- Spouses and registered partners are exempt from inheritance tax in the canton of Vaud.
- Children benefit from an inheritance tax exemption of up to CHF 250,000
- Inheritance tax varies according to the amount inherited and degree of kinship
- Rates can reach 25% for large amounts
- It's possible to pay inheritance tax on the sale of valuable cultural property
Legal basis for inheritance tax
Inheritance tax in the canton of Vaud is governed mainly by the Civil Code , which sets out general inheritance rules, and cantonal tax legislation, which determines how inheritances are taxed.
In the canton of Vaud, the law concerning the real estate transfer tax and inheritance and gift tax (LMSD) governs the taxation of heirs.
In addition, the "dation en paiement d'impôt" (LDPI) introduced in 2005, allows heirs to pay inheritance and gift tax by handing over an item of high cultural value in lieu of cash.
Relationship and tax impact
Direct line
The degree of kinship between the heir and the deceased plays a fundamental role in determining the taxation. As is the case in many Swiss cantons, spouses and registered partners are fully exempt from inheritance tax in the canton of Vaud.
Children, on the other hand, benefit from a partial exemption up to an amount of CHF 250,000. Above this threshold, progressive tax rates apply.
Distant heirs
For more distant heirs, such as brothers and sisters, nephews and nieces, or individuals without a direct family relationship, the tax rates are higher. These can reach up to 25%, especially when the inherited amounts are substantial.
Tax rates and exemptions
The canton of Vaud uses a progressive tax scale. This means that the higher the inheritance share, the higher the applicable tax rate.
As an example, an inheritance passed to a nephew may be subject to a tax rate of 5% for the first 50,000 CHF, and this rate can rise to 25% for amounts exceeding 300,000 CHF.
Tax scale for direct line (children, grandchildren)
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
- CHF 800,000
3,249 %
- CHF 1,000,000
- CHF 2,000,000
Descendants of the surviving spouse from a previous marriage, parents and grandparents
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
5,882 %
- CHF 800,000
- CHF 1,000,000
- CHF 2,000,000
7,500 %
Brothers, sisters, sons-in-law and sons-in-law
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
- CHF 800,000
- CHF 1,000,000
- CHF 2,000,000
Uncles and nephews
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
- CHF 800,000
- CHF 1,000,000
- CHF 2,000,000
Great-uncles, great-nephews, first cousins
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
- CHF 800,000
- CHF 1,000,000
- CHF 2,000,000
Other collaterals and unrelated persons
- Amount
- Share of tax
- CHF 100,000
- CHF 200,000
- CHF 400,000
- CHF 800,000
- CHF 1,000,000
- CHF 2,000,000
Frequently Asked Questions
Who is exempt from inheritance tax?
In the canton of Vaud, spouses and direct descendants (children) are exempt up to certain limits. Children do not pay any tax on the first 250,000 CHF of inherited assets, while spouses benefit from a complete exemption from inheritance tax.
What is the tax rate for siblings?
Siblings are subject to higher tax rates. Depending on the value of the inheritance, these rates can range from 0.5% to 16%.
How much inheritance tax is payable by direct descendants in the canton of Vaud?
In the canton of Vaud, direct descendants such as children and spouses benefit from significant tax exemptions on inheritance. Spouses are completely exempt from paying inheritance tax, meaning they do not owe any taxes on the amounts they inherit from their deceased partner.
What is the rate for heirs with no direct family ties?
For distant heirs or heirs with no direct family ties, such as friends or third parties, rates can be as high as 25 % on inherited amounts.
What assets are subject to this tax?
All movable assets (such as bank accounts, stocks, etc.) and real estate (properties, land, etc.) are subject to inheritance tax.
How is tax calculated?
Tax is calculated according to the total amount of the inheritance and the degree of kinship between the deceased and the heir. The more distant the relationship, the higher the tax rate.
Do I have to declare an inheritance received outside Switzerland?
Yes, if you live in the canton of Vaud, you must declare all inheritances received, including those from abroad. Tax treatment may differ, however, depending on international double-taxation agreements.
