In Switzerland, no inheritance tax is levied at the federal level.
The taxation of estates falls exclusively under the jurisdiction of the cantons. This results in substantial disparities depending on where the estate is settled and the geographical location of the assets involved.
Cantonal jurisdiction and frequent exemptions
Each canton independently determines its own tax rules, brackets, deductions, and exemptions:
- Varied cantonal regimes: Almost all cantons levy an inheritance tax, with the notable exceptions of Schwyz and Obwalden, which have abolished it entirely. The canton of Grisons, for its part, delegates the levying of this tax exclusively to its municipalities.
- Broad exemptions for close relatives: In the vast majority of cantons, the surviving spouse, registered partner, and direct descendants (children and grandchildren) are completely exempt from inheritance tax. More distant heirs, such as siblings, nieces and nephews, and unrelated individuals—particularly cohabiting partners and third parties—generally remain subject to the tax. The progressive tax brackets applied to them can reach particularly high rates.
Jurisdiction and intercantonal allocation rules
When an estate involves multiple cantons, precise constitutional rules govern the allocation of taxing rights to prevent double taxation:
- Asset allocation: The taxation of movable property, such as bank accounts, securities, and personal assets, falls to the canton of the deceased's last place of residence. Immovable property, by contrast, is taxable exclusively in the canton where each property is located.
- Prohibition of double taxation: When real estate is located in a canton other than the deceased's last place of residence, an intercantonal allocation is performed based on harmonized asset quotas. This mechanism prevents the same estate value from being taxed more than once. Each canton, however, remains free to apply its own tax brackets to the portion of the estate under its jurisdiction.
The specific tax arrangements depend on the canton in question. For more details, see our articles on inheritance tax in Zurich and on inheritance tax in Aargau. A federal initiative also proposes to call this cantonal model into question. Finally, the preparation of succession documents is covered in our article on AI for a succession deed.
Legal sources
Federal legislation:
- Art. 127 para. 3 Cst. (cited in particular in BGE 150 I 31 and in Federal Supreme Court judgment 2P.314/2001 ): prohibition of intercantonal double taxation and the tax competence of the cantons.
Federal case law:
- BGE 150 I 31 : freedom of the cantons in the valuation of the estate and allocation of tax competence between the canton of the deceased's last domicile, for movable property, and the canton where the immovable property is situated.
- Federal Supreme Court judgment 2C_300/2009 : absence of an inheritance tax at federal level and exclusive competence of cantonal legislation over the taxation of successions.
- Federal Supreme Court judgment 2P.314/2001 : method of intercantonal allocation and proportional deduction of the estate liabilities.