Trusts, Foundations and Succession — conclusion

Conclusion of Part F

Part F has examined the private wealth economy of Zug. Chapter I described the wealthy residents of the canton, the taxation of their income, wealth and inheritances, the taxation according to expenditure for about 143 taxpayer units in 2021, the arrivals of wealthy families from abroad and the process of relocation. Chapter II described the professionals who manage their wealth. These are the independent asset managers and trustees, licensed by FINMA since 2020 and supervised by supervisory organisations, one of which has its seat in Zug, and the single family offices, whose number in Switzerland is estimated at about 300 with assets of 785 billion francs. The chapter also described the anti-money-laundering framework that applies to them. Chapter III examined the instruments of wealth structuring and succession: foreign trusts, recognised since 2007; the Swiss foundation and the prohibition of maintenance foundations, whose abolition Parliament has asked the Federal Council to propose; the family company; the revised Swiss succession law; and the rules of private international law.

The private wealth economy of Zug has grown with the canton's fiscal strategy. Unlike Geneva, the canton has no private banking tradition. Its wealth economy consists of independent professionals serving families directly. The regulation of the professionals since 2020 has brought the industry under closer supervision, which the extension of the anti-money-laundering obligations to advisers adopted in 2025 and the transparency register, both in force from 1 October 2026, will reinforce. The rejection of the inheritance tax initiative in 2025 confirmed the stability of the tax framework that attracts wealthy families to the canton. The scarcity of housing and the political debate about fairness set the limits of the strategy.

In five sentences

1. Zug is one of the three cantons with the highest average net wealth per taxpayer in Switzerland, at 1.3 million francs in 2021, attracting wealthy families with low income and wealth taxes, the taxation according to expenditure and the exemption of spouses and descendants from inheritance tax.

2. About 143 taxpayer units, paying 35.7 million francs, were taxed according to expenditure in Zug in 2021, while the rejection of the federal inheritance tax initiative on 30 November 2025 by about 78 per cent of the voters confirmed the stability of the framework.

3. Since 2020, portfolio managers and trustees have required a licence from FINMA and are supervised by supervisory organisations, one of which, FINcontrol Suisse, has its seat in Zug, while single family offices serving only one family remain outside the licensing regime.

4. Foreign trusts have been recognised in Switzerland under the Hague Convention since 1 July 2007, the Federal Council having abandoned the introduction of a Swiss trust in September 2023, while the prohibition of family maintenance foundations under Article 335 of the Civil Code is the subject of a parliamentary motion for its abolition that both chambers adopted in 2023 and 2024.

5. The revision of Swiss succession law in 2023, which reduced the compulsory portions of descendants and abolished those of parents, and the revision of the international succession rules in 2025 give the families of Zug considerable scope for succession planning.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of September 2025.