Services · Trusts & private foundations

Trust in Switzerland

Updated 6 October 2026

A trust under foreign law with a trustee in Zurich or Geneva. We choose the governing law, a licensed trustee and a bank, and review the family's taxes before setup.

Switzerland has no trust law of its own. Since 1 July 2007 the Hague Convention on the Law Applicable to Trusts and on their Recognition has applied in Switzerland, so trusts created under foreign law are recognised. At the same time Switzerland amended its Private International Law Act and its Debt Enforcement and Bankruptcy Act so that courts and creditors deal with trusts under clear rules.

In practice a Swiss trust is a trust governed by another country's law, such as Jersey, Guernsey or England, with a trustee working in Zurich or Geneva. Families choose it for Swiss banks, wealth managers and regulated trustees, while the governing law is chosen to fit the family's goals.

Will Switzerland get its own trust law?

Parliament asked the government to create a Swiss trust, and on 12 January 2022 the Federal Council put draft amendments to the Code of Obligations out for consultation. The consultation showed no consensus, especially on the tax rules. On 15 September 2023 the Federal Council decided not to prepare a bill, and Parliament withdrew the motion: the Council of States on 12 December 2023 and the National Council on 27 February 2024.

So in 2026 a trust for assets in Switzerland is still created under foreign law. Planning should not wait for a Swiss trust.

Who can act as trustee

Since 1 January 2020, under the Financial Institutions Act, anyone who manages trust assets in Switzerland on a commercial basis needs a licence from the Swiss Financial Market Supervisory Authority and must be supervised by a supervisory organisation authorised by it. To be licensed, a trustee must show a Swiss domicile, a suitable organisation and financial guarantees, and its managers must have an irreproachable reputation and the required qualifications.

For the family this means the trust assets in Switzerland are handled by a supervised firm rather than a private intermediary. We work only with trustees that hold this licence.

How to choose the governing law

• Purpose. Passing wealth to children, ring-fencing business risk, philanthropy or holding a family company stake need different trust terms.
• Flexibility. Some laws let the settlor keep more influence through a protector and a letter of wishes; others separate the settlor from the assets more strictly.
• The bank. Swiss banks review a trust under its governing law, so the chosen law should be familiar to them.
• Family taxes. The countries where the settlor and beneficiaries live matter most, not just where the trustee works.

Taxes

Switzerland has no separate trust tax: the consequences depend on the type of trust and on where the settlor and beneficiaries live. Tax rules were the main reason the Swiss trust law was dropped, so the tax authorities' approach to trusts remains unchanged. If any participant lives in Switzerland, we agree the trust's tax position with the cantonal tax office before the assets are transferred.

How a trust is set up

1. Reviewing the goal. We define the purpose, the beneficiaries and their countries of residence, and decide between a trust and a foundation.
2. Law and trustee. We choose the governing law and a licensed Swiss trustee.
3. Due diligence. The trustee and the bank check the settlor, the source of funds and the origin of the assets.
4. Trust deed. We agree the deed, appoint a protector and prepare a letter of wishes.
5. Assets and accounts. We transfer the assets, open accounts in Switzerland and then handle communication with the trustee and banks.

Why trusts are refused

• the trustee or bank will not take on a client without a verified source of funds;
• the settlor wants to keep full control of the assets, which defeats the purpose of a trust;
• the chosen governing law is one the bank does not work with;
• tax consequences in the family's country of residence were not worked out in advance.

Trust or foundation

If the bank or the family needs a legal person with a charter and a council, consider a Liechtenstein private foundation, which can be run from Switzerland through the same banks. If you need a trust with its own law in the country of administration, compare it with a Jersey trust.

Who a trust with a Swiss trustee suits

This structure is chosen by families whose wealth already sits in Swiss banks or is managed by Swiss professionals: a trust under Jersey, Guernsey or English law with a trustee in Zurich or Geneva lets the money stay where it is used to being, while using proven trust law. It suits large liquid wealth, securities and company shares.

A trust in Switzerland does not suit property in the country itself, nor those waiting for a Swiss trust law: there will not be one. It is also expensive for small sums: a trustee supervised by the Financial Market Supervisory Authority works for an annual fee.

Which assets go into the trust

Most often bank accounts and portfolios at Swiss banks, company shares and dividend rights. Property in other countries is usually held through a company whose shares belong to the trust. The transfer is documented in writing, after which the assets belong to the trustee, not the settlor, so transfer taxes in the country where the assets are located are checked in advance.

Can a Russian citizen set up a trust in Switzerland in 2026

Switzerland has joined EU sanctions against Russia and prohibited providing trust services where a settlor or beneficiary is a Russian citizen or a person living in Russia. The exception is Russian citizens with citizenship or a residence permit in Switzerland, an EU country or the European Economic Area. We check the status of each participant before choosing a trustee.

Taxes for Russian tax residents

For a Russian tax resident, such a trust is a foreign structure without legal personality. The tax office must be notified of its establishment within 3 months, and a settlor who keeps control becomes a controlling person: the trust's profit may be taxed in Russia, and a controlled foreign company notification is filed every year. The Russia-Switzerland double tax treaty has been partly suspended since August 2023. We prepare notifications and reporting on the controlled foreign companies page.

What it costs and how long it takes

The deed is drafted in a few days, but the whole process usually takes several weeks: the trustee and the bank check the settlor, beneficiaries and source of funds. We fix the quote in writing before work starts.

What we do

We choose the governing law and a licensed Swiss trustee, agree the deed and the protector's role, assemble the source-of-funds file, open accounts and support the trust afterwards. The cost depends on the governing law, the assets and the trustee, so a manager will calculate it in the chat.

What we do

• Trust establishment and maintenance

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