Establish a Dutch Trust

International residents are offered a range of solutions for wealth management in case they plan to live in the Netherlands. Foreign citizens can open various types of Dutch companies, of which the most appropriate forms are the BVs (companies with limited liability or LLCs) and the private foundations. If you would like to establish a trust you should keep in mind that the Dutch legislators have not yet adopted a particular law in relation to this structure, but they do recognize the international trust concept.

Our Dutch consultants in company formation can provide you with detailed information on the recognition of international trusts within the local regulatory framework.

The trust concept in Dutch legislation

As already mentioned no particular law exists with respect to the opening of Dutch trusts. However, there are international regulations applicable to this tool for asset protection. Therefore, international investors have the possibility to establish private Dutch foundations equivalent to trusts. The private foundation differs from other kinds of foundations because it allows its founders to use it as an estate planning solution.

In line with local regulations, the trust ensures that a clear difference is made between legal and beneficial asset ownership. As clarified in the international regulations, the legal owner is the person or company that is establishing the trust. On the other hand, the beneficial owner is the actual beneficiary of the established trust.

Opening a Dutch trust

Both international residents and companies can open Dutch trusts by preparing and signing a notarized contract with a custodian (trustee). The functions of trustees are usually performed by established trust companies. They guarantee the safety of any assets stated in the contract. The owners of Dutch investment funds usually use the same companies as custodians.

Therefore Dutch trusts and investment funds are treated in the same way by the tax authorities. The government in the Netherlands has adopted a special regime for Segregated Private Capital to ensure efficient taxation.

If you need more details on the tax status of Dutch trusts, please, do not hesitate to contact our team. Our agents in company formation would be glad to assist you.

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