In Switzerland, tax legislation is the responsibility of the cantons, which means that there are 26 different regulations. An explanation would go beyond the scope of this article, so only a rough overview can be given. The transfer of assets is taxed. In other words, the assets that actually pass to the individual heirs. The recipients of the assets (the heirs) are therefore liable to pay tax.
If the heirs are also liable for tax in Germany, there is a risk of double taxation. For this reason, a double taxation agreement (DTA) has been concluded between Germany and Switzerland. Movable assets (not real estate or business assets) are taxed at the deceased's last place of residence, Article 8 DTA. Real estate assets are taxed at the place where they are located, Article 5 DTA. However, Germany can make use of an additional taxing power if the acquirer is German or resides there, Article 8(2) DTA. It is therefore advisable to seek legal assistance in cases of international inheritance law, as the cases are often multi-layered and complex.