How does a community of heirs sell a house in the canton of Zug?

Who owns the house after a death?

All heirs together, not individual heirs in fractional shares. Until the estate is divided, the heirs form a community of heirs and are joint owners of the assets of the estate, which they may dispose of only jointly (Art. 602 para. 1 and 2 of the Swiss Civil Code, ZGB). Nobody holds a share in the house that he or she could sell alone.

On inheritance, ownership passes by operation of law, even before the entry in the land register. The community of heirs can dispose of the property, however, only once it is entered in the land register as owner (Art. 656 para. 2 ZGB). The basis for the entry is the certificate of inheritance, which the competent authority issues to the heirs on request; appointed heirs receive it only after one month has passed since the notification to the parties concerned, and only if nobody contests their entitlement (Art. 559 para. 1 ZGB). The mortgage passes with the house: the heirs are jointly and severally liable for the debts of the deceased (Art. 603 para. 1 ZGB).

Who has to agree to the sale?

Everyone. Any disposal of an asset in joint ownership requires the unanimous decision of all joint owners (Art. 653 para. 2 ZGB), and the purchase contract for the property is such a disposal. A single heir can block the sale; conversely, nobody can push it through alone. Nor can anyone dispose of a fractional share of the property while the community exists (Art. 653 para. 3 ZGB).

For the sale this means: the purchase contract is notarised as a public deed, in the canton of Zug by the municipal clerk's office of the municipality in which the house is located (§ 4 para. 2 of the Zug Notarisation Act, BGS 223.1), and every heir approves it, in person or through an authorised representative. The form the power of attorney must take is determined by the notary, who has to examine it (§ 13 para. 1 Notarisation Act); clarify this before the appointment, especially if heirs live abroad. At the request of one co-heir, the competent authority can also appoint a representative for the community of heirs until the estate is divided (Art. 602 para. 3 ZGB).

What happens if one heir does not want to sell?

Then any other heir can demand the division of the estate, at any time and without giving reasons, unless a contract or the law obliges him or her to remain in the community (Art. 604 para. 1 ZGB). For a property that cannot be divided without loss of value, the law sets out the route: it is to be allocated undivided to one heir; if the heirs cannot agree, the property is to be sold and the proceeds divided (Art. 612 para. 1 and 2 ZGB). If one heir demands it, the sale takes place as an auction, either public or among the heirs only (Art. 612 para. 3 ZGB).

The surviving spouse can demand that the house in which the spouses lived be allocated to him or her against his or her share, or alternatively a usufruct or a right of residence (Art. 612a para. 1 and 2 ZGB). The court can postpone the division temporarily if carrying it out immediately would significantly damage the value of the estate (Art. 604 para. 2 ZGB). In practice the dispute usually resolves itself once a neutral value is on the table.

Which value applies if one heir takes over the house?

The market value at the time of division, not the tax value and not the price the parents paid (Art. 617 ZGB). If the heirs cannot agree on this value to be credited, it is estimated by officially appointed experts (Art. 618 para. 1 ZGB).

This makes the valuation the pivot of every division of an estate that includes a property: whoever takes over pays out the co-heirs on this basis; whoever sells measures the offers against it. A valuation with the IAZI/CIFI models derives this market value from comparable transactions and an earnings calculation; the methods are explained in the guide to hedonic valuation and capitalised earnings value.

Is property gains tax due on inheritance, and on a later sale?

Not on inheritance: a change of ownership through succession, division of the estate or legacy defers the property gains tax (§ 190 para. 1 lit. a of the Zug Tax Act, StG ZG). A takeover by one heir as part of the division does not trigger the tax either. It falls due only when the community of heirs or the heir who took over sells to a third party.

The municipality then calculates as if the deceased had sold: the gain and the holding period are measured from the last taxable transfer without deferral (§ 193 para. 2), and the purchase price is the price of that transaction (§ 195 para. 3). The parents' years of ownership therefore count. If that acquisition dates back more than 25 years, the heirs may use the market value 25 years ago instead of the purchase price; the creditable holding period is then 25 years (§ 195 para. 2).

