Overview of the taxation of inheritances and gifts in Switzerland, specifically in the canton of Geneva, and of the rules on intercantonal and international allocation
Summary
In Switzerland, inheritances and gifts are taxed exclusively at the cantonal level, as the Confederation has no legislative competence in this area (Art. 3 of the Swiss Federal Constitution). Consequently, the applicable tax regime varies from one canton to another, in accordance with the respective cantonal legislation.
Gift Tax
Gift tax applies to any inter vivos transfer made gratuitously with the intention of making a gift (animus donandi).
The concept of a gift largely corresponds to that set out in the Swiss Code of Obligations (Art. 239 para. 1 CO). In tax matters, however, the intention to make a gift (animus donandi) is generally presumed in transactions between related parties (Federal Supreme Court, judgment 9C_118/2025 of 22 April 2026, consid. 3.2). Nevertheless, the Federal Supreme Court has held that the transfer of shares from a son to his father at nominal value, rather than at fair market value, pursuant to a shareholders’ agreement, did not constitute a taxable gift. Although the transaction took place between related parties, the shareholders’ agreement applied equally to all shareholders and did not disclose any intention to make a gift (animus donandi).
Mixed gifts are likewise subject to gift tax, but only in respect of the gratuitous portion of the transfer. A typical example is the transfer of real property subject to a right of habitation or a usufruct. In such cases, the capitalized value of the usufruct or right of habitation is treated as consideration provided by the donee, with the result that the transaction qualifies as a mixed gift (Federal Supreme Court, judgment 5A_742/2020 of 25 February 2021, consid. 9.1.3).
Certaininter vivostransactions may likewise be subject to gift tax. This is the case, for example, where a Swiss-resident settlor transfers assets to a discretionary trust or to a foundation that does not benefit from tax-exempt status.
Gift tax is levied under the applicable cantonal legislation, in accordance with the conditions and rates prescribed by the relevant canton. The Federal Supreme Court has developed rules governing the allocation of taxing rights between the cantons, which apply equally to gift tax and inheritance tax. As a general rule, gifts of movable property are taxable in the canton of the donor’s domicile, whereas gifts of immovable property are taxable in the canton where the property is situated. By contrast, shares in a real estate company are regarded as movable property and are therefore taxable in the canton of the donor’s domicile.
Gift Tax in the Canton of Geneva
In the Canton of Geneva, the taxation of gifts is governed by the Law on Registration Duties (LDE).
In the case of gifts of movable property, registration duties are payable only if the donor is domiciled in the Canton of Geneva (Art. 11 para. 1 LDE). By contrast, gifts of immovable property situated in the Canton of Geneva are subject to registration duties irrespective of the donor’s domicile (Art. 11 para. 2 LDE).
Gift tax is payable by the donee (Art. 166 para. 2 LDE). The donor is, however, subsidiarily liable for its payment (Art. 166 para. 2 LDE). Upon the donor’s death, any outstanding gift tax liability is transferred to the donor’s heirs (see Court of Justice of the Canton of Geneva, judgment ATA/659/2024 of 4 June 2024, in particular consid. 4.16).
If the donor pays the gift tax himself, the amount of tax borne by the donor constitutes an additional gift, which is itself subject to gift tax (Court of First Instance for Administrative Matters of the Canton of Geneva, judgment JTAPI/452/2021 of 10 May 2021). The tax administration applies a gross-up calculation using the following formula: tax = [rate × amount of the gift] / [1 − rate].
Gift tax is calculated on the basis of the fair market value of the gifted assets (Art. 18 LDE). A gift of a usufruct is taxed according to the value of the usufruct determined by reference to the age of the usufructuary donee (see Art. 26 LDE), rather than on the basis of the capitalized value of the usufruct, as is the case in many other cantons. Conversely, the gift of bare ownership of an asset (i.e., a gift subject to a reserved usufruct) is taxed on the full ownership value of the asset (Art. 18 LDE).
The applicable tax rate depends on the degree of kinship between the donor and the donee. However, gifts made to a spouse and to relatives in the direct line, whether ascending or descending, are exempt from gift tax (Art. 27A LDE).
However, the exemption applicable to gifts made to a spouse and to relatives in the direct line does not apply to persons who were subject to taxation based on expenditure (lump-sum taxation) during the three years preceding the gift (see, for an application of this rule, Court of First Instance for Administrative Matters, judgment JTAPI/16/2022 of 10 January 2022).
