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Knowledgebase
Open a Trust in Switzerland
Alex Buri, Off-Counsel
10 April, 2025
Table of Contents
Although Switzerland did not originally recognize the concept of a trust under its national legal system, recent legislative developments have made it possible to administer and recognize trusts within the country. Traditionally, the Swiss legal framework follows Roman law, which does not include legal provisions for trusts, unlike the Anglo-Saxon system, where trusts are a long-established legal instrument.
Despite the absence of a domestic trust law in the Swiss Civil Code, Switzerland made a significant step forward by ratifying the Hague Convention on the Law Applicable to Trusts and on their Recognition. As a result, foreign trusts are now recognized in Switzerland, allowing for their administration under Swiss jurisdiction.
Our specialists in Swiss company formation can offer tailored guidance on how these international rules apply locally and help navigate the trust recognition process.
When establishing a Swiss company formation, it’s essential to consider various factors such as the structure, legal requirements, and international agreements. Understanding how trusts can be integrated into your business structure, especially in relation to asset protection and tax optimization, is crucial for effective planning and compliance.
Despite the absence of a domestic trust law in the Swiss Civil Code, Switzerland made a significant step forward by ratifying the Hague Convention on the Law Applicable to Trusts and on their Recognition. As a result, foreign trusts are now recognized in Switzerland, allowing for their administration under Swiss jurisdiction.
Our specialists in Swiss company formation can offer tailored guidance on how these international rules apply locally and help navigate the trust recognition process.
When establishing a Swiss company formation, it’s essential to consider various factors such as the structure, legal requirements, and international agreements. Understanding how trusts can be integrated into your business structure, especially in relation to asset protection and tax optimization, is crucial for effective planning and compliance.
What is the purpose of a trust in Switzerland?
Trusts are commonly used for wealth management, estate planning, charitable giving, and business succession. In Switzerland, although trusts are not created under Swiss domestic law, they are recognized and administered under foreign law, providing investors with access to this flexible legal structure.
A trust can be used to:
A trust can be used to:
- Protect personal or family wealth across generations;
- Transfer ownership of assets while preserving control or specific use conditions;
- Provide for minor or incapacitated family members;
- Support philanthropic goals through charitable trusts;
- Facilitate business continuity and succession planning.
In some cases, trusts are used alongside a Swiss Holding Company to hold and manage family-owned businesses or substantial investment portfolios. This structure offers strategic tax advantages and long-term asset consolidation across generations.
Quick Facts – Trusts in Switzerland
Aspect | Details |
Legal basis | Hague Trust Convention (ratified by Switzerland) |
Trusts governed by | Foreign trust law (e.g., UK, Jersey, BVI) |
Recognized in Swiss law? | Yes (but not created under Swiss law) |
Used for | Asset protection, succession, tax optimization, philanthropy |
Administered by | Swiss-based trustees |
Reporting obligations | Subject to Swiss AML and KYC rules |
Taxation | Depends on settlor’s and beneficiaries’ residence |
Confidentiality | High, but with increasing transparency due to international agreements |
Our team of Swiss trust experts assists in evaluating whether a trust is suitable for your personal or corporate goals and helps identify the optimal jurisdiction and trustee services.
Revocable trusts in Switzerland
A revocable trust is one in which the settlor retains the right to alter, amend, or cancel the trust at any time. These types of trusts offer flexibility in the management of assets and are commonly used for wealth planning and asset consolidation.
Although Switzerland does not provide for the creation of trusts under its domestic law, it recognizes revocable trusts established under foreign legislation. These can be administered by Swiss-based trustees, provided they act according to the governing foreign law.
Although Switzerland does not provide for the creation of trusts under its domestic law, it recognizes revocable trusts established under foreign legislation. These can be administered by Swiss-based trustees, provided they act according to the governing foreign law.
Key features of revocable trusts:
- The settlor maintains control over the trust during their lifetime;
- The trust can be amended or dissolved at any moment by the settlor;
- Assets in the trust remain part of the settlor’s estate for tax and legal purposes;
- Offers privacy and efficient estate distribution but provides limited protection against creditors.
To facilitate proper administration and custody of trust assets, many clients open a dedicated Swiss bank account in the name of the trustee. This ensures regulatory transparency, secure fund management, and full compatibility with Swiss AML standards.
In Switzerland, revocable trusts are most often used by individuals who:
- Want to retain control over assets but simplify inheritance;
- Intend to change beneficiaries or terms in the future;
- Seek a structure for managing international investments.
Our Swiss legal consultants offer full support with establishing revocable trusts via foreign legal frameworks and ensure compliance with Swiss financial regulations, including anti-money laundering (AML) and due diligence rules.
Irrevocable trusts in Switzerland
An irrevocable trust is a type of trust in which the settlor permanently relinquishes ownership and control over the transferred assets. Unlike revocable trusts, irrevocable trusts cannot be amended or revoked once established, except under specific legal or contractual conditions.
In Switzerland, foreign irrevocable trusts are recognized and may be administered by licensed Swiss trustees, provided they adhere to the applicable foreign law. These trusts are particularly useful for long-term wealth protection, tax optimization, and generational planning.
In Switzerland, foreign irrevocable trusts are recognized and may be administered by licensed Swiss trustees, provided they adhere to the applicable foreign law. These trusts are particularly useful for long-term wealth protection, tax optimization, and generational planning.
Key features of irrevocable trusts:
- The settlor gives up all rights to the assets placed in trust;
- The trust cannot be modified without the consent of all beneficiaries (and sometimes not even then);
- Assets are removed from the settlor’s taxable estate, subject to certain legal frameworks;
- Offers high levels of asset protection against creditors and legal claims.
Irrevocable trusts are typically used in Switzerland for:
- Inheritance planning across generations;
- Securing family business continuity;
- Providing for beneficiaries in multiple jurisdictions;
- Enhancing tax efficiency under applicable international rules
Our fiduciary advisors work closely with clients and international law firms to ensure proper trust drafting, asset transfer, and regulatory compliance in Switzerland.
Get in touch
Please contact us directly or via email if you require assistance. We are here to help you move forward.
What should one know on Swiss trustees?
Swiss trustees play a vital role in the administration of trusts recognized under foreign law. Although Switzerland does not have a domestic trust law, it permits the appointment of trustees based in Switzerland, provided they operate under the rules of the applicable foreign jurisdiction.
Key responsibilities of Swiss trustees:
- Manage the trust assets in line with the terms of the trust deed and the best interests of beneficiaries;
- Maintain transparent accounting and ensure regulatory compliance under Swiss financial law;
- Apply anti-money laundering (AML) standards and perform due diligence on all parties involved;
- Fulfill fiduciary duties by acting loyally, diligently, and independently.
As of 2020, Switzerland introduced licensing and registration requirements for professional trustees through the Financial Institutions Act (FinIA) and Financial Services Act (FinSA).
Trustees must:
- Obtain authorization from FINMA (Swiss Financial Market Supervisory Authority);
- Implement robust risk management and compliance procedures;
- Ensure ongoing training and qualification of fiduciary staff.
This requirement reflects the central role of FINMA Switzerland in supervising financial intermediaries, including professional trustees. FINMA ensures that all fiduciary activities related to trusts are compliant with Swiss financial market legislation, including FinIA and FinSA.
Swiss trustees are often selected for their reputation of professional discretion, financial expertise, and familiarity with cross-border asset management.
Our firm maintains relationships with licensed Swiss trustees and offers assistance in appointing the right professional to manage your revocable or irrevocable trust in full compliance with applicable laws.
Swiss trustees are often selected for their reputation of professional discretion, financial expertise, and familiarity with cross-border asset management.
Our firm maintains relationships with licensed Swiss trustees and offers assistance in appointing the right professional to manage your revocable or irrevocable trust in full compliance with applicable laws.
FAQ - Frequiently Asked Questions about Trust in Switzerland
No, Switzerland does not create trusts under domestic law but recognizes and administers trusts established under foreign legal systems through the Hague Trust Convention.
A trust can be administered in Switzerland by Swiss-based trustees, but the trust itself must be created under the laws of a foreign jurisdiction.
The Hague Trust Convention, ratified by Switzerland, ensures recognition of foreign trusts and their legal effects under Swiss law.
A revocable trust allows the settlor to modify or cancel it at any time, while an irrevocable trust is permanent and offers stronger asset protection.
Taxation depends on the residency of the settlor and beneficiaries. Revocable trusts are typically taxed in the hands of the settlor, while irrevocable trusts may be treated as separate entities.
Yes, licensed Swiss trustees can manage trusts governed by foreign law, provided they follow fiduciary and financial compliance obligations under Swiss regulations.
Yes, under the Financial Institutions Act (FinIA), professional trustees must be licensed by FINMA and meet regulatory standards including AML compliance.
Trusts are used by high-net-worth individuals, international families, philanthropists, and business owners for estate planning, asset protection, and succession management.
Trusts administered in Switzerland offer a high degree of confidentiality, though increasing international transparency standards (e.g. CRS, FATCA) may apply.
Yes, trusts recognized in Switzerland can hold and manage international portfolios, real estate, and private business shares across jurisdictions.