Trusts in Switzerland

Switzerland does not have domestic trust legislation, but it recognises and administers trusts established under foreign law with a level of expertise and regulatory rigour among the highest in the world. Discover the legal framework, practical process and associated obligations.

Since the ratification of the Hague Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition, which entered into force in Switzerland on 1 July 2007, trusts established under the law of a foreign jurisdiction (Jersey, Guernsey, the Bahamas, New Zealand, or English law, for example) are fully recognised in Switzerland. This recognition allows a Swiss-based trustee to administer trusts while benefiting from Switzerland's financial, legal and banking infrastructure.

Since 1 January 2020, the Federal Act on Financial Institutions (FinIA) subjects professional trustees to a licensing and supervisory regime under FINMA. This regulatory framework strengthens the credibility and security of trusts administered from Switzerland, while imposing strict requirements in terms of governance, compliance and anti-money laundering.

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