International inheritance: applicable law and taxes

An Italian citizen domiciled in Switzerland, with a property in Tuscany and an account in Ticino. A Swiss citizen living abroad who leaves heirs in two countries. These situations are increasingly common, and increasingly risky when addressed without planning. In international succession, two questions decide everything: which law governs the succession and where and how much tax is paid. They are two distinct levels that follow different rules: confusing them is the costliest mistake.

First level: which law applies

The succession — who inherits, in what shares, what the rights of the forced heirs are — is governed by civil law. Here the guiding criterion in Switzerland is the domicile of the deceased.

Someone who dies with their last domicile in Switzerland is generally subject to Swiss succession law, which applies to the entire estate.
Swiss law provides for forced shares (compulsory portions) in favour of descendants and the spouse: the revision of succession law, in force since 1 January 2023, reduced the compulsory portion of descendants and expanded the portion that can be freely disposed of, giving more room for planning.

On the European side, there is the EU Succession Regulation (No 650/2012), which for EU countries anchors the applicable law to the habitual residence of the deceased. Switzerland is not bound by the Regulation, but its effects intertwine with cross-border situations: a Swiss domicile and assets in the EU can involve several legal systems at the same time.

Professio iuris: choosing your own national law

A key instrument is the professio iuris: the option, for those holding a foreign citizenship, to choose that their succession be governed by the law of their country of origin rather than that of their domicile. An Italian citizen domiciled in Switzerland can, within certain limits, arrange for their succession to be governed by Italian law.

Why it matters:

The rules on compulsory portions and heirs vary considerably between legal systems.
The choice must be expressed clearly in the will or the succession agreement; it is not presumed.
It is a strategic decision, not a formality: it changes who inherits and how much.

Second level: inheritance taxes

Here everything changes, because the criterion is different and the competence is cantonal, not federal. In Switzerland there is no federal inheritance tax: the matter belongs to the cantons, and the differences are enormous.

Almost all cantons exempt the spouse and direct descendants; for other heirs the rates increase with the degree of kinship and the amount.
Competence generally depends on the domicile of the deceased for movable assets, and on the location of the property for real estate.

The critical point: the law governing the succession and the state that taxes it do not necessarily coincide. A property abroad may be taxed where it is located, regardless of the succession law applied to the rest.

The concrete risk: double taxation

With assets in several countries, the same estate can be reached by more than one tax authority. The tools to mitigate this:

The conventions against double taxation on inheritance, which Switzerland has concluded with some states (not all). Where they are missing, the risk of overlap is real.
The general criterion for real estate, which is normally taxed in the state where it is located.
Advance planning of the holding structure for foreign assets.

Without early analysis, heirs may find themselves paying twice or managing parallel procedures in different jurisdictions.

What to do, in practice

Map the estate by country and by type of asset: movable, immovable, shareholdings.
Define domicile clearly and consistently: it is the pivot of both the law and, often, the tax.
Consider the professio iuris if you hold a foreign citizenship.
Draw up a will or succession agreement coordinated across the legal systems involved, avoiding provisions that conflict between one country and another.
Check for the existence of a double taxation convention with the countries concerned.

In summary

Applicable law (domicile) and taxes (cantonal competence) are two distinct levels.
With a last domicile in Switzerland, Swiss succession law generally applies.
The 2023 revision reduced compulsory portions and expanded the freely disposable share.
The professio iuris allows a foreigner to choose the law of their own country.
There is no federal inheritance tax: what counts are the cantons, with broad exemptions for spouse and children.
Double taxation is the main risk: it is prevented, not remedied.

How we help you

We coordinate international succession on both levels: applicable law, professio iuris, a will that is consistent across legal systems, and analysis of cantonal taxes and the risk of double taxation. So that the estate reaches the right heirs, without tax surprises. Let’s talk about your succession.