Jurisdictions · Compare
Switzerland vs Luxembourg Family Office: Rules and Tax 2026
Our view
Neither country requires a family office licence to serve one family. Switzerland's Financial Institutions Act does not cover managing only the assets of people with family or business ties, and Luxembourg's 2012 Family Office Law excludes services for a single family. Serving several families as a business needs a FINMA licence in Switzerland if the office manages their assets, and a CSSF-authorised Family Office PSF or another listed profession in Luxembourg. Luxembourg offers the SPF, which pays a 0.25% subscription tax instead of income tax but may hold only financial assets. Swiss taxes depend on the canton and commune. Both reserve part of an estate for close heirs. Luxembourg's investor permit is being repealed, and Swiss residence is a cantonal decision. Families who want the SPF or an EU base will look at Luxembourg.
Key differences
- Serving several families: a FINMA portfolio manager licence and supervision by a supervisory organisation in Switzerland, against a CSSF-authorised Family Office PSF (EUR 50,000 capital) or another listed profession in Luxembourg.
- Holding vehicle: companies and foundations, with federal profit tax of 4.25% for foundations, in Switzerland, against the SPF in Luxembourg, which pays a 0.25% subscription tax (EUR 1,000 to EUR 125,000 a year) and may hold only financial assets.
- Corporate tax: 8.5% federal profit tax plus cantonal and communal profit tax averaging just under 9% in 2026, and a capital tax in nearly all cantons, in Switzerland, against 23.87% combined in Luxembourg City from 2025, plus 0.5% net wealth tax (reported by Tiberghien).
- Personal income tax: a federal top rate of 11.5% plus cantonal and communal tax in Switzerland, against 42% plus a surcharge of up to 9% in Luxembourg (45.78% at the top, by our calculation).
- Inheritance tax: cantonal in Switzerland, with none in Obwalden and Schwyz and spouses and descendants exempt in most cantons, against none on direct-line heirs' legal shares or for spouses and partners registered for at least 3 years, and up to 15% plus surcharges for others, in Luxembourg.
- Residence: no investor visa found in Switzerland, where the canton decides, against an investor permit from EUR 500,000 in Luxembourg that bill 8586, adopted by the Chamber of Deputies on 14 October 2026 but not yet published on 19 October 2026, would repeal.
Side by side
| Topic | Switzerland | Luxembourg |
|---|---|---|
| Licence | No licence: FinIA excludes managing solely assets of people with family or business ties | No Family Office authorisation for an office serving one family (Article 1, 2012 law) |
| Minimum wealth | No wealth minimum in the FinIA exemption; it turns only on family or business ties | No minimum family wealth in the 2012 law or the CSSF conditions |
| Who counts as family | Relatives in the direct line and to the 4th collateral degree, spouses, partners, co-heirs | One individual, one family or wealth entities they own or benefit from; family undefined |
| Serving several families | FINMA portfolio manager licence plus supervision by a supervisory organisation | Regulated professions or a CSSF-authorised Family Office PSF (EUR 50,000 capital) |
| Law and courts | Swiss federal law and FINMA; taxes at federal, cantonal and communal level | Luxembourg statutes; 2012 Family Office Law and 1993 financial sector law, CSSF |
| Substance | No rule found for single family offices; licensed managers need Swiss domicile | Family Office PSF: head office in Luxembourg, two managers, approved auditor |
| Holding vehicles | AG, GmbH, foundations; no Swiss trust, foreign trusts recognised (Hague) | SPF, ordinary companies, investment funds (UCI, SIF, RAIF) |
| Corporate tax | Federal 8.5% of net profit plus cantonal and communal tax (average just under 9%, 2026) | 16% corporate income tax from 2025; 23.87% combined in Luxembourg City; 0.5% wealth tax |
| Family office tax | No family office tax regime found; participation deduction for stakes of at least 10% | No family office regime; SPF pays 0.25% subscription tax (EUR 1,000 to 125,000) |
| Personal income tax | Federal top rate 11.5% (2026) plus cantonal and communal tax; lump-sum option, not Zurich | 42% above EUR 234,870 (scale since 2025) plus up to 9% surcharge: 45.78% top rate |
| Inheritance tax | Cantonal only, none in Obwalden and Schwyz; spouses and descendants exempt in most cantons | 0% on direct-line legal shares and spouses; up to 15% plus surcharges; gifts 1.8% direct |
| Wills and succession | Spouse or partner and descendants get half their intestate share as a protected portion | Children reserved 1/2, 2/3 or 3/4 of the estate (1, 2, or 3 or more children) |
| Residence | No investor visa found; cantonal tax route (Zurich: about CHF 1 million tax a year) | Investor permit EUR 500,000, 3m or 20m; repeal voted 14 Oct 2026, not yet published |
| Time to set up | No official figure found | Family Office PSF: CSSF decision within 6 to 12 months; no figure for an SFO |
| Official fees | CHF 420 to register an AG or GmbH, CHF 210 a foundation; no family office licence fee | No official figure found |
