Singapore VCC insights

Swiss Trust Company or Singapore Trust Company: Where to Administer a Family Trust in 2026

By VCC Editorial Team · Published 27 October 2026

Short answer: A Swiss trust company administers foreign-law trusts under a Financial Market Supervisory Authority (FINMA) licence, because Switzerland has no trust law of its own. A Singapore licensed trust company can administer trusts governed by Singapore law itself. Choose by where the family lives, which law should govern the deed, and how each centre taxes settlors and beneficiaries.

This article is general information only and is not legal, tax or investment advice. For matters needing legal advice, we work with a panel of experienced Singapore law firms.

Families with European roots and Asian operations often get two proposals for the same trust: a Swiss trust company in Geneva or Zurich, or a Singapore licensed trust company. One administers trusts under a foreign law; the other works within its own trust law. This article compares them on legal basis, licensing, transparency, tax and day-to-day administration. Sources were checked on 27 October 2026 against official Swiss federal and Singapore government sites.

Can a Swiss trust company administer a trust governed by Swiss law?

No. There is no Swiss-law trust, so a Swiss trustee always administers a trust governed by a foreign law, typically English, Jersey, Guernsey, Cayman or Singapore law.

The Federal Office of Justice puts it plainly (our translation from German): “Switzerland so far has no trust law of its own. Since the entry into force of the Hague Trust Convention, foreign trusts are recognised in Switzerland.” The convention entered into force for Switzerland on 1 July 2007. A draft amending the Code of Obligations, prepared under Motion 18.3383, went to consultation on 12 January 2022. On 15 September 2023, the Federal Council concluded that there was “currently no sufficient political consensus”, noting in particular that the proposed tax rules were clearly rejected in consultation. The Council of States wrote the motion off on 12 December 2023 and the National Council did so on 27 February 2024.

In practice, the governing law and the supervising court sit outside Switzerland; the Swiss trustee supplies administration, not trust law. A Singapore trust company can offer a Singapore-law deed, Singapore administration and the Singapore courts as the natural forum.

How does FINMA licence a Swiss trust company?

Since FinIA came into force on 1 January 2020, a person acting as a trustee on a commercial basis needs a FINMA licence before starting business. Ongoing supervision then passes to a supervisory organisation (SO) authorised by FINMA.

FINMA describes trustees as entities that “on a commercial basis manage or hold a separate fund for the benefit of the beneficiaries or for a specified purpose based on the instrument creating a trust”. To be licensed, a trustee must:

• be a sole proprietorship, commercial enterprise or cooperative entered in the commercial register;
• be domiciled in Switzerland;
• be suitably organised, with adequate risk management and internal controls;
• hold sufficient equity capital or securities;
• prove that it is affiliated to an SO.

Its managers must also guarantee irreproachable business conduct, have a good reputation and hold the required professional qualifications.