GermanY-Switzerland Cross Border Inheritance/Estate Tax Guide
Last updated: 3 Oct 2025
Germany × Switzerland: Inheritance & Gift Tax — Treaty (Erbschaft), No Treaty for Gifts
Germany and Switzerland have a dedicated inheritance tax treaty (in force since 28 Sep 1980), allocating taxing rights primarily by decedent’s domicile with specific situs overrides (e.g., immovable property, business property of a PE). The treaty governs inheritances — gifts are not covered and fall back to domestic law. In Switzerland, inheritance/gift taxes are cantonal (no federal IHT; spouses typically exempt, children in many cantons exempt).
BMF confirms the treaty and its entry into force; Swiss federal law site (Fedlex) hosts the official text. Swiss inheritance/gift taxes are cantonal; there is no federal IHT and spouses/children are often exempt depending on canton. :contentReference[oaicite:0]{index=0}
At a glance
Treaty in force (inheritances)
- DE–CH inheritance tax treaty effective 28 Sep 1980.
- Core concept: domicile of the decedent; situs overrides for specified assets.
See BMF treaty page with downloads. :contentReference[oaicite:1]{index=1}
Swiss side is cantonal
- No federal IHT; cantonal rules vary.
- Spouses i.d.R. frei; Kinder in vielen Kantonen befreit (je nach Kanton).
Swiss gov’t info page. :contentReference[oaicite:2]{index=2}
What taxes can bite?
| Country | Tax & trigger | Scope highlights |
|---|---|---|
| Germany | Erbschaft-/Schenkungsteuer (beneficiary-based) | Worldwide scope if decedent or heir is an Inländer; treaty reallocates rights for inheritances. Gifts: no DE–CH gift treaty. |
| Switzerland | Inheritance/Gift taxes by canton | Rates, exemptions by canton; spouses commonly exempt; many cantons exempt descendants. No federal IHT. :contentReference[oaicite:3]{index=3} |
Treaty allocation (high level)
| Asset category | Who may tax under DE–CH treaty? | Notes |
|---|---|---|
| Movable property (general) | State of decedent’s domicile | Default rule; the other State generally refrains from taxing. (Treaty text.) :contentReference[oaicite:4]{index=4} |
| Immovable property | State where property is situated | Classic situs override. (Treaty text.) :contentReference[oaicite:5]{index=5} |
| Business property of a PE / fixed base | State where the PE/fixed base is located | Allocation by business situs. (Treaty text / commentary.) :contentReference[oaicite:6]{index=6} |
| Ships & aircraft in international traffic | State of enterprise | Comparable to many domicile-style estate treaties. :contentReference[oaicite:7]{index=7} |
| All property not expressly mentioned | State of domicile | Residual rule; watch debt allocation & exemptions. (Treaty text.) :contentReference[oaicite:8]{index=8} |
Situs drivers (domestic backstops)
| Asset | Typical domestic situs | Comments |
|---|---|---|
| Immovable property | Where located | Overridden by treaty anyway. |
| Tangible movables | Physical location at death/transfer | Inventory & location proof at key date. |
| Bank claims / deposits | Debtor location (bank) | Statements + bank domicile evidence. |
| Shares / stock | Place of incorporation (domestic context) | Treaty residual rule: domicile, unless specific override applies. |
Gifts: no DE–CH gift treaty
The DE–CH convention covers inheritances (Nachlass/Erbschaftsteuer) and does not cover gifts. Cross-border gifts revert to domestic law (Germany: Schenkungsteuer; Switzerland: cantonal gift taxes). Planning should test whether a death-time transfer under the treaty yields a better outcome than a lifetime gift.
See practitioner notes on the treaty’s inheritance-only scope and Swiss treaty lists. :contentReference[oaicite:9]{index=9}
Worked example (illustrative)
- Decedent: Swiss resident (Canton Zurich).
- Heir: Child resident in Germany (Inländer).
- Assets:
- Swiss bank portfolio (Zurich bank): CHF 1,000,000
- German rental apartment (Berlin): €600,000
- Assumptions (illustrative only): Zurich exempts children from IHT; ignore debts/other reliefs; FX rounded.
• Immovable (Berlin): Taxing right → Germany (situs override).
• Berlin property: Germany taxes per domestic ErbSt. Credit/relief follows treaty rules.
Education only. The actual outcome depends on exact canton rules, filing positions, valuations, exemptions and treaty application. Swiss taxes are cantonal; confirm local practice. :contentReference[oaicite:10]{index=10}
Planning checklist (no legal/tax advice)
- Confirm domicile under treaty tie-breaker, then map assets to treaty categories (movables, immovables, PE property).
- Check canton: exemptions for spouse/children differ; align with our cantonal overview. :contentReference[oaicite:11]{index=11}
- Sequence gifts vs. death transfers (no gift treaty): a bequest may be treaty-protected where a lifetime gift is not. :contentReference[oaicite:12]{index=12}
- Paper trail: death-date valuations, land registry extracts, bank domicile letters, PE documentation; keep certified copies for both authorities.
- Policy watch (CH): Beachte laufende politische Diskussionen zu einer möglichen bundesweiten Erbschaftsteuer (Referendumsvorstöße); derzeit cantonal only. :contentReference[oaicite:13]{index=13}
FAQ
Is there a Germany–Switzerland inheritance tax treaty?
Yes. It entered into force on 28 Sep 1980; see BMF (with downloads) and Fedlex for the official text. :contentReference[oaicite:14]{index=14}
Does the treaty cover gifts?
No. The treaty addresses inheritance (Nachlass/Erbschaftsteuer) only. Cross-border gifts revert to domestic law (DE Schenkungsteuer; CH cantonal gift taxes). :contentReference[oaicite:15]{index=15}
Do Swiss cantons always tax inheritances?
No. There is no federal IHT, and many cantons exempt spouses and, frequently, children. Always verify the specific canton. :contentReference[oaicite:16]{index=16}
Talk to us
We model treaty allocations for DE × CH, coordinate canton specifics, and prepare filing-ready documentation (valuations, situs proof).
