Switzerland-USA Cross Border Inheritance Tax Guide
Last updated: 30 Sep 2025
Switzerland × USA: Inheritance & Gift Tax with the 1951 Treaty
Switzerland and the United States have a long-standing estate/inheritance tax treaty (1951). It coordinates relief via a pro-rata US unified credit et foreign-tax credits. Switzerland has no federal inheritance/gift tax—regimes are cantonal. US state estate/inheritance taxes are pas covered by the treaty and must be checked separately.
Note: The official text is available in German/French/Italian on Fedlex. Our English PDF is an unofficial translation for convenience; in case of discrepancies, the official text prevails.
En bref
What the treaty does
- Applies to US federal estate tax et Swiss cantonal inheritance/estate taxes.
- Grants a pro-rata US unified credit to eligible Swiss decedents: exemption scaled by US-situs / worldwide.
- Enables foreign-tax credits to mitigate double taxation (documentation and caps apply).
What it does pas do
- Does pas bind US state estate/inheritance taxes—check state law separately.
- Does pas replace cantonal Swiss rules (which differ by canton and relationship).
- Relief requires actual tax paid on overlapping assets to create a credit anchor.
Treaty scope & relief (1951 Convention)
| Sujet | How it works under the treaty | Pourquoi c'est important |
|---|---|---|
| Taxes covered | US federal estate tax; Swiss cantonal/communal inheritance/estate taxes. | Aligns relief to actual taxing layers in both countries. |
| Pro-rata US unified credit | US basic exclusion applied proportionally to US-situs / worldwide estate of a Swiss decedent. | Can reduce federal US estate tax to $0 where US-situs is small relative to worldwide estate. |
| Foreign-tax credit | Credit relief where the same asset is taxed in both systems (subject to caps/object-matching). | Prevents (some) double taxation when both sides levy tax. |
| Administration | Relief claimed via US estate filings (and Swiss cantonal procedures); maintain valuations/situs proof. | Documentation determines success of claims and credit caps. |
Swiss cantonal basics (who’s taxed/exempt)
| Theme | Typical position (varies by canton) | Examples |
|---|---|---|
| Who taxes? | Cantons/communes (no federal inheritance/gift tax). Competence: residence canton of decedent/donor; immovables by situs canton. | Bern vs. Zurich vs. Vaud etc.—rates, allowances and procedures differ. |
| Spouse & descendants | Spouses generally fully exempt; many cantons also broadly exempt children. | Zurich: spouse/children exempt; others may have small residual rates/thresholds. |
| Non-lineal heirs | Often taxable with progressive scales. | Siblings/unrelated persons frequently taxed; rates vary widely. |
| Special cases | Some cantons have abolished one or both taxes or grant strong charitable reliefs. | Schwyz/Obwalden (policy examples), charity exemptions if recognized. |
Need specifics? See our canton-by-canton guide: Impôt suisse sur les successions par canton.
US exposure: federal vs. state and situs drivers
- Fédéral : US-situs assets (e.g., US real estate; stock of US corporations; claims on US debtors) can be within US federal estate tax. The 1951 treaty may grant a pro-rata unified credit to Swiss decedents and credit relief.
- State: Several states impose their own estate/inheritance taxes; the treaty does pas bind states. Real/tangible property in-state is most exposed; many states don’t tax non-residents’ intangibles—check state law.
Liste de contrôle pour la planification (pas de conseils juridiques/fiscaux)
- Inventaire et carte assets by situs (US federal/state; Swiss canton) and type (real, tangibles, stock, claims).
- Model pro-rata unified credit for Swiss decedents: US-situs / worldwide × US exclusion.
- Anticipate credits: align foreign-tax credits to assets actually taxed on both sides; gather assessments and proof of payment.
- Check state exposure: real/tangible property and domicile ties; treaty doesn’t cover states.
- Swiss canton check: beneficiary class (spouse/child vs. others), abolished/exempt regimes, charitable status.
- Paper the file: valuations at death, situs evidence, entity elections (e.g., Form 8832), federal/state filings.
FAQ
Is there a US–Switzerland inheritance/estate tax treaty?
Yes. The 1951 Convention covers US federal estate tax and Swiss cantonal inheritance/estate taxes and provides relief via a pro-rata unified credit and foreign-tax credits. Official text (DE/FR/IT) on Fedlex here. Our unofficial English PDF here.
Does the treaty cover US state estate/inheritance taxes?
No. The treaty binds the federal level. State taxes must be checked separately.
Are Swiss spouses and children taxed?
Spouses are generally fully exempt; many cantons broadly exempt children too—but rules vary by canton. See our cantonal overview.
How is the US unified credit applied under the treaty?
For an eligible Swiss decedent, the US basic exclusion is applied proportionally to the ratio US-situs estate / worldwide estate. This can reduce or eliminate federal US estate tax.
What documentation is needed for credits?
Valuations, situs evidence, filed returns, and official tax assessments/payment proofs on the asset being credited—both for US federal filings and any cantonal or other cross-border credit claims.
Talk to us & downloads
We model federal/state outcomes, align cantonal rules, and prepare credit-ready documentation.