Inheritance and gift taxes in Zug: rates and terms (cross-border guide)

Context

Key facts

• Law: The inheritance and gift tax in the Canton of Zug is regulated by a specific law.
• Degree of kinship: The rates vary according to the degree of kinship.
• Exemptions: There are exemptions for spouses and descendants.
• Declaration and terms: The declaration and terms to be respected are specified in the law.

Inheritance and donation taxes in Zug: how it works

The inheritance and gift tax in the Canton of Zug is regulated by a specific law, which provides for a structure of rates and deadlines to be respected. This law is important for people who own property or assets in the Canton of Zug and wish to transfer them to their heirs or donate them to third parties.

Rates based on degree of kinship

Inheritance and gift tax rates vary according to the degree of kinship. For example, if the property is transferred to the spouse or descendants, it is not subject to inheritance tax. Conversely, if the property is transferred to non-descendants, such as grandchildren or great-grandchildren, the inheritance tax rate is 5%.

Exercise of exemptions

There are exemptions for people who own property in the Canton of Zug and wish to transfer it to their heirs or donate it to third parties. For example, if the property is transferred to the spouse or descendants, it is not subject to inheritance tax. In addition, if the property is transferred to persons who are not

Operational details

The inheritance and gift tax in the Canton of Zug is regulated by a specific law that establishes different rates based on the degree of kinship and exemptions for spouse and descendants. The declaration and the terms to be respected are specified in the law.

The law on inheritance and gift taxes of the Canton of Zug was amended in 2019 to adapt to new tax requirements and European rules on financial transparency. According to article 3 of the law, the heirs are required to declare the succession within six months from the date of death.

The law also sets different rates for donations, based on the degree of kinship between the donor and the beneficiary. For example, donations between spouses are exempt from tax, while donations to children or grandchildren are subject to a 20% tax rate.

A concrete example can help you better understand the law. Let's imagine we have a citizen of Zug who leaves a heritage of 500,000 Swiss francs to his children. Under the law, heirs are required to declare the succession within six months of the date of death and to pay a 20% tax on the value of the estate, which amounts to 100,000 Swiss francs.

Operational 📊 checklists:

• Check if the death occurred after January 1, 2019, in order to apply the new law on inheritance and gift taxes.
• Calculate the value of the assets left and check if they are subject to tax.

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Useful tools for your case

To verify your within/over 20 km tax scenario, use the net salary calculator and the tax return guide.

Key points

Switzerland is known for its tax complexity, and property transfer laws vary from canton to canton. In Zug, inheritance and gift taxes are regulated by a specific law that provides for different rates and terms. For more precise information on the declaration and the deadlines to be met, it is advisable to consult the specific law and contact a tax expert.

The law on inheritance and gift taxes in Zug was amended in 2020 with the entry into force of the federal law on heirs (LEGFE 0.141.69 of 20 December 2019). According to this law, the inheritance tax is 3.2% on the value of the property, while the gift tax is 2.2% on the value of the gift.

Example: If a citizen of Zug leaves a property worth CHF 500,000 to an heir, the inheritance tax will be CHF 16,000 (3.2% of CHF 500,000).

In addition, the law also provides for a gift tax of CHF 11,000 (2.2% of CHF 500,000) if the gift is greater than CHF 100,000.

To avoid having to pay these taxes, you can use some tax strategies. For example, you can create a trust that can receive the property without having to pay inheritance or gift tax.

However, it is important to note that these tax strategies require the advice of a tax expert and can have tax and legal consequences.

Here's an operational checklist to help you better understand taxes in

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.