Setting up a trust in Switzerland involves understanding eligibility for non-residents, typical funding requirements of USD 500,000 or more, and how Swiss-administered trusts are treated for tax purposes.
Switzerland does not create domestic trusts, but it fully recognizes and administers foreign trusts, making it a preferred jurisdiction for wealth structuring.
Questo articolo tratta di:
- Are trusts taxed in Switzerland?
- Why do people put money in Swiss accounts?
- What type of legal system does Switzerland have for trusts?
- Who can set up a trust in Switzerland?
- What are the pros and cons of Switzerland trust?
- What are the steps to set up a trust in Switzerland?
Punti di forza:
- Switzerland recognizes foreign trusts and offers world class trustees and regulation.
- You can establish a trust administered in Switzerland even as a non-resident.
- Taxation depends on the trust type and the residence of the settlor and beneficiaries.
- Swiss trusts offer stability and professionalism but come with strict compliance requirements.
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Are trusts legal in Switzerland?
Yes, Swiss trusts are legal. Although Switzerland does not have its own domestic trust statute, it recognizes and enforces foreign trusts under the Hague Trust Convention.
This means a trust established under English, Jersey, Cayman Islands, Singapore, or other common law systems is fully valid when administered in Switzerland.
Swiss courts and regulatory bodies accept the trust structure, uphold the trustee’s fiduciary duties, and apply the governing law chosen in the trust deed.
Local trustees are experienced and usually operate through regulated gestione patrimoniale firms, trust companies, or private banks.
Can I set up a trust in Switzerland?
You can open a trust in Switzerland as long as you are legally competent and able to transfer assets into a trust governed by foreign trust law.
Eligibility is simple. Expats, non-residents, business owners, and high-net-worth individuals regularly set up foreign trusts and appoint Swiss trustees or Swiss-based gestori patrimoniali.
The assets do not need to be located in Switzerland.
They can include global investment portfolios, company shares, real estate outside Switzerland, intellectual property, or bankable assets.
Switzerland only administers trusts and does not create them under Swiss law, so the trust must be established using a foreign legal system, typically common law jurisdictions.
How much money do you need to put into a trust?
There is no legal minimum amount required to create or administer a trust in Switzerland, but in practice, Swiss trustees and private banks typically work with clients who place at least USD 500,000 to USD 3 million in assets under administration.
For more complex family-office style structures or multijurisdictional holdings, the practical minimum may rise.
Switzerland is generally viewed as a premium jurisdiction, so trusts with smaller holdings may be better suited for lower-cost jurisdictions.
Does Switzerland tax trusts?
Switzerland does not impose tax on the trust itself, as trusts have no legal personality under Swiss law.
Instead, taxation depends on the type of trust, the residence of the settlor, and the beneficiaries.
- Revocable trusts: If the settlor retains control or influence, the trust is treated as transparent, and income or assets are taxed in the hands of the settlor.
- Irrevocable discretionary trusts: For non-resident settlors, the trust is generally not taxed in Switzerland. However, distributions to Swiss resident beneficiaries may trigger income, wealth, or inheritance tax.
- Fixed-interest trusts: Tax obligations depend on whether the beneficiaries are Swiss residents or the settlor retains rights, and may be subject to income, wealth, or gift/inheritance tax.
The key point is that Swiss law recognizes foreign trusts and generally does not tax the trust itself.
However, international tax planning is essential, as residents of Switzerland or other countries may have obligations on distributions or income derived from the trust.
What is the benefit of having your money in a Swiss trust?
The main benefits of placing wealth into a Switzerland-administered trust are stability, privacy, and world class gestione degli asset.
Switzerland is known for its highly skilled trustees, strong banking system, and robust regulatory environment.
Additional advantages include:
- Reliable enforcement of foreign trust law
- Strong asset protection when paired with a robust governing law such as Jersey or Cayman
- Professional governance, reporting, and oversight
- Access to globally respected investment platforms
- Predictable and neutral tax environment
This combination makes Switzerland attractive for long-term succession planning and multi-generational wealth management.
What are the disadvantages of putting money in a Swiss trust?
The main disadvantages of putting money in a Swiss trust are cost, complexity, and administrative requirements.
Switzerland is a premium jurisdiction, so trustee fees and banking costs are higher than in many offshore centers.
Other considerations include:
- Trustees require extensive due-diligence documentation
- Switzerland does not offer its own domestic trust law, so a foreign governing law must be chosen
- Some cantons may tax distributions depending on beneficiary relationships
- Privacy standards are strong but still subject to international information-exchange treaties
For smaller estates, the cost may outweigh the advantages.
How to start setting up a trust in Switzerland?
To start setting up a trust in Switzerland you create a trust under foreign trust law, appoint a Swiss trustee or administrator, transfer assets, and complete compliance steps.
1. Choose the governing law.
Most HNWIs use English, Cayman, Jersey, Guernsey, Singapore, or BVI trust law.
2. Select a Swiss trustee or administrator.
Swiss trust companies, fiduciaries, or private banks often serve as trustees or investment managers.
3. Draft the trust deed.
This establishes the terms, beneficiaries, powers, and structure using the foreign governing law.
4. Provide KYC and due diligence.
Swiss institutions require detailed documentation for the settlor, beneficiaries, and related parties.
5. Transfer assets.
Fund the trust by transferring bankable assets, company shares, or other holdings.
6. Put governance in place.
This may include appointing protectors, investment advisors, or family governance committees.
7. Coordinate international tax advice.
This ensures compliance in the settlor’s and beneficiaries’ countries of residence.
8. Ongoing administration.
Trustees manage investments, distributions, reporting, and regulatory obligations.
Conclusione
Switzerland offers a stable and professional environment for administering foreign trusts, making it a compelling option for globally mobile families and high-net-worth individuals.
While the jurisdiction provides expert trustees, strong asset protection, and flexible governance, careful planning is essential to address funding, tax, and compliance considerations.
A Switzerland-administered trust is most effective when integrated with international tax advice and a clear estate strategy, ensuring long-term wealth preservation and cross-border continuity.
Domande frequenti
What is the strongest form of trust?
The strongest form of trust is typically a discretionary trust governed by a robust jurisdiction such as Jersey, Guernsey, or Isole Cayman.
These trusts offer high levels of asset protection, flexibility, and firewall protection against foreign claims.
Who legally owns the assets held in a trust?
In most trusts, including those administered in Switzerland, the trustee legally owns and controls the assets, managing them according to the terms of the trust deed and their fiduciary duties.
The beneficiaries hold equitable or beneficial rights, meaning they are entitled to the income, distributions, or other benefits from the assets but do not have legal control over them.
In rare cases, such as a bare trust, the beneficiary may effectively hold both legal and beneficial ownership, but this is the exception rather than the rule.
For standard discretionary, fixed-interest, or revocable trusts, legal ownership remains with the trustee.
Which bank is best for trusts?
Swiss private banks such as UBS, Julius Baer, Lombard Odier, and Pictet are widely used for trust administration and investment management.
The best choice varies based on investment needs and the trustee’s structure.
What is the 5% rule for trusts?
The 5 percent rule generally refers to the IRS rule in the United States stating that if a trust beneficiary has withdrawal rights exceeding 5 percent annually, those rights may create taxable consequences.
It does not originate from Switzerland but is relevant for US persons involved in trusts administered in Switzerland.
How much is inheritance tax in Switzerland?
Switzerland has no federal inheritance tax. Cantonal rules apply.
Most cantons impose zero inheritance tax for direct descendants, while taxes may apply for distant relatives or unrelated beneficiaries.
Rates vary significantly by canton.
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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.
