In Switzerland, there is no law on trusts, but the State recognizes the Trust Institute as such, it is one of the largest trust administration centers. Thus all the trusts that operate in Switzerland are governed by another jurisdiction which founder has chosen.
Since 2007, real estate assets located in the Swiss jurisdiction, may be included in the trust, thus the governor, who is the owner of the assets must record them in the Land Register. At the same time, during the preparation of a trust agreement you must take into account the need to obtain permission from the authorities on the transfer of assets, if the founders of the trust are non-EU residents.
Speaking of taxes, the owners of the assets are considered to be the founders and beneficiaries, not the trustee, to whom they belong only formally.
Trusts that operate in Switzerland can be divided into three categories:
Irrevocable trusts – are considered to be the founders and beneficiaries donations of assets. In this case the beneficial owners are taxed on donations within the capital.
Irrevocable discrete trusts – in this case the founder fully waive any rights to the assets. From the first version this one is different with the tax-sharing principles.
Revocable trusts – in this case there is no redistribution of financial assets. The owner and the taxpayer is considered to be the founder and income from trust activities which are transferred to beneficiaries, are considered as gifts.
Income from assets is taxed.
Trust managers in Switzerland do not need registration, but there is the principal professional association that works to improve the professional competence of the manager and works with proposals to improve their performance. Also, according to Swiss law, the trustee must explore the legality of the transaction; verify the identity of the contracting parties, and to report to law enforcement agencies on cases if he suspects something.