How to calculate inheritance tax in the DACH region
Inheritance tax depends on the deceased's country and canton of residence, the relationship to the heir, and the net value of the estate. This guide gives you the key reference points for the three German-speaking countries.
Switzerland: cantonal rules dominate
Inheritance tax in Switzerland is levied by the cantons (sometimes municipalities). The federal level does not tax inheritances. Spouses and registered partners are exempt in every canton. Direct descendants are exempt in most cantons but taxed at reduced rates in a few (AI, LU, NE, VD). Other heirs face progressive rates of about 15 % to 55 %.
Germany: generous allowances, progressive rates
Personal allowances under the ErbStG:
- Spouse: €500,000
- Children: €400,000
- Grandchildren: €200,000
- Parents: €100,000
- Siblings, unrelated: €20,000
Above the allowance, rates run from 7 % to 50 % by tax class. The family home can pass tax-free to spouse or children under conditions.
Austria: no inheritance tax since 2008
Austria abolished inheritance and gift tax in 2008. What remains: property transfer tax (Grunderwerbsteuer) on real estate and reporting obligations for larger gifts.
How to run the numbers
You need: inventory (assets minus liabilities), relationship, gifts in the past 10 years (Germany), residence.
- Net estate value.
- Deduct the personal allowance.
- Apply the rate for the relationship class.
The Wegbegleiter App walks you through it per country and canton.
Frequently asked questions
- Do spouses pay?
- No in Switzerland and Austria. In Germany, a €500,000 allowance applies before tax kicks in.
- What about children?
- Germany: €400k per child per parent. Switzerland: mostly exempt. Austria: no inheritance tax.
- Do lifetime gifts count?
- In Germany yes: gifts within the last 10 years reduce the available allowance.
- Who files?
- The heirs. In Germany you must notify the Finanzamt within 3 months.
Wegbegleiter – the app for difficult moments
The Wegbegleiter app (wegbegleiterapp.com) guides you step by step: checklists, letter templates and an encrypted emergency folder – free to start.