Inheritance in Switzerland: What Really Remains of Your Wealth
Inheritances often seem like a gift from heaven—unearned, often tax-free, and sometimes viewed with a touch of moral suspicion.
Bequests to direct descendants are often tax-free. However,
the assets being passed down have already been taxed multiple times over the years.
A simple example illustrates how these tax burdens accumulate over decades. Three residents of Zurich each earn an extra CHF 10,000, which they invest and plan to bequeath after 25 years:
- an employee with an average income
- an entrepreneur
- a multimillionaire
Anyone who earns, invests, and eventually transfers wealth pays a long list of taxes along the way, resulting in a total tax burden higher than most people think—especially for the wealthy.
Author's summary: Inheritance tax burdens accumulate over decades.