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Luxembourg trust: how it works and how to set one up
A Luxembourg trust usually means a trust governed by another country's law that is recognised in Luxembourg, because the country has no trust law of its own for creating one; it does have the fiducie, a fiduciary contract. Ask us which papers to gather first.
Reviewed by a senior trust administrator, updated
Key facts
- Trust structure
- No domestic trust; foreign trusts recognised through the Hague Convention[1]
- Governing law
- Law of 27 July 2003 on trusts and fiduciary contracts[1]
- Trustee requirement
- Fiduciary in a fiducie must be a financial institution that the law lists[1]
Numbers in brackets point to the Sources list at the end of this page.
Swipe sideways to see the whole diagram.
- SettlorSets up the structure and transfers assets into it
- transfers assets under a trust deedTrusteeHolds the assets and manages them under the trust deed
- holds and distributesBeneficiariesPeople who benefit from the trust under its terms
- Trustee holds legal titleTrust assetsThe property held in the structure
Roles and notes
| Part of the structure | What it does |
|---|---|
| Settlor | Sets up the structure and transfers assets into it |
| Trustee | Holds the assets and manages them under the trust deed |
| Beneficiaries | People who benefit from the trust under its terms |
| Trust assets | The property held in the structure |
- The settlor transfers assets to a trustee under a deed governed by the law the deed names.
- Luxembourg recognises a trust governed by foreign law, and also has its own fiduciary contract, the fiducie.
- In a fiducie the fiduciary must be a financial institution that the law lists.
- A protector, if the deed creates one, can be asked to consent to key trustee decisions.
What a trust in Luxembourg is
Luxembourg has no trust law of its own for creating a domestic trust. A trust governed by another country’s law can still be recognised there, and a statute of 2003 deals with both trusts and fiducie contracts.
The text is published on the Legilux portal. Your lawyer confirms how it applies to your deed.
So the term covers one of three things. It may be a foreign-law trust with a trustee or assets in Luxembourg, a fiducie, or a different vehicle such as a family wealth company.
The settlor transfers assets to the trustee, and the trustee holds them for the beneficiaries that the deed names or describes.
Some goals fit other tools better. A settlor who wants a local holding vehicle may be pointed to a company or a fiducie instead, and we say so at the first review.
Who a trust in Luxembourg suits
This service suits families who already hold a foreign-law trust and need a trustee or administration in Luxembourg, and owners of businesses who plan for succession.
Luxembourg lies between Belgium, France and Germany, so cross-border families from those neighbours may be among them.
Reasons that could bring people to this structure include:
- They hold assets in Luxembourg and want one set of records for the trust.
- They want a European location for a trust governed by the law of another place.
- They plan the succession of a business and want the trustee to read a letter of wishes.
- They compare Luxembourg with a trust-law place such as Jersey and want sourced facts, not sales copy.
Any enquiry tied to a Luxembourg resident or a Luxembourg asset goes through client acceptance first, and we say early if we cannot take the case.
Your own lawyer confirms the structure is suitable and lawful where you live, and your tax adviser at home confirms what you must report.
What the trustee does
Under the deed the trustee is the legal owner of the assets. It decides on distributions, records each decision and keeps accounts that a beneficiary or a bank can ask to see.
Who may act as trustee for a Luxembourg connection depends on the structure. In a fiducie the fiduciary must be a financial institution that the statute lists (source: Legilux, Law of 27 July 2003 on trusts and fiduciary contracts).
For a foreign-law trust, the deed names the trustee. The law page lists the sources behind each fact.
A trustee in Luxembourg holds office. We coordinate the papers and reporting, and the trustee decides under the deed. Our part is client onboarding, identity checks, the documents you see and the reports you receive.
The trustee’s part is the decisions, the formal records and the filings that the deed and the law require. A trust company in Luxembourg is, in everyday speech, a firm that takes on this part for clients.
You send us requests, we prepare the papers, and the trustee decides.
Where you live and pay tax shapes your own reporting, so your tax adviser tells you what to file. Which reporting duties apply to your trust is a point your tax adviser confirms.
Documents and steps to start
We start with identity papers, proof of address, a short account of how the wealth arose and papers showing the source of funds. We also ask for beneficiary details and a first view of the deed.
The steps run in a fixed order:
- Enquiry, then client acceptance and identity checks.
- Design of the structure with your lawyer, including the governing law of the deed.
- Drafting of the deed by a law firm, and your letter of wishes; French or German papers may need a translation.
- Signing, then acceptance of office by the trustee.
- Transfer of assets, to the trustee or to a company that the trust owns, once the trustee has accepted office.
After signing, the lawyers, the trustee and the banks set the pace, and we give a checklist and a list of open items, not a promised date.
Cost depends on the parties, the assets and the drafting. The cost guide lists the factors that drive the total. We publish the set-up fee for a standard trust; annual administration, event-based work and third-party charges are quoted after we review your case.
The step-by-step guide lists the papers in order.
Facts we reviewed, with source and date
The statute of 27 July 2003 is published on the Legilux portal, with the date shown in the table.
No page here promises a tax outcome. The plain-answers page covers the practical questions, and our service page on wealth structuring and asset protection gives the wider picture.
Frequently asked questions
Who can set up a trust in Luxembourg?
A trust is set up under a law that the deed names, and Luxembourg recognises it; the country does not offer a domestic trust. In principle an adult who owns the assets can be a settlor, and your lawyer confirms the structure suits you at home.
How do I start in Luxembourg?
Start with a short note on your plans. The order of work is the same for every enquiry: acceptance and identity checks, structure design with your lawyer, drafting, signing and funding. We reply with the papers to gather and the next steps.
Who can help me start in Luxembourg?
You need a trustee, a law firm to draft the deed under the governing law, and your own lawyer and tax adviser at home. We coordinate the identity checks and the papers between them, and keep one list of open items for all four parties.
What is a fiducie?
It is a contract in which a person transfers assets to a fiduciary who holds them separately for a stated purpose. Luxembourg regulates it by statute, and the fiduciary must be a financial institution that the law lists. It is not a trust.
What affects the cost of the structure?
Structure matters more than the place: parties, assets, drafting and the trustee's yearly work. The set-up fee for a standard trust is shown on the costs page. The rest, including annual administration, event work and third-party costs, is quoted after we review your case. Any estimate follows written terms.
Sources
- Legilux: Law of 27 July 2003 on trusts and fiduciary contracts, read 2026-11-05.