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Netherlands trust questions, answered
Plain answers to common Netherlands trust questions. Dutch law has no trust of its own, so these answers cover how a trust that the Netherlands recognises works: the roles, the set-up, running it and reporting. Send us your question and we reply with what we can do.
Reviewed by a senior trust administrator, updated
Top questions
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Key facts
- Trust structure
- No domestic trust; foreign trusts recognised through the Hague Convention[1]
- Governing law
- Hague Trusts Convention (1985)[1]
- Foreign law rules
- Convention in force for the Netherlands since 1 February 1996[1]
Numbers in brackets point to the Sources list at the end of this page.
Basics
A trust that touches the Netherlands works like a trust elsewhere: a settlor transfers assets and a trustee holds them for others. Beneficiaries may benefit under the deed.
What sets this place apart is that it has no domestic trust. The Netherlands is a party to the Hague Trusts Convention, as the status table shows, and the law page sets out the sources.
How does a Netherlands trust work in practice?
The settlor signs the deed and transfers assets, while the trustee holds them and decides under the deed. Beneficiaries benefit as the deed says. Default rules come from the law the deed names, and your lawyer confirms how they apply to your facts.
What are the benefits of a trust in the Netherlands?
People point to one trustee for assets in several countries, recognition of foreign trusts under the Hague Convention, and written succession wishes. These are reasons to look, not results; whether they apply to you depends on your home country, your aims and the law the deed names.
What does a trustee do in the Netherlands?
The trustee is the holder of legal title and runs the trust under the deed: it keeps the accounts and records, holds meetings, passes resolutions and decides on distributions. Who may hold office as trustee is a point your lawyer confirms, and the deed names the one you choose.
How is this trust different from a will?
A will works from death. A trust can begin in your lifetime, with the trustee holding the assets from the day they are transferred. It does not replace a will, so your lawyer advises which assets belong in the trust and which in the will.
Who is involved in the structure?
The settlor creates the trust and transfers assets to the trustee. Beneficiaries may receive distributions, and where the deed creates a protector, that person can consent to key decisions. A law firm drafts the deed and your own lawyer reviews it.
Setting up
Documents set the pace of every set-up. You pass identity and source-of-funds checks, design the structure with your lawyer, approve the deed and sign.
Assets move only after the trustee accepts office. Proof of where the money came from usually takes longest, so start it early; the formation guide lists the papers step by step.
Which language is the deed written in?
The deed is drafted in a language that its governing law and the parties can work in, often English. Dutch papers may need an English translation. The law firm agrees the language of the deed with you and the trustee, and your lawyer confirms you understand it.
Do I need to visit the Netherlands to open a trust?
Whether anyone must attend in person depends on the document, since signing and witnessing rules can differ. We settle the signing method with the trustee and your lawyer before drafting ends, and confirm it in writing for you in plain words.
Can a holding company sit under the trust?
Yes, many do. The trustee holds the shares and day-to-day dealings run through the company, which adds formation and yearly charges. Your lawyer advises whether it suits your assets and where the company should be formed, before anything is signed.
Running the trust
After funding, the trustee runs the trust under the deed, and we prepare the papers for each request before it decides.
A deed followed in practice, with each decision recorded, keeps the structure sound. A settlor who treats trust money as personal cash is a warning sign.
Yearly charges apply; the cost breakdown explains each item. We publish the set-up fee for a standard trust or foundation; annual administration, event-based work and third-party charges are quoted after we review your case.
Can I be a beneficiary of my own trust?
It depends on the deed, the governing law and your home country's treatment. If you keep benefits and control, the legal and tax result can change, so your lawyer and tax adviser confirm it in writing with you before you sign.
Can I change the beneficiaries later?
That depends on whether the deed gives someone the power, such as the settlor, a protector or the trustee. How a change is made and recorded is also in the deed. We draft the papers; the trustee decides under the deed.
Does the trustee have to follow my letter of wishes?
No. The letter of wishes is a private note setting out how you hope discretion will be used, for instance on schooling or a family firm. The trustee reads it without being bound, so update it as things change and send the trustee each new version.
How often is the trust reviewed?
A review every year is sensible, plus one after any life event: a birth, a marriage, relocating or selling a business. We use the review for the trustee to confirm the assets it holds and to update your letter of wishes.
Can the trust move to another country later?
A move needs the deed and its governing law to permit it, and the trustee to agree. Because it can change the trustee, the reporting and the tax position, your lawyer and tax adviser look at it first. The deed should say how trustee or governing-law changes are made.
Reporting and tax
Your own tax position depends on where you live, so your tax adviser leads on it. Where the trustee is in the Netherlands, it handles the records and filings that apply to it.
At the start, a bank may ask for self-certification forms for the trust and for any company it owns.
Does a Netherlands trust report under CRS?
Whether the Common Reporting Standard reaches your trust, its trustee or a bank is a point your lawyer confirms for your case. We collect self-certification forms at the outset to plan deadlines, and the answer may differ between the parties.
Does my residency change the reporting?
It can. How you are treated as settlor or beneficiary, and what you file, is set by your home country. Give us your residence and tax country in the first message, and we send your adviser the actual drafts, not a summary of them.
Who do I ask about my own tax on a trust?
That is for your own tax adviser at home. We offer no tax advice and promise no outcome. The adviser receives the same drafts we send you, so the advice rests on the actual papers, not a summary of them, and also covers your yearly filings at home.
Getting help
Tell us in plain words what you plan to transfer and where you live. Our reply says what we can do and what your lawyer and tax adviser must check.
If you prefer the whole picture first, begin with the overview of how a trust works.
What should I send in a first message?
Tell us where you live and pay tax, what you expect to transfer, whether a company already holds the assets, and who should benefit. A brief note suffices; we answer with the papers to collect, and you can add your preferred document language.
Can my own lawyer work with you on the structure?
Yes, that is expected. Your lawyer checks the fit with your home situation and reviews the draft deed, and we share the checklist and drafts with your lawyer and tax adviser so everyone works from one set of papers, and your lawyer's comments go into each draft.