Set Up a Trust in France

France is one of the European countries in which establishing a trust is one of the possibilities for those interesting in asset protection solutions. The French fiducie, created by Law No. 2007-211 of 19 February 2007 (with trust reporting and tax rules added in 2011), also provides for a new taxation regime for trusts in France. The legislation also brought several changes in the reporting requirements for the trustees.

Our company formation consultants in France can offer full information on the Trust Law. We can also assist those interested in opening a company in France.

What is a trust, according to the French legislation?

France did not have a law on the establishment of trusts (fiducie) until 2007, however it did recognize international trusts, which is why the government at the time created the legal framework which would allow wealthy individuals to benefit from enhanced estate planning tools.

Under the French Trust Law, the trust is a structure for asset protection and tax minimization purposes by a settlor – the person creating it. However, French trust reporting and tax rules (arts. 792-0 bis and 1649 AB CGI) apply when at least one of the following requirements must be met:

• –          the settlor is a French resident;
• –          the beneficiary or beneficiaries are French residents;
• –          the property conveyed in the trust deed is registered in France.

Our company registration agents in France can assist those interested in setting up a trust.

How to create a trust in France

The trust is not created by registration with the French Trade Register, but it is established by drafting and signing a written fiducie contract (registered with the tax office within one month) through which the possessions of the settlor are placed in the hands of the trustee who will administer them on behalf of the beneficiaries. A French fiducie cannot be created by will: it is set up by law or contract, and a fiducie made with donative intent is void (Civil Code arts. 2012-2013).

Discover the services offered by one of our accountants in France, if you want to open and develop a business in this country. Our specialists have experience in bookkeeping, payroll, annual financial statements, debt monitoring, tax registration, and many more. You can also benefit from our HR administration services, considering how important it is to recruit quality people for the company.

Reporting requirements for trustees in France

Furthermore, the trustee – a credit institution, investment firm, insurer or lawyer (avocat), as required by art. 2015 Civil Code, in charge of the administration of the assets held in trust- is subject to certain reporting requirements with the French tax authorities:

• –          offering information about any changes brought to the trust;
• –          offering information about the content of the trust deed;
• –          offering information on the value of the assets held in the trust.

For full information on the requirements to establish a trust, do not hesitate to contact our French company formation advisors.\