Inheritance Tax
All cantons, with the exception of Obwalden and Schwyz, levy an inheritance tax. At the federal level, there are no such taxes.
Taxable assets:
Personal property such as cash, jewelry and stocks are taxed at the deceased's last place of residence.
Real estate is taxed at the place of its location.
The value of property is generally determined based on its market value.
Tax exemptions:
Spouses are exempt from inheritance tax in all cantons.
Direct descendants (children) are only required to pay inheritance tax in Appenzell Innerrhoden, Neuchâtel and Vaud.
Parents and partners are subject to tax in most cantons. There are exceptions, for example in Aargau, Appenzell Ausserrhoden and Valais for parents and in Nidwalden, Uri and Zug for cohabiting partners.
Tax deductions vary depending on the cantons. For example, for stepchildren it amounts to 15,000 francs in Zurich and 100,000 francs in Basel-Landschaft. Cantons like Basel-Stadt, Geneva and Valais also have their own exemption limits.
Tax calculation and due date:
The amount of inheritance tax depends on the value of the inherited property and the degree of relationship with the deceased person.
The tax calculator of the Federal Tax Administration can be used to make an estimate.
In most cantons, the tax is due 30 days after the issuance of the tax assessment notice.
Inheritance tax is prescribed in most cantons ten years after the death of the deceased.
Gift Tax
From a tax perspective, gifts in Switzerland are regulated in the same way as inheritances. This uniformity is intended to prevent people from transferring their assets during their lifetime to avoid inheritance tax.
Taxation of gifts:
The tax applies to:
- Amounts of money exceeding certain exemption thresholds,
- Transfers of real estate,
- Valuable items such as works of art,
- Insurance benefits due during the lifetime of the policyholder,
- Advances of inheritance (early sharing of the estate) and
- Transfers of rights by assignment or renunciation.
Spouses, registered partners and direct descendants are generally exempt from gift tax. This also applies to stepchildren and children placed with foster families, provided that they are treated in the same way as biological children in the respective cantons.
Declaration and calculation:
In most cantons, Gifts must be declared to the cantonal tax authorities within a certain deadline.
The amount of gift tax depends on the value of the donation and the relationship between the donor and the recipient.
The donor is often jointly and severally liable with the beneficiary. It is therefore advisable to agree in a donation agreement that the donor will pay the tax and to deduct this amount from the donation.
The tax calculator of the Federal Tax Administration can also be used to calculate the gift tax.
Conclusion
Inheritance and gift tax regulations vary from canton to canton in Switzerland and can be complex. It is important to find out about the specific regulations in your own canton and, if necessary, carry out tax and financial planning in good time. The tax calculator of the Federal Tax Administration (link) and the cantonal tax administration is available to you for detailed calculations and information.
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