The maximum applicable tax rates, including cantonal additional centimes and applicable to gifts exceeding a CHF 500,000 threshold, are as follows:
| Degree of kinship | Maximum tax rate |
| Spouse and relatives in the direct line | Exempt |
| Siblings | 25.2% |
| Uncles, aunts, great-uncles, great-aunts, nephews, nieces, great-nephews, great-nieces | 29.4% |
| Third parties | 54.6% |
The above rates include the cantonal additional centimes of 110% of the cantonal tax, levied under the Geneva Law on Cantonal Additional Centimes (LCACant). There are no communal additional centimes for registration fees (see the Geneva Law on Public Contributions, LCP).
An unmarried partner is not granted any special tax status and is therefore treated as an unrelated third party for gift tax purposes (see Court of Justice of the Canton of Geneva, judgment ATA/1411/2025 of 16 December 2025).
Gifts must be reported within two months (Art. 160 LDE). The obligation to file a gift tax declaration lies with both the donor and the donee (Art. 138 LDE).
Comparative Overview of the Gift Tax Regimes in the Cantons of Vaud and Valais
For comparison, the gift tax rates in the Canton of Vaud are as follows:
| Degree of kinship | Maximum rate |
| Spouse | Exempt |
| Descendants in the direct line | 7% (maximum rate reached from CHF 1,303,000). Descendants in the direct line benefit from an exemption on the first CHF 300,000. |
| Descendants from a previous marriage of the surviving spouse, father and mother, grandparents, great-grandparents | 15% (maximum rate reached from CHF 1,000,000) |
| Siblings, sons-in-law and daughters-in-law | 25% (maximum rate reached from CHF 400,000) |
| Uncle, nephew | 33% (maximum rate reached from CHF 314,000) |
| Third parties | 50% (maximum rate reached from CHF 50,000) |
A distinctive feature of Vaud law is that foreign nationals who do not carry on, and have never carried on, any gainful activity in Switzerland benefit from a 50% reduction in gift tax (Art. 36 LMSD).
In the Canton of Valais, the rates are as follows:
| Degree of kinship | Rate |
| Blood relatives in the direct line, spouse not judicially separated, persons living in a stable unmarried partnership of at least 5 years or who have a child in common | Exempt |
| Kindred of the father and mother (siblings, etc.) | 10% |
| Kindred of the grandparents | 15% |
| Kindred of the great-grandparents | 20% |
| Other beneficiaries (third parties) | 25% |
In the Canton of Valais, no tax is levied on inheritance shares whose net value does not exceed CHF 20,000 or on gifts whose annual aggregate value does not exceed CHF 10,000 (Art. 112 of the Valais Tax Law).
Inheritance Tax
The majority of cantons levy a tax on hereditary shares, i.e., on the share of the estate inherited by each heir or legatee. The heirs and legatees are liable for the payment of the tax.
In intercantonal matters, inheritance tax on movable assets is levied by the canton of the deceased’s last domicile, whereas inheritance tax on immovable property is levied by the canton in which the property is situated. However, where a deceased person owns immovable property located outside their canton of domicile, an intercantonal allocation of taxing rights must be carried out between the canton of domicile and the canton(s) in which the property is situated. Accordingly, where an estate comprises both movable assets and immovable property located in a canton other than the deceased’s last canton of domicile, each relevant canton may tax the corresponding portion of each hereditary share or legacy. The allocation is based on the ratio of the assets attributable to each canton compared with the total estate. In practice, the canton of the deceased’s last domicile levies inheritance tax on all heirs and legatees, but only on a proportional basis, by comparing the value of the assets allocated to it (i.e., movable assets and immovable property located in the canton of domicile) with the total gross assets of the estate (Federal Supreme Court, judgment 2C_415/2017 of 2 June 2017, consid. 2.1).
For inheritance tax purposes, shares in a real estate company constitute taxable movable property in the canton of the deceased’s last domicile. The Swiss Federal Supreme Court has consistently held that the civil law characterization of the asset, rather than an economic approach, is decisive. Accordingly, shares in a real estate company must be treated as movable property, even where the transfer concerns all of the company’s shares (ATF 108 Ia 252, consid. 6c). This principle was expressly applied to shares in French sociétés civiles immobilières (SCIs) by the Vaud Cantonal Court, which confirmed that such shares constitute movable property subject to Vaud inheritance tax (judgment FI.2022.0065 of 7 October 2022).
In the Canton of Geneva
The Canton of Geneva levies inheritance tax in accordance with the provisions of the Law on Inheritance Duties (LDS).
For estates opened in the Canton of Geneva (i.e., where the deceased was domiciled in the canton), inheritance tax is due on all assets forming part of the estate, regardless of their nature and location, with the exception of immovable property situated outside the canton (Art. 4 para. 1 LDS).
