Inheritance in Switzerland: Expats should make sure they know how the inheritance tax in Switzerland can be applied to their assets. Everything in Switzerland, all the rules vary by canton. So we will provide you with all the details related to this topic and give you all the information.
Expats living in Switzerland can choose whether the Swiss inheritance tax law or the laws of their country of origin should apply in the event of their death. If someone dies without leaving a will or expressing a preference, the inheritance tax laws in Switzerland apply by default.
Swiss inheritance law includes enforced inheritance rules, which means that certain relatives cannot be deprived of inheritance even through the last will.
This means that at least 50% of the estate goes to the spouse or registered partner, and 75% of the remaining half goes to children and grandchildren.
Any legal heirs who receive an inheritance under enforced inheritance can object to a Swiss will that deprives them of heritage or does not honor the necessary amounts. However, they can also give up their statutory rights by signing a contract of inheritance assignment.
In some cases, spouses and children can inherit part of their relative’s pension. If the decedent has paid AHV contributions for at least one year, a surviving spouse, registered same-sex partner, or child may be eligible for an orphan’s inheritance pension.
A partner can get 948 – 1896 francs per month, while children can call 474-948 Swiss francs.
If the allowances are already there, then the heirs’ pension will increase by 20%.
Inheritance in Switzerland
Inheritance tax rates vary between the Swiss cantons; Some share inheritance tax responsibilities with municipalities, while some impose taxes on their own. There is no inheritance tax at all in one canton (Schwitz).
The taxable rate also varies depending on the value of the assets and the relationship between the heir and the deceased.
The person who inherits the estate pays the fee, but the tax does not apply to personal and household goods.
Rates vary from 0 to 55% and tend to be lower for close relatives.
If you do not want to accept the inheritance, the heirs can obtain a certificate of inheritance from the Swiss authorities to prove their right to inherit. Financial institutions need this certification before funds can be withdrawn from the deceased’s accounts.
Certification costs vary by canton but can be as high as a few thousand Swiss francs. Processing typically takes six to twelve weeks.
Spouses, children, and grandchildren are not subject to tax in Bern. Other heirs are divided into three groups:
Spouses and grandchildren are not subject to inheritance tax in Zurich. Other heirs are divided into six groups:
Inheritance in Switzerland: The estate tax can be applied in Switzerland if you buy Swiss property, so estate planning is vital. The rules for inheritance tax and what you also pay can vary depending on the Swiss canton you live in.
If you are in the process of planning for later life, you may also find it helpful to consult our guides to retirement in Switzerland and your estate planning in Switzerland.
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