Inheritance Tax Switzerland 2026

No federal inheritance tax — Switzerland abolished it at federal level decades ago. Inheritance tax exists only at cantonal level, and varies significantly by canton. Most German-speaking cantons (Zug, Schwyz, Uri, Zurich, Lucerne, Aargau, Ticino, etc.) exempt spouses and children entirely. French-speaking cantons (Geneva, Vaud, Neuchâtel) charge small rates for children (3-4%) and spouses remain exempt everywhere. For a wealthy family with children, establishing residence in a German-speaking Swiss canton effectively eliminates inheritance tax entirely.

Zug, Schwyz, Uri, Nidwalden, Obwalden, and several others charge zero inheritance tax for spouses and children. Zug is the most well-known — it has the lowest income and wealth taxes in Switzerland AND zero inheritance tax for direct family. Many HNW individuals, commodity traders, crypto entrepreneurs, and family offices are based in Zug or neighbouring Baar specifically for this combination. Zurich (the business and financial hub) also charges zero for spouses and children — making it possible to live in Switzerland's largest city and pay no inheritance tax on family transfers.

Unmarried cohabitants (Konkubinat / concubinage) are treated as unrelated persons for inheritance tax in most cantons — meaning they face the highest rates (potentially 40-54% in cantons like Bern, Geneva, or Vaud). To avoid this, couples must either marry or enter a registered civil partnership (eingetragene Partnerschaft — now available to same-sex AND opposite-sex couples since 2022). The alternative is to use life insurance policies or specific contractual arrangements — Swiss life insurance passing to named beneficiaries may receive preferential treatment outside the estate.

If a non-resident dies owning Swiss real estate, Switzerland taxes the Swiss immovable property — cantonal rules of the property's location apply. A non-resident owning an apartment in Geneva pays Geneva cantonal inheritance tax on that property. A non-resident owning a chalet in Zug pays zero. For Swiss residents, the canton of last domicile taxes the entire worldwide estate (with credit for foreign taxes paid). Non-residents are only taxed on Swiss situs assets (real estate, Swiss company shares with majority Swiss assets).

A Swiss Stiftung (foundation) is a legal entity used for asset protection and succession planning. For family foundations (Familienstiftung), Swiss law is restrictive — genuine family foundations must have a public interest element or be used for specific permitted purposes. However, Liechtenstein (adjacent to Switzerland) has extremely flexible foundation law widely used by Swiss-resident HNW families for succession planning. Alternatively, Swiss charitable foundations (gemeinnützige Stiftungen) that serve public benefit purposes receive full tax exemption and are used for philanthropic wealth transfer. For pure estate planning, Swiss pension and 3a retirement accounts, life insurance, and cross-cantonal domicile planning are more commonly used tools.