For estates opened in another canton, inheritance tax is due on immovable property situated in the Canton of Geneva, as well as on furniture, collections, and works of art of any kind located in the canton (Art. 4 para. 2 LDS).
For estates opened abroad, inheritance tax is due on immovable property situated in the Canton of Geneva and on furniture, collections, and works of art of any kind located in the canton (Art. 4 para. 5 LDS).
Where an estate opened in the Canton of Geneva includes immovable property and movable assets located abroad, and in the absence of an international double taxation treaty, the deduction of debts is permitted only to the extent that such debts exceed the value of those foreign assets. Debts are therefore allocated primarily to assets located abroad, irrespective of the assets to which they relate (Art. 14 paras. 6 and 7 LDS).
The maximum tax rates are as follows:
| Degree of kinship | Maximum rate |
| Spouse and relatives in the direct descending and ascending line | Exempt |
| Siblings | 23.1% (maximum rate reached from CHF 200,000) |
| Uncles, aunts, great-uncles, great-aunts, nephews, nieces, great-nephews, great-nieces | 27.3% (maximum rate reached from CHF 500,000) |
| Third parties | 54.6% (maximum rate reached from CHF 100,000) |
Acquisitions by inheritance by a spouse and by relatives in the direct ascending and descending line are exempt from inheritance tax. However, this exemption does not apply where the deceased was subject to expenditure-based taxation (lump-sum taxation) during the three years preceding their death (Art. 6A LDS).
Comparison with the Cantons of Vaud and Valais
The inheritance tax rates in the Canton of Vaud are identical to the gift tax rates (see the comparison of gift tax rates above). However, for inheritance tax purposes, descendants in the direct line benefit from an exemption of CHF 1,000,000 per hereditary branch (see Art. 31 LMSD).
Vaud tax legislation further provides that, for the portion of the estate fully taxable in the Canton of Vaud, foreign nationals who do not carry on, and have never carried on, any gainful activity in Switzerland are entitled to a 50% reduction in inheritance tax (Art. 36 LMSD).
In the Canton of Valais, the inheritance tax rates are identical to the gift tax rates, except that the tax-free threshold is increased from CHF 2,000 to CHF 10,000 (see the comparison of gift tax rates above).
Intercantonal Allocation
The principle governing the allocation of taxing rights over an estate is that movable assets are taxable by the canton of the deceased’s last domicile, whereas immovable property is taxable by the canton in which it is situated. Where several cantons are involved, each canton may tax the succession according to a proportional allocation key. The relevant share is determined based on the value of the assets allocated to each canton in proportion to the total value of the estate.
Securities and other movable financial assets are valued by the canton of the deceased’s last domicile.
To ensure a uniform valuation of immovable property, the Swiss Tax Conference has issued a circular establishing the valuation factors to be applied depending on the canton in which the property is located (Circular CSI No. 22 of 22 March 2018).
For tax purposes, estate liabilities are deducted proportionally according to the location of the assets. No objective allocation of debts to specific assets is made, nor are liabilities allocated subjectively based on whether they are attributed to a particular heir under a testamentary disposition or in the course of an estate partition.
Legacies are not treated as debts of the heirs. Each canton may tax legacies proportionally, based on the share of the estate assets allocated to that canton.
Example
The deceased’s last domicile was in Geneva. The heirs are the deceased’s two descendants (A and B), who inherit in equal shares and are domiciled in Geneva. The deceased made a legacy of CHF 200,000 to legatee C, who is domiciled in the Canton of Valais.
The estate consists of securities (CHF 1,000,000) and an apartment located in Montreux (VD) with a tax value of CHF 2,100,000, encumbered by a mortgage debt of CHF 600,000. The deceased’s tax liabilities amount to CHF 50,000.