Worked example (round numbers, without creditable expenses): the parents bought the house in Baar in 1990 for CHF 600,000; the three children sell it in 2026 for CHF 1,800,000. Calculated with the original purchase price, the gain is CHF 1,200,000, which is 200% of the investment costs over 36 years or about 5.6% a year; the rate is at the minimum of 10% and the tax is CHF 120,000. If the heirs use the market value 25 years ago, in the example CHF 900,000, the gain falls to CHF 900,000; the rate remains 10%, the tax is CHF 90,000, which is CHF 30,000 per child. The full calculation with all creditable costs is in the guide to property gains tax in the canton of Zug; the property gains tax calculator gives the figure for your sale.

Do the heirs pay inheritance tax on the house in the canton of Zug?

Spouses, cohabiting partners, direct descendants and stepchildren as well as parents and step-parents do not: in the canton of Zug they are exempt from inheritance and gift tax (§ 175 para. 1 StG ZG). The tax administration presumes a cohabiting partnership where a marriage-like relationship has existed for at least five years in a shared home; the taxpayers must provide the evidence. Children who inherit their parents' house therefore pay no inheritance tax on it. Zug has no separate inheritance tax act; the tax is governed by §§ 172 et seq. of the Tax Act.

For everyone else, such as siblings, nieces and nephews or unrelated persons, the rule is: the person who receives the assets is liable to the tax (§ 176 para. 1), even if only the property is located in the canton (§ 172 para. 1 lit. c). Debts that pass with the estate, such as the mortgage, are deducted (§ 179 para. 1 lit. a). The rate is progressive and is multiplied by a factor according to the degree of kinship (§ 180 para. 1 and 2):

Of the basic rate, sons- and daughters-in-law and parents-in-law pay 20%, siblings 40%, grandparents, uncles and aunts and the children of siblings 60%, grandchildren of siblings and the children of uncles and aunts 80%, all others 100% (§ 180 para. 2). The municipality's inheritance tax form must be returned within 90 days (§ 183 para. 1).

How do you proceed in practice?

1. Certificate of inheritance and land register: have the community of heirs entered as owner; without the entry there is no disposal (Art. 656 para. 2 ZGB).
2. Clarify the mortgage: if a fixed-rate mortgage is running, clarify the early repayment penalty with the bank. Any heir can demand that debts be paid or secured before the division (Art. 610 para. 3 ZGB).
3. Obtain a neutral valuation: the market value under Art. 617 ZGB as the basis for a takeover or for the pricing strategy.
4. Record the decision: have the sale, the minimum price and the representation signed by all heirs, with powers of attorney in the form the notary requires.
5. Market and notarise: the procedure is the same as for any sale, see How does selling a house in Switzerland work?; at notarisation the deposit for the property gains tax must be paid or equivalent security provided (§ 202 para. 2 StG ZG).
6. Distribute the proceeds: first the mortgage, taxes and costs, then division according to the shares in the estate; the cost items are shown in What does it cost to sell a house in the canton of Zug?.

Particularities of the Zug municipalities: Selling property in the canton of Zug.

What this means for your sale

In sales by communities of heirs, success rarely depends on the market; it depends on the understanding among the heirs. That is why we start with the valuation, not with the listing: Rudat AG values with the IAZI/CIFI models that Swiss banks use. A figure that every heir can follow replaces many discussions and can serve as the value to be credited if the heirs agree on it (Art. 617 ZGB); without agreement, officially appointed experts estimate the value (Art. 618 para. 1 ZGB).

We then run the sale so that the community has to decide at one point only: one contact person for all heirs and one joint decision on the minimum price and the powers of attorney. The marketing includes professional photography, drone footage, a complete sales brochure and a 360° tour (in German), which heirs and prospective buyers who are not on site also use. We accompany you up to notarisation, coordinate the notary, the land registry and the deposit for the property gains tax, and prepare the settlement according to the shares in the estate. Examples are in our references (in German); how to reach us for a first conversation is on About us.

This guide does not replace tax or legal advice. The assessment by your municipality is decisive.

Sources

This guide does not replace tax or legal advice. The assessment of your municipality is decisive.