Inheritance and gift taxes in the Canton of Zurich (cross-border guide)

Context

Inheritance and gift taxes in the Canton of Zurich

In a nutshell

• Inheritance and gift tax is subject to different rates depending on the degree of kinship.
• The tax is applied to the value of the inheritance or gift.

Key facts

• What: Inheritance and Donation Tax
• When: Not specified
• Where: Canton of Zurich
• Who: Not specified
• Amount: Not specified

The Law on Successions and Donations in the Canton of Zurich

The Inheritance and Gift Act in the Canton of Zurich states that inheritance and gift tax is subject to different rates depending on the degree of kinship. The tax is applied to the value of the inheritance or gift.

Concrete examples

Suppose a Swiss citizen resides in Zurich and leaves a legacy of CHF 1,000,000. If the inheritance goes to a close relative, such as a spouse or children, the tax rate will be 2%. If the inheritance goes to a distant relative, such as a brother or sister, the tax rate will be 4%.

Operational Checklists

To avoid having to pay inheritance and gift tax, it is important to consider the following options:

• Succession planning: You can plan successions in a way that reduces the impact of inheritance and gift tax.
• Donations: You can donate assets or money during your lifetime to reduce the impact of inheritance and gift tax.
• Foundations: is

Operational details

Practical Implications

The inheritance and gift tax in the Canton of Zurich can have a significant impact on a family's finances. It is important to understand the different rates based on the degree of kinship and how these apply to the value of the estate or donation. An example of how the tax could be applied is as follows: if a first-degree subject leaves an estate, the estate and gift tax will be a certain amount. If, on the other hand, a second-degree subject leaves a succession, the tax will be another amount. It is important to note that the inheritance and donation tax may vary depending on the degree of kinship and the value of the inheritance or donation.

Historical background

The law on succession and donation in the Canton of Zurich was amended in 2019, with the entry into force of the Federal Law on Successions and Donations (LSA) on 6 October 2017. This law introduced new rules for succession and donation, including inheritance and donation tax.

Structure of the law

The law on succession and donation in the Canton of Zurich is structured according to the degree of kinship and the value of the succession or donation. The rates of inheritance and gift tax vary according to the degree of kinship and the value of the inheritance or gift.

• First degree: the inheritance and gift tax is 20% on the value of the inheritance or donation.
• Second

Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Inheritance and gift taxes in the Canton of Zurich

If you are interested in better understanding the different rates according to the degree of kinship and how these apply to the value of the inheritance or donation, you can consult the law on inheritance and donations in the Canton of Zurich. In addition, you can contact an industry professional for more detailed information.

Rates by degree of kinship

The law on inheritance and donations in the Canton of Zurich states that the rates of inheritance and donation vary according to the degree of kinship. Here's an overview of the most common rates:

• Father/mother or spouse: 0% for the first million francs, 1% for the second million francs and 2% for the rest.
• Children: 0% for the first million francs, 1% for the second million francs and 2% for the rest.
• Spouses' parents: 1% for the first million francs and 2% for the rest.
• Brothers/sisters: 2% for the first million francs and 4% for the rest.
• Cousins: 4% for the first million francs and 6% for the rest.

Concrete examples

Let's imagine that you have a fortune of 2 million francs that you want to transfer to your children. According to the law on inheritance and donations in the Canton of Zurich, the share of children would be 0% for the first 1 million francs and 1% for the rest, or 100,000 francs.

For example, if you want to transfer 1.5 million francs to your children, the children's share would be

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