The taxable values attributable to the various cantons concerned are determined as follows:
| I. Devolution of the estate | |
| 1. Composition of the estate (gross assets) | |
| Securities | 1,000,000 |
| Apartment in Montreux (VD) | 2,100,000 |
| Total gross assets | 3,100,000 |
| 2. Estate liabilities | |
| Mortgage debt (Montreux apartment) | 600,000 |
| Tax liabilities of the deceased | 50,000 |
| Total liabilities | 650,000 |
| 3. Net estate assets | |
| Total gross assets | 3,100,000 |
| ./. Total liabilities | -650,000 |
| Net estate assets | 2,450,000 |
| 4. Delivery of the legacy and distributable balance | |
| Net estate assets | 2,450,000 |
| ./. Legacy in favor of C | -200,000 |
| Net balance to be divided among the heirs | 2,250,000 |
| 5. Allocation among the heirs in net value | |
| Legatee C (legacy) | 200,000 |
| Heir A (1/2 of the balance) | 1,125,000 |
| Heir B (1/2 of the balance) | 1,125,000 |
| Total distributed | 2,450,000 |
| II. Allocation of assets | |
| 1. Geneva | |
| Securities | 1,000,000 |
| 2. Vaud | |
| Apartment in Montreux (VD) – 110% | 2,310,000 |
| 3. Proportional shares of the located assets | |
| Total | 3,310,000 |
| Geneva | 30% |
| Vaud | 70% |
| III. Taxable values | |
| 1. Geneva | |
| Securities | 1,000,000 |
| Apartment in Montreux (VD) – 110% (VD) – 145% (GE) | 1,593,103 |
| Liabilities | 650,000 |
| Total net | 1,943,103 |
| Share (30%) of the assets taxable by GE | 587,040 |
| 2. Vaud | |
| Securities | 1,000,000 |
| Apartment in Montreux (VD) | 2,100,000 |
| Liabilities | 650,000 |
| Total net | 2,450,000 |
| Share (70%) of the assets taxable by VD | 1,709,819 |
| IV. Taxation of the legacy to C | |
| Securities | 200,000 |
| Share taxable by GE (30%) | 60,423 |
| Share taxable by VD (70%) | 139,577 |
| V. Taxation of heirs A and B | |
| 1. Geneva | |
| Securities | 800,000 |
| Apartment in Montreux (VD) | 1,593,103 |
| Mortgage debt (Montreux apartment) | 600,000 |
| Tax liabilities of the deceased | 50,000 |
| Net | 1,743,103 |
| Share taxable by GE | 526,617 |
| Share taxable by GE per heir | 263,309 |
| 2. Vaud | |
| Securities | 800,000 |
| Apartment in Montreux (VD) | 2,100,000 |
| Mortgage debt (Montreux apartment) | 600,000 |
| Tax liabilities of the deceased | 50,000 |
| Total net | 2,250,000 |
| Share taxable by VD | 1,570,242 |
| Share taxable by VD per heir | 785,121 |
Ultimately, the legatee receives the cash legacy of CHF 200,000. This legacy is subject to inheritance tax on a taxable basis of CHF 60,423 in Geneva and CHF 139,577 in the Canton of Vaud. The legatee must therefore bear a proportional share of the inheritance tax allocated to the canton in which the immovable property is situated, even though the subject matter of the legacy is not located in that canton and the legatee is not domiciled there.
The heirs receive the estate net of liabilities and the legacy, amounting to CHF 2,250,000, i.e., CHF 1,125,000 each. Each heir is subject to inheritance tax on a taxable basis of CHF 263,309 in the Canton of Geneva and CHF 785,121 in the Canton of Vaud.
International Relations
Switzerland has concluded only eight international treaties on inheritance taxation (with Austria, Denmark, Finland, Sweden, Germany, the United States, the United Kingdom, and the Netherlands).
In relations with other states, the cantons concerned apply their domestic legislation without limitation.
Cross-Border French-Swiss Estates
The 1953 Convention between France and Switzerland for the avoidance of double taxation in matters of inheritance was denounced by France with effect from 31 December 2014. Since 1 January 2015, Switzerland and France have each applied their respective domestic inheritance tax legislation without limitation.
The absence of a tax treaty between Switzerland and France may result in double taxation, as French tax law provides for the following connecting factors for inheritance tax liability:
Where the deceased dies while domiciled in France within the meaning of Art. 4B of the French General Tax Code (Code général des impôts, CGI), all assets held by the deceased, whether located in France or abroad, are subject to French inheritance tax (Art. 750 ter, para. 1 CGI).
Where the deceased dies while not domiciled in France, only movable and immovable assets located in France are subject to French inheritance tax (Art. 750 ter, para. 2 CGI). This includes, in particular, claims against debtors established in France and French securities.
Where the deceased dies while domiciled outside France, but one of the heirs is domiciled in France and has been so domiciled for at least six of the ten years preceding the transfer, all assets inherited by that heir, whether movable or immovable and whether located in France or abroad, are subject to French inheritance tax (Art. 750 ter, para. 3 CGI).
Art. 784 A CGI nevertheless provides for a tax credit for inheritance tax paid, where applicable, outside France. This credit is limited to the tax paid on movable and immovable assets located outside France.
By way of illustration, the applicable inheritance tax rate is 45% for transfers in the direct line exceeding EUR 1,805,677