Swiss Gift and Inheritance Taxes: Cantonal Exemption Limits and Rules for Expats

Rates below are marginal ranges for the recipient class, before communal surcharges where applicable. Direct descendants means children, adopted children and grandchildren.

Two structural points expats miss: Schwyz levies neither tax, and Obwalden also abolished inheritance tax for all classes — which is why Zug/Schwyz estate planning is a real thing. And in Geneva and Vaud, the exemption for descendants can be lost where the deceased was taxed under a lump-sum (forfait) regime. Compare the wider tax picture on the Zug canton page and in the canton tax & cost benchmark.

Switzerland has estate-tax treaties with a handful of countries including the US, UK, Germany, Austria, Denmark, Finland, Norway, Sweden and the Netherlands, which allocate taxing rights and prevent double taxation on estates. Gifts are largely uncovered by treaties, so a gift of German real estate or from a German-resident donor can be taxed twice — get advice before signing. US citizens should read our FATCA and PFIC guide.

• Declare the receipt. Gifts and inheritances are not income tax events, but the assets belong in your next wealth statement. Unexplained wealth jumps trigger queries; a bank confirmation and a short letter from the donor settle them.
• Gift declarations are separate. Where tax is due, the recipient (sometimes jointly with the donor) files a gift declaration with the cantonal tax office — typically within 30–90 days, canton-dependent.
• Quellensteuer holders are still affected. Tax at source covers salary only; large wealth or foreign assets often force a subsequent ordinary assessment. Read Quellensteuer vs. ordinary assessment and the B-permit breakdown before you file.
• Wealth tax is real. A CHF 500,000 inheritance costs roughly CHF 1,000–3,500 a year in wealth tax depending on canton — factor it into your net income with the salary calculator.
• Pillar 3a and pension assets pass outside the estate to defined beneficiaries and are taxed separately at a reduced capital rate. See the Pillar 3a guide.

1. Marry or register the partnership if you are together long-term — it takes an unmarried partner from up to 40%+ to 0% in one step.
2. Gift early, not late. Cantons with a five-year lookback claw back deathbed gifting; a ten-year horizon does not.
3. Mind the domicile. Movable assets follow the donor's canton — a parent moving from Vaud to Schwyz changes the outcome, your own move usually does not.
4. Use the freely disposable share. Since 2023 you can leave up to half your estate outside compulsory shares — useful for a partner in a low-rate canton.
5. Keep real estate in view. Property is always taxed where it sits, plus later property gains tax on sale.
6. Document everything. Gift letters, transfer records and donor residence proof are what a tax inspector actually wants five years later.

• Federal Tax Administration (ESTV/AFC) — "Erbschafts- und Schenkungssteuern" dossier with cantonal rate tables.
• Cantonal tax laws, e.g. Zurich ESchG, Zug StG, Vaud LMSD, Geneva LDS — rates, classes and allowances.
• Swiss Civil Code Art. 457–536 (as amended 2023) — statutory heirs and compulsory shares.
• Federal estate-tax treaties (US, UK, DE, AT, DK, FI, NO, SE, NL) on Fedlex.

Rates change by cantonal vote. Confirm the current scale with the cantonal tax office or a Swiss tax adviser before acting on a large transfer — this guide is information, not tax advice.

Expecting a transfer? Confirm the donor's canton or country of domicile first — that single fact decides the bill. Then build your canton-specific plan on HowToSwiss for the tax, registration and insurance deadlines that follow.