Skip to content

Family office · Europe

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

Switzerland does not license family offices as such. A single family office that manages only the assets of persons with family ties is outside the Financial Institutions Act, while a multi-family office managing third-party assets generally needs a FINMA licence as a portfolio manager. Canton Zug combines this federal framework with a low cantonal tax burden and a dense advisory and investment ecosystem.

Enquire with Legal WealthFamily office in Zug
Key facts
Regulator
FINMA and FINMA-authorised supervisory organisations (licensed MFOs); SROs for AMLA where applicable; Zug Cantonal Tax Administration
Legal basis
Financial Institutions Act (FinIA) Art. 2(2)(a) and FinIO Art. 4; Anti-Money Laundering Act (AMLA); Swiss Code of Obligations; Zug Tax Act
Typical vehicles
Zug AG or GmbH family office, holding AG, foreign trust or Liechtenstein foundation above it, private trust company, Swiss or foreign fund vehicle
Licensing (SFO/MFO)
SFO for persons with family ties: outside FinIA. MFO managing third-party assets commercially: FINMA portfolio manager licence plus supervisory organisation
Tax incentive
No special regime; ordinary combined profit tax of roughly 11.7–11.8% in the city of Zug, participation relief on dividends and gains
Minimum AUM / spend
None for an SFO. Licensed portfolio manager: minimum capital CHF 100,000 (FinIA Art. 22)
Local substance
Effective management in Switzerland, Swiss-resident board representation in practice, real office and staff for tax residence and banking
Time to set up
SFO company: typically 2–4 weeks. FINMA portfolio manager licence: typically 6–12 months including supervisory organisation affiliation
01

Overview

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.

02

Key benefits

  • Clear statutory exemption from FinIA licensing for single family offices serving persons with family ties
  • Low combined profit tax in the city of Zug (about 11.7–11.8%) with participation relief for holding income
  • Spouses and direct descendants exempt from Zug inheritance and gift tax
  • Lump-sum (expenditure-based) taxation available in Zug for qualifying newly arrived foreign nationals
  • Swiss recognition of foreign trusts under the Hague Convention and easy combination with Liechtenstein foundations
  • Deep private banking, custody and legal ecosystem within easy reach of Zurich
  • Political and currency stability and an extensive double tax treaty network
  • Option to upgrade to a FINMA-licensed multi-family office as the family's needs grow
03

Requirements

  • SFO exemption: manage solely assets of persons with family ties as defined in FinIO Art. 4 (direct line, collateral relatives to the fourth degree, spouses, coheirs, or entities controlled by the family or by a family trust or foundation)
  • MFO: FINMA licence as portfolio manager if acting on a commercial basis (FinIO Art. 19 tests: over CHF 50,000 gross earnings, over 20 contractual partners, or over CHF 5 million of third-party assets under unlimited power of disposal)
  • Licensed portfolio manager: Swiss domicile, at least two qualified managers as a rule, guarantee of irreproachable business conduct, minimum capital CHF 100,000, risk management and compliance functions
  • Ongoing prudential supervision by a FINMA-authorised supervisory organisation and annual regulatory audit for licensed managers
  • Managers of collective assets: FINMA licence once assets exceed the FinIA Art. 24 thresholds (generally CHF 100 million, or CHF 500 million for unleveraged portfolios with a five-year lock-in)
  • AMLA: assess financial intermediary status; where caught and not FINMA-supervised, join a recognised SRO and apply KYC, beneficial owner identification and suspicious activity reporting
  • Legal Entities Transparency Act: report beneficial owners of Swiss entities to the federal Transparency Register from 1 October 2026 within the applicable transitional deadline
  • Company law: AG minimum share capital CHF 100,000 (at least CHF 50,000 paid in) or GmbH CHF 20,000; registration in the Zug commercial register
  • Tax: effective place of management in Zug, arm's-length pricing for services to family members and entities (often agreed by advance tax ruling), VAT registration where taxable turnover exceeds CHF 100,000
  • CRS/FATCA: classify each entity, trust and foundation in the structure and meet due diligence and reporting duties
04

Structure designs

Embedded or stand-alone SFO company

A Zug AG or GmbH employing the family's investment, accounting and administrative staff, serving only persons with family ties. Suits families wanting full control without FINMA licensing; often remunerated on a cost-plus basis agreed with the tax administration.

Zug holding AG with family office services

CHF 100,000 minimum share capital

A holding company owning operating businesses and investments, with participation relief on qualifying dividends and gains, and the family office as a division or subsidiary. Suits entrepreneurial families relocating headquarters to Zug.

Trust or Liechtenstein foundation above the Swiss office

A foreign discretionary trust, a private trust company or a Liechtenstein foundation holds the family wealth and the Zug office provides services to it. Family-tie rules extend to offices controlled by a family trust or foundation, supporting continuity across generations.

FINMA-licensed multi-family office

CHF 100,000 minimum capital

A portfolio manager licensed under FinIA and supervised by a supervisory organisation, able to serve several families. Suits families who want to share costs, admit other families or professionalise the office.

Fund or pooling vehicle

A Swiss limited qualified investor fund (L-QIF) or a foreign fund such as a Luxembourg RAIF/SCSp for pooled family investments. Suits families with co-investors or several branches wanting unitised ownership and clear reporting.

05

Step-by-step process

  1. 1

    Perimeter and tax analysis

    Confirm whether every person served has family ties under FinIO Art. 4, whether AMLA applies, and model Zug corporate, wealth and individual taxes for the principals.

  2. 2

    Structure design

    Decide on the office company, holding entities, trust, PTC or foundation, fund layer and governance bodies, and agree a cost-plus or service fee model.

  3. 3

    Advance tax ruling

    Where useful, obtain a ruling from the Zug Cantonal Tax Administration on the office's remuneration, holding income and, for relocating individuals, lump-sum taxation.

  4. 4

    Incorporation

    Notarise the articles, pay in share capital to a capital deposit account, register in the Zug commercial register and file beneficial owner data in the Transparency Register.

  5. 5

    Banking, office and staff

    Open bank and custody accounts, lease office space, appoint board members and hire staff, applying for work permits for non-EU/EFTA hires where required.

  6. 6

    Licensing where needed

    For an MFO, affiliate with a supervisory organisation and file the FINMA portfolio manager application; join an SRO if AMLA applies without FINMA supervision.

  7. 7

    Governance and ongoing compliance

    Adopt a family charter, investment policy and committee, and maintain annual accounts, tax filings, CRS/FATCA reporting and UBO updates.

06

Typical documents

  • Certified passports and proof of residence for family members, directors and officers
  • Family tree evidencing the family ties of every person to be served
  • Source-of-wealth and source-of-funds documentation with supporting evidence
  • Beneficial ownership and control chart, including any trust, foundation or PTC
  • Notarised articles of association, founding deed and capital deposit confirmation
  • Commercial register application and Transparency Register beneficial owner filing
  • Business plan and service agreement between the office and the family entities
  • Advance tax ruling request (remuneration model, holding income) where applicable
  • For an MFO: FINMA licence application, organisational regulations, CVs and criminal record extracts of managers, capital and insurance evidence
  • Residence and work permit applications for relocating principals and staff
07

How Legal Wealth helps

Legal Wealth helps families decide whether a Zug single family office, a licensed multi-family office or a combined Swiss–Liechtenstein structure fits their goals. We map family ties against the FinIA exemption, coordinate with Swiss tax advisers on rulings and lump-sum taxation, prepare source-of-wealth files, organise incorporation, banking and Transparency Register filings, and support residence permits and family governance documents. Our approach is compliance-first and discreet, with legal and tax opinions delivered by licensed Swiss professionals; enquiries are welcome at info@legalwealthglobal.com.

Enquire with Legal Wealth
08

Frequently asked questions

Does a single family office in Zug need a FINMA licence?

No, if it manages solely the assets of persons with family or business ties as defined in FinIA Art. 2(2)(a) and FinIO Art. 4. Once it manages assets for unrelated families on a commercial basis, a portfolio manager licence is generally required.

Is there a minimum amount of assets for a Swiss family office?

No legal minimum applies to a single family office. A licensed portfolio manager must hold minimum capital of CHF 100,000, and the AG itself requires CHF 100,000 share capital (GmbH CHF 20,000).

What corporate tax does a Zug family office pay?

Ordinary taxation applies: a combined effective profit tax of roughly 11.7–11.8% in the city of Zug, plus a low cantonal capital tax. Qualifying dividends and capital gains on participations benefit from participation relief, and service fees to the family must be at arm's length.

Does AMLA apply to a single family office?

It can. An office with powers of disposal over others' assets may be a financial intermediary, and the scope of family exemptions under AML rules is narrower and less settled than under FinIA. Each set-up needs a specific analysis and, where caught, SRO affiliation.

Can a Swiss family office use a trust?

Yes. Switzerland has no domestic trust law but recognises foreign trusts under the Hague Convention, and Swiss companies can act as trustee or private trust company. Many families combine a Zug office with a common-law trust or a Liechtenstein foundation.

Can the family relocate to Zug?

EU/EFTA nationals can usually obtain residence under the free movement agreement. Non-EU nationals may obtain residence for important cantonal fiscal interests, often combined with lump-sum taxation, which in Zug is subject to cantonal minimum tax bases. Permits are discretionary.

Contact

Let’s discuss your project

Share a few details and we will come back to you with next steps. All enquiries are treated confidentially.

Emailinfo@legalwealthglobal.com

We usually reply within one business day.

Sending opens your email app with your message ready to send to info@legalwealthglobal.com.