Family office in Zug: Swiss stability with one of Europe's lowest tax burdens

Zug is one of Switzerland's smallest cantons but hosts a large concentration of holding companies, commodity traders, investment firms and family offices. Families choose it for political and legal stability, a strong franc, a short distance to Zurich's banks and airport, multilingual professionals and cantonal taxes that are among the lowest in Switzerland. Following the 2020 federal tax reform (TRAF), privileged holding regimes were abolished nationwide, and Zug now applies a low ordinary rate — a combined effective profit tax of about 11.7–11.8% in the city of Zug, including federal tax — together with participation relief on qualifying dividends and capital gains.

The regulatory perimeter is defined by function, not by the label 'family office'. Under Article 2(2)(a) of the Financial Institutions Act (FinIA), persons who manage solely the assets of persons with whom they have business or family ties are not subject to the Act. Article 4 of the Financial Institutions Ordinance (FinIO) defines family ties broadly: relatives in the direct line, collateral relatives to the fourth degree, spouses and registered partners, coheirs, and portfolio managers controlled by family members or by a trust or foundation set up by a family member — even where charitable institutions are also beneficiaries. A properly structured single family office therefore needs no FINMA licence.

A multi-family office that manages assets of unrelated families on a commercial basis is a portfolio manager under FinIA. Commerciality is presumed under FinIO Article 19 if gross earnings exceed CHF 50,000 a year, the firm has more than 20 contractual partners, or it has unlimited power of disposal over third-party assets above CHF 5 million — with family-tie mandates disregarded. A licensed portfolio manager needs Swiss domicile, qualified management with irreproachable business conduct, minimum capital of CHF 100,000, proper organisation and ongoing supervision by a FINMA-authorised supervisory organisation. Managing collective investment schemes above the FinIA Article 24 de minimis thresholds requires a licence as a manager of collective assets. Advisory-only offices serving clients in Switzerland must also consider the Financial Services Act (FinSA), including client adviser registration where applicable.

Anti-money laundering rules apply separately. An office with powers of disposal over others' assets may be a financial intermediary under the AMLA unless it is licensed and supervised under FinIA or a family or group exemption applies, in which case affiliation with a self-regulatory organisation (SRO) is required. From 1 October 2026 the new Legal Entities Transparency Act requires Swiss companies to report their beneficial owners to a federal register kept by the Federal Office of Justice, with staggered deadlines for existing entities ending between December 2026 and March 2027 (and 2028 for some categories). Switzerland exchanges financial account information under the CRS and is moving from a Model 2 to a reciprocal Model 1 FATCA agreement.

Switzerland has no domestic trust law — the Federal Council shelved its draft in September 2023 — but recognises foreign trusts under the Hague Trusts Convention, so Swiss companies may act as trustees or as private trust companies of foreign trusts. Swiss family foundations are restricted by Article 335 of the Civil Code, which is why many families pair a Zug office with a Liechtenstein foundation or a common-law trust. Zug exempts spouses and direct descendants from cantonal inheritance and gift tax, and the federal inheritance tax initiative was rejected by about 78% of voters on 30 November 2025. Zug suits European and globally mobile families, entrepreneurs relocating with their business, and families wanting a neutral, well-regulated hub; its drawbacks are higher operating costs, the need for genuine substance, and immigration limits for non-EU staff.