Zug Inheritance Tax Cases
Last updated: 15 Nov 2025
Zug Inheritance Tax — Cases & Illustrative Scenarios
Concise case‑style notes and practical hypotheticals on Zug’s inheritance tax (Erbschaftssteuer): situs for nonresidents, valuation, exemptions, and allocation across heirs. These examples help you anticipate how the tax office may approach typical fact patterns.
Case 1 — Nonresident with Zug apartment
Facts. Decedent domiciled abroad owns a rental apartment in Zug; cash/securities are held abroad.
Issue. Whether Zug taxes the real estate and requires a local inheritance‑tax return.
Takeaway. Yes — as Zug‑situs immovable property. Intangibles held abroad are typically outside the Zug base. Maintain land‑register extract, appraisal and debt allocation.
Case 2 — Art collection stored in Zug
Facts. Nonresident decedent stores tangible artworks in a Zug facility.
Issue. Are the artworks Zug‑situs and taxable?
Takeaway. Tangible movables physically in the canton are generally included; storage/transport records and inventory lists are key.
Case 3 — Bequest to non‑registered partner vs. children
Facts. Significant share to a long‑term partner; children receive the remainder.
Issue. Treatment of exemptions/preferences for descendants and possible taxation of the partner’s share.
Takeaway. Model partner’s portion as taxable at a class‑based rate; descendants may enjoy extensive relief. Evidence of relationship status and allocation avoids disputes.
Case 4 — Business with fixed facility in Zug
Facts. Decedent holds a controlling stake in a company with a fixed facility in Zug.
Issue. Allocation of value to Zug due to functional nexus.
Takeaway. Expect allocation to Zug where local operations and records tie assets to the canton; provide financials and explain valuation method.
Practical Notes
- Valuation: Fair market value at date of death; independent appraisals help withstand scrutiny.
- Debt allocation: For nonresidents, only liabilities tied to Zug‑situs assets typically reduce the local base.
- Inter‑cantonal coordination: Prevents double taxation when multiple cantons are involved.
- Extensions & instalments: Request in writing before due dates; keep approvals.
For case‑specific modelling, try the Zug Inheritance Tax Calculator or book a fixed‑fee consult.