Investing for Your Godchild in Switzerland: A Practical Guide for Godparents
April 24, 2026
8 min read
Investing for Your Godchild in Switzerland: A Practical Guide for Godparents
How can a godparent — a Götti or Gotte — give a gift that's still there in 18 years, and worth more than on day one? Three options, the legal framework, taxes, and honest math.
The Short Version in Three Lines
- A godparent who deposits CHF 500 annually into an equity savings plan for their godchild gives them roughly CHF 17,000 on their 18th birthday — on nominal contributions of CHF 9,000. That is a gift that genuinely lasts.
- There are three legally clean paths for godparent investing: deposit into the parents' existing child account, joint account in the child's name, or a godparent-owned portfolio with later transfer. Each has its own pro/con logic.
- Without parental consent, no godparent can open an account in the child's name — godparents have no legal representation rights in Switzerland. Coordination with the parents is therefore not optional.
Featured Snippet — The Answer
CHF 100 yearly = CHF 3,400 by 18. CHF 500 yearly = CHF 17,000.
What does a godparent give a godchild that lasts? A godparent who deposits a small annual amount into an equity savings plan over 18 years builds — through compounding — a gift worth several times the nominal contribution. CHF 100 annually at 7% return becomes CHF 3,400; CHF 500 annually becomes CHF 17,000 — substantial enough to fund university, a car, or a wealth-building start.
Godparents — Götti and Gotte, in Swiss parlance — face a peculiar gift question. They are not the parents. They want to give something meaningful, something that lasts. But they also don't want to overstep, interfere with parenting decisions, or override the family budget. What do you give?
The spontaneous answer from most godparents in Switzerland: an envelope with CHF 100–300 at baptism, birthday, Confirmation. Punctual, personal, undemanding. But also quickly spent, quickly forgotten — or sitting in a savings book earning 0.05%.
There is a better way. This article shows how a godparent can, with relatively modest amounts, create a gift that genuinely matters when the godchild transitions to adulthood — without overreach, without complicating family dynamics.
Three Options for Investing Godparents
Practically, there are three clean paths for godparents to invest for their godchild. Each has pros and cons that weigh differently depending on the relationship with the family and the godparent's preferences.
1
Deposit into the parents' existing child account
Simplest solution. Parents already have an account; you transfer directly into it.
By far the simplest variant. The parents have set up a child account or equity savings plan in their child's name. You ask for the IBAN, transfer your gift amount directly — and the money is in the right pot. No account opening, no administrative work, no tax complications for you.
ProsNo setup, no administration. Money lands in the optimal account immediately. Tax and admin burden on parents, not godparent.
ConsLoss of own "godparent signature". Godparent doesn't know how the money is invested. In family conflicts, money could theoretically be reallocated (rare, but possible).
2
Separate account in the child's name (with parental consent)
Godparent opens an account that runs in the godchild's name — godparent manages, parents must co-sign.
This route works in practice only if the parents actively cooperate and co-sign the account application. Reason: in Switzerland, godparents have no legal representation rights for their godchildren. An account in a minor's name can only be opened with consent and participation of the parents (or legal guardian). Once that's given, the godparent can take over management, make own investment decisions, and reduce the parents' admin burden.
ProsGodparent has full control over the investment strategy. The gift has a clear godparent identity. Parents are relieved of additional admin.
ConsRequires close family coordination. More work for godparent (portfolio management). Assets are taxed at child/parent level, not godparent level.
3
Godparent's own portfolio, transfer at 18 or later
Godparent holds the money in their own name and gifts it as a lump sum at adulthood or a later life stage.
The "godparent signature" variant: you open, in your own name, a second portfolio or savings plan that you mentally earmark for your godchild. You invest annually or on specific occasions. On the chosen day — coming of age, university start, wedding, first apartment — you transfer the full amount. Legally, the money belongs to you until handover, which has tax and control implications: you pay wealth and income tax on returns, but you also retain flexibility if life circumstances change (family relationship crisis, your own financial difficulty).
ProsFull godparent control. The handover moment has high symbolic value. Godparent can flex if life circumstances change.
ConsGodparent bears the tax (wealth and income tax on returns). Risk in case of personal insolvency or estate (money counts as personal assets). More admin.
Our Pragmatic Recommendation
For most Swiss godparents, Option 1 (deposit into the parents' existing child account) is the right choice: minimum effort, maximum financial impact, no family complications. Option 2 makes sense if you want to implement your own investment philosophy as godparent. Option 3 is appropriate for larger amounts (CHF 10,000+) and when the godparent plans a clear "handover ritual" beyond pure money transfer.
The Legal Framework — What Godparents in Switzerland Can and Cannot Do
The godparent role in Switzerland is a purely social and religious tradition, not a legal status. Godparents have no legal representation rights for their godchildren whatsoever. They cannot open accounts, sign contracts in the child's name, file tax returns. All that falls exclusively to the parents (or, in the parents' absence, a court-appointed guardian).
For investing godparents, this means concretely:
- Godparents cannot independently open an account in the child's name. Banks will require parental consent.
- Godparents can open an account in their own name at any time and save for the godchild there. Handover later as a gift.
- Direct deposit into an existing child account requires only the IBAN — no additional authorisation.
- If the parents die, the godparent does not automatically become guardian. That must be explicitly stipulated in a will during the parents' lifetime, and even then the cantonal authority (KESB) decides.
Taxes — Who Pays What?
If the godparent holds money in their own name for the godchild (Option 3), they carry the full tax liability: wealth tax on the accumulated capital, income tax on dividends and interest. Depending on portfolio size and canton of residence, this can amount to CHF 50–500 per year — not a showstopper, but worth considering.
On handover to the godchild, this becomes a gift. In most Swiss cantons, gifts to non-related persons are subject to gift tax — rates and exemptions vary substantially by canton. For larger transfers (CHF 10,000+), it's essential to clarify with a tax advisor or the cantonal tax office in advance. Three cantons (Schwyz, Lucerne and Obwalden) levy no gift tax; others have exemption thresholds between CHF 2,000 and CHF 50,000.
For deposits into the parents' account (Option 1) or into an account in the child's name (Option 2): the money is taxed at the child level, which during the child's minority means at the parents' level. The godparent has no tax consequences.
The Math — What a Godparent Can Achieve in 18 Years
To make it concrete: here are the calculated end-values for various godparent strategies over 18 years, at different returns:
| Godparent Strategy | Nominal Contributed | Value at 18 (7% return) |
|---|---|---|
| CHF 50 yearly (e.g., birthday) | CHF 900 | CHF 1,700 |
| CHF 100 yearly | CHF 1,800 | CHF 3,400 |
| CHF 200 yearly | CHF 3,600 | CHF 6,800 |
| CHF 500 yearly | CHF 9,000 | CHF 17,000 |
| CHF 1,000 yearly (substantial godparent position) | CHF 18,000 | CHF 34,000 |
Calculation: future value of annual annuity over 18 years at 7% nominal return (equity savings plan). Year-end deposits. Returns gross of inflation, taxes, and fees.
The table shows an important observation: CHF 200 annually — roughly what an active godparent already gives across birthdays, Confirmation, and other occasions — becomes around CHF 6,800. That's a financially substantial gift: enough to fund two semesters of university, or a third of a first car.
Godparents who can and want to contribute more (e.g., childless couples with high income, or godparents with a particularly close relationship with the godchild) can, with CHF 500–1,000 annually, create a gift in an order of magnitude that materially changes the young adult's life: CHF 17,000–34,000 funds a degree, a down-payment on a first apartment, or seed capital for self-employment.
When to Hand It Over? Three Sensible Trigger Dates
If the godparent has held the godchild's wealth in their own name (Option 3), the question of timing arises. Three trigger dates have proven practical:
18th birthday — coming of age. The classic handover moment. Symbolically strong, legally clean. The risk: an 18-year-old is not necessarily ready for CHF 10,000–30,000 of responsibility. A car can be bought quickly, the gift quickly consumed.
25th birthday or degree completion. A later, more mature trigger. The godparent retains control 7 years longer, and the money compounds further (CHF 17,000 at 18 becomes CHF 27,000 by 25 at 7%). The risk: the 25-year-old has already emotionally counted on the gift and is disappointed if it doesn't arrive at 18.
Specific life event. Wedding, first owned apartment, university start, founding a business. Here the handover is linked to a concrete purpose — that makes the gift meaningful at the economic moment when it's actually needed. The godparent decides flexibly.
Pragmatic recommendation: discuss openly with the godchild and parents at age 15–16 about how and when the handover should happen. That prevents false expectations and turns the handover into a planned family act rather than a surprise.
Frequently Asked Questions
What does a godparent give a godchild in Switzerland?
Traditional: CHF 100–500 at baptism, CHF 50–200 for birthdays, CHF 200–500 at Confirmation/Firmung, CHF 200–1,000 at 18th birthday plus a Goldvreneli (gold coin). Modern and more financially substantial: annual deposit into an equity savings plan in the child's name. CHF 200 yearly becomes CHF 6,800 at 18 (7% return).
Can I as a godparent open a savings account for my godchild?
Not in the child's name without parental consent and co-signing. But you can open an account in your own name at any time and mentally save for your godchild there, with later transfer as a gift.
How much should I save for my godchild?
Depends on your budget and your relationship with the godchild. CHF 100–200 annually is realistic for active godparents — yielding CHF 3,400–6,800 at 18. If you can contribute more: CHF 500–1,000 annually yields CHF 17,000–34,000, which can genuinely fund life decisions.
Do I have to pay gift tax when I transfer the money?
Depends on the canton. Three cantons (Schwyz, Lucerne, Obwalden) levy no gift tax. Others have exemption thresholds between CHF 2,000 and CHF 50,000 for non-related donors. For amounts above CHF 10,000, clarify in advance with a tax advisor or the cantonal tax office.
Can the godparent deposit directly into the parents' savings plan account?
Yes. Once the parents have opened a savings plan account and you have the IBAN, you can transfer at any time. At arvy, the deposit is automatically invested in the next monthly contribution. This is by far the simplest variant.
What happens if I die before the handover?
If the money is held in your name (Option 3), it counts in your estate and is distributed according to your will or statutory inheritance law. If you want to ensure your godchild receives the amount, you must specify this in your will — or transfer in good time to an account in the child's name.
arvy Savings Plan
Deposit straight into your godchild's savings plan.
If the parents have an arvy savings plan for the child, godparents can deposit at any time. From CHF 1 — flexible, Swiss-regulated, FINMA-supervised.
More on the children's account
Written by Thierry Borgeat, Co-Founder of arvy. Reviewed by Patrick Rissi, CFA and Florian Jauch, CFA. Legal information refers to Swiss Civil Code (ZGB) and cantonal tax law (as of 2026). For individual tax advice, consult a qualified tax advisor or the cantonal tax office.
Disclaimer: This article serves general educational purposes and does not constitute personal investment, legal, or tax advice. Returns are not guaranteed; past performance is not an indicator of future results. arvy AG is authorised by FINMA as a manager of collective assets under CISA Art. 24. Imprint & Legal Information.
