Inheritance tax in the canton of Vaud

Inheritance tax in the canton of Vaud
Contents
Inheritance tax in the canton of Vaud varies according to the relationship to the deceased, the value of the inheritance and other factors such as applicable deductions. Find out how heirs are taxed in this guide.

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)

1,845 %
2,197 %
2,673 %

3,249 %

3,379 %
3,500 %

Descendants of the surviving spouse from a previous marriage, parents and grandparents

4,059 %
4,834 %

5,882 %

7,148 %
7,434 %

7,500 %

Brothers, sisters, sons-in-law and sons-in-law

8,118 %
9,669 %
11,764 %
12,500 %
12,500 %
12,500 %

Uncles and nephews

12,177 %
14,503 %
16,500 %
16,500 %
16,500 %
16,500 %

Great-uncles, great-nephews, first cousins

18,942 %
20,000 %
20,000 %
20,000 %
20,000 %
20,000 %

Other collaterals and unrelated persons

24,354 %
25,000 %
25,000 %
25,000 %
25,000 %
25,000 %

Frequently Asked Questions

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.

Siblings are subject to higher tax rates. Depending on the value of the inheritance, these rates can range from 0.5% to 16%.

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.

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.

All movable assets (such as bank accounts, stocks, etc.) and real estate (properties, land, etc.) are subject to inheritance tax.

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.

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.

Contents
This content is protected by copyright law. It may not be copied, reproduced or distributed without authorization.