Swiss Inheritance Tax: Rates by Canton, Exemptions, and What Foreign Heirs Pay

Your parent dies in Zurich. You live in London. Within weeks, a letter arrives from the cantonal tax office demanding a detailed inventory of every asset — and you have 60 days to respond. Welcome to the Swiss inheritance tax system, where 26 cantons each set their own rules, rates, and exemptions.

Switzerland has no federal inheritance tax. Instead, each canton imposes its own cantonal inheritance and gift tax (Erbschafts- und Schenkungssteuer), with rates, exemptions, and filing requirements that vary dramatically depending on where the deceased lived — not where the heirs live.

Which Canton's Rules Apply?

The inheritance tax is levied by the canton of the deceased's last legal domicile (Wohnsitz). If someone dies in a Zurich hospital but was legally domiciled in Schwyz, Schwyz's rules apply. For real estate, the canton where the property is located has taxing authority, regardless of the deceased's domicile.

This matters enormously because cantonal rates range from 0% to nearly 50%.

Cantons With No Inheritance Tax

Schwyz and Obwalden charge zero inheritance tax — for anyone. If the deceased was domiciled in either canton, all heirs inherit free of cantonal tax regardless of their relationship to the deceased or where they live.

Spousal and Direct Descendant Exemptions

Most cantons exempt surviving spouses and registered partners entirely. Zurich, Bern, Basel-Stadt, Geneva, and Vaud all charge 0% on inheritances passing to a surviving spouse. Direct descendants (children, grandchildren) are also exempt in many cantons — Zurich charges descendants nothing, while Vaud and Geneva apply modest rates (typically 1–3.5%) above certain thresholds.

What Foreign Heirs Actually Pay

If you're a non-resident heir — a sibling, niece, nephew, or unrelated beneficiary — rates escalate quickly. In Vaud, unrelated heirs pay up to 49.5%. In Geneva, distant relatives face rates between 26% and 54.6% depending on the amount. Zurich charges siblings 6–18% and unrelated beneficiaries 18–36%.

The key exemption thresholds also vary. Zurich exempts the first CHF 200,000 for children and CHF 50,000 for siblings. Geneva's thresholds are lower.

The Tax Inventory Process

Within approximately 14 days of a death, the local tax office (Steueramt) initiates a mandatory tax inventory (Steuerinventar). As an heir, you receive a comprehensive questionnaire requiring valuations of all assets — bank accounts, securities, real estate, vehicles, art, and business interests — calculated precisely to the date of death.

You get 60 days to complete and return this inventory, accompanied by the deceased's final tax return. Missing this deadline triggers estimated assessments and penalties.

Unmarried Partners: The Worst Tax Position

Unmarried cohabiting partners (Konkubinat) face the harshest treatment. Under Swiss statutory succession, they inherit nothing without a will. Even with a will, many cantons classify them as "unrelated" for tax purposes, applying top-tier rates. In Geneva, an unmarried partner could pay over 50% on their inheritance — a devastating combination of emotional loss and financial penalty.

How the 2023 Reform Affects Tax Planning

The January 2023 Swiss inheritance law reform reduced the compulsory portion (Pflichtteil) for descendants from 75% to 50% of their statutory share, and abolished the compulsory portion for parents entirely. This means testators now have a freely disposable portion of 50% of the estate (up from 37.5%), creating more flexibility to structure bequests in tax-efficient ways across cantonal lines.

Practical Steps for Foreign Heirs

If you're an English-speaking heir dealing with a Swiss estate, start with these steps:

1. Identify the deceased's last legal domicile — this determines which canton's tax rules apply
2. Request multiple copies of the International Death Certificate (CIEC format) from the civil registry — you'll need them for the tax office, banks, and your home country
3. Respond to the tax inventory within 60 days — late responses trigger estimated assessments
4. Get an apostille from the cantonal State Chancellery (Staatskanzlei) for any Swiss documents you need recognized abroad (CHF 20–50 per document)

The Someone Died in Switzerland guide includes canton-by-canton tax rate tables, the complete tax inventory checklist, and bilingual templates for communicating with the Steueramt — so you don't miss a deadline during the most disorienting weeks of your life.

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