Inheritance and gift tax in Switzerland (impôt sur les successions et donations / Erbschafts- und Schenkungssteuer) is a cantonal tax levied on estates and gifts received by beneficiaries. The Swiss Confederation has no federal inheritance tax — each canton defines its own rules, rates and exemptions. The defining characteristic of the Swiss system is the near-universal exemption for transfers between spouses and from parents to children: in 22 of 26 cantons, direct-line inheritance is completely exempt from cantonal inheritance tax. Schwyz and Obwald extend the exemption to all successions regardless of family relationship.

Transfers to non-family recipients (unrelated parties, non-married partners, nephews and nieces) are taxable at rates that vary significantly by canton and degree of relationship — from approximately 10% to 50% for distant relatives. This creates a strong incentive for cantonal tax planning for individuals with non-family succession intentions. The contrast with France — where inheritance tax applies to all beneficiaries (including children) at progressive rates of up to 45%, even after the Pacte Dutreil reduction — is one of the most significant financial advantages of Swiss tax residency for business owners.

The Franco-Swiss double taxation convention on inheritance (31 December 1953) allocates inheritance tax rights based on the domicile of the deceased and the location of assets. It prevents the same estate from being fully taxed in both countries, but does not eliminate French inheritance tax on French assets of Swiss-resident decedents — requiring careful asset location planning in Franco-Swiss estate structures.

At Hectelion, we integrate cantonal inheritance tax rules into our Franco-Swiss estate structuring in our structuring and valuation for succession mandates.