal expertise.