Trustee Services

There is currently no Swiss substantial law on trusts and therefore no provision for a Swiss domestic trust. However, a trust can be established under foreign law and, since 2007 when Switzerland ratified the Hague Convention, trusts are recognised as a legal structure.

Generally, the trust itself is never subject to tax due to a lack of legal personality. Furthermore, trust assets and income cannot be attributed to the trustee or the protector. Therefore, trust a Swiss resident trustee can manage assets without triggering a tax liability on the trust assets and income. However, in certain cases Swiss residents will be liable to tax on the assets as well as the income.

In January 2022, the Swiss Federal Council published a draft Bill aimed at introducing trusts into Swiss law. The proposed provisions, which will be included in a new chapter of the Code of Obligations, will enable trusts to be used both to structure private assets and for commercial transactions.

Sovereign has more than 30 years’ experience of setting up and managing various types of trust around the world. Sovereign Trust (Switzerland) can, through our partners, act as trustees in Switzerland.