Setting up a trust in Finland is based on common law jurisdiction rather than a specific trust law in this country. In the following lines, you can find information abouttrusts in Finland, how to register them, and other important details. You can also benefit from the support of our specialists in company incorporation in Finland when opening such an estate planning entity.
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How to set up and register a trust in Finland
The first thing you need to consider is the type of trust and its objectives. In Finland, you can set up the following trusts:
- revocable,
- irrevocable,
- testamentary.
Such an estate planning tool is drawn up on the basis of a trust arrangement that can be legalized by a notary. As for the information that must be included in a trust in Finland, we mention:
- type of assets – money, properties, company shares, bonds, investment accounts, etc,
- name of the grantor/settlor who sets up the trust in Finland and its terms,
- name of the trustee who can be a natural person, company, organization, and who can manage the trust in question,
- name of the beneficiaries who will receive the assets mentioned by the trust.
It is good to know that trusts are different from wills in terms of transfers of assets. For example, the assets of a trust can be transferred at any time, compared to a testament where the wealth is distributed after the grantor/settlor dies.
You can opt for the services offered by our Finnish agents if you are interested in setting up a trust in Finland. We can represent you with a power of attorney, including for setting up a company in Finland.
What is the difference between revocable and irrevocable trusts in Finland?
Revocable trusts are also called living trusts in Finland. These legal agreements can be modified during the life of the settlor, which allows for a lot of flexibility. Irrevocable trusts, on the other hand, cannot be modified and are often used as tax planning tools. Opening an irrevocable trust is done in the presence of a real estate lawyer, preferably. Regardless of your choice, we advise you to consider the support of a specialist in the field to know exactly what the terms and conditions are for opening a trust in Finland.
Transferring assets to your trust in Finland
The main objective of a trust in Finland is to hold various types of assets. In this sense, real estate properties that you own, for example, can be transferred to the trust that you want toset up in Finland by creating a trust deed with your name and that of the beneficiaries. Other assets can also be transferred to a trust, such as valuable jewelry inherited in the family, as long as the document contains detailed information in this regard.
About taxation of trusts in Finland
Below, we present some information about trust taxation in Finland:
- dividends paid by Finnish listed companies owned by trusts are generally levied with a withholding tax rate ranging from 30% to 35%;
- if a trust is a corporate entity in Finland, it can be subject to the 20% tax-at-source rate on dividends.
We assist Finnish citizens and foreigners in setting up trusts in Finland. Plus, starting a company in Finland for trusts or any other purposes is also possible. Please explore our services and contact our experts in company incorporation in Finland for extra information.