Swiss Gift Tax for Americans: Canton Rules, US Form 709 and Form 3520

Swiss gift tax: the recipient pays, canton by canton

Switzerland does not have a federal gift tax. In November 2025, Swiss voters rejected a proposed federal gift and inheritance tax, so Schenkungssteuer remains a cantonal matter. Each of the 26 cantons sets its own rates and exemptions, and with one crucial difference from the US: the recipient (donee) is taxed, not the person giving the gift. Spouses and registered partners are exempt in all cantons. Direct descendants, children, are exempt in most cantons, but there are exceptions: Appenzell Innerrhoden taxes gifts to children, parts of Lucerne do, Neuchâtel charges about 3%, and Vaud allows gifts to a child tax-free up to CHF 300,000 per child per calendar year before a tapering allowance applies. Rates climb for siblings, more distant relatives and unrelated persons; in most cantons, cohabiting partners are treated as unrelated for gift tax purposes.

The US side: the donor pays, even from Switzerland

As a US citizen or green-card holder, you remain subject to US gift tax on worldwide gifts no matter where you live. For 2026, the annual gift tax exclusion is $19,000 per recipient, meaning you can give up to that amount to any number of people without filing or using lifetime exemption. Gifts above that count against the lifetime basic exclusion amount of roughly $15 million for 2026. If your spouse is a Swiss citizen and not a US citizen, you do not get the unlimited marital deduction, instead, you can use a special annual exclusion of about $190,000 (indexed annually). For a deeper look at how a non-citizen spouse affects your return, see Marrying a Swiss Citizen: What Changes on Your US Tax Return.

Form 709: when you give above the annual exclusion

If you give more than $19,000 to any one person in 2026 (other than the higher spouse limit), you generally need to file Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return. The form is due April 15, but US persons living abroad get an automatic extension to June 15, with a further extension to October 15 available. Filing Form 709 does not necessarily mean you owe tax, it simply tracks the gift against your lifetime exemption.

Receiving a gift in Switzerland? Form 3520 reporting

The US does not tax gifts you receive, but it can require reporting. If you receive gifts or bequests from a nonresident alien individual or foreign estate totaling more than $100,000 in a calendar year, you must file Form 3520 Part IV. For gifts from foreign corporations or partnerships, the threshold is $20,573 for 2026. The filing deadline is the same as your income tax return: April 15, June 15 if living abroad, and October 15 with an extension. Form 3520 is an information return, it is not a tax bill by itself. If you inherit from Switzerland rather than receive a gift, the rules have important differences; read Inheriting from Switzerland as a US Citizen: Tax, Form 3520, and Probate.

Where the two systems collide

The same transfer can trigger two different obligations. A Swiss relative gives you CHF 150,000. On the Swiss side, you as recipient may owe cantonal gift tax if you are not exempt, as a child in Vaud, for example, CHF 150,000 would be tax-free because it is below the CHF 300,000 annual allowance; as an unrelated person, you would likely owe. On the US side, the donor is not a US person so no US gift tax, but you received a foreign gift well over $100,000 (about $170,000), so you must file Form 3520. Reverse the direction: you give CHF 30,000 to a Swiss cousin. Switzerland usually taxes the recipient, but you as US donor have given an amount that may exceed the $19,000 annual exclusion, so you must file Form 709. Also note: Swiss cantonal gift tax paid by the recipient is not creditable against US gift tax because the two taxes are imposed on different persons.

Who is taxed

Switzerland: recipient (donee) at cantonal level; US: donor on worldwide gifts

Federal tax

Switzerland: no federal gift tax after Nov 2025 referendum rejection; US: yes, with annual exclusion and lifetime exemption

Spouse treatment

Swiss: spouses exempt in all cantons; US: unlimited marital deduction only for US-citizen spouses, about $190,000 annual exclusion for non-citizen spouse

Children

Swiss: exempt in most cantons; exceptions include AI, LU, NE, VD up to CHF 300,000; US: $19,000 annual exclusion per child

Large gift reporting

Swiss: cantonal declaration if taxable; US: Form 709 for donor over annual exclusion, Form 3520 for recipient over $100,000 foreign gifts

Practical planning checklist for US expats

• Check the cantonal rules for the recipient before accepting or making a large transfer, exemptions differ sharply, especially for cohabiting partners.
• Track the total of all gifts and bequests you receive from foreign individuals during the calendar year so you know whether you cross the $100,000 Form 3520 threshold.
• If you give, apply the $19,000 per-recipient annual exclusion first; file Form 709 if you exceed it, using the June 15 abroad deadline if applicable.
• Treat gifts to a non-US-citizen spouse separately: the higher annual exclusion is about $190,000, but gifts above that still require Form 709 and reduce your lifetime exemption.
• Keep written records of transfers, dates, amounts and relationships, because both Swiss cantonal authorities and the IRS may ask for them.

Gift tax vs. inheritance tax vs. wealth tax

It is easy to conflate the three. Swiss gift tax applies to transfers during your lifetime; Swiss inheritance tax applies at death; Swiss wealth tax is an annual levy on your worldwide net worth, not on transfers. For US persons, gifts and inheritances have distinct reporting paths, Form 709 for large gifts you make, Form 3520 for large foreign gifts or inheritances you receive, and annual FBAR/Form 8938 for accounts. We explain the annual Swiss wealth tax in detail in Swiss Wealth Tax for Americans: Canton Rates & Form 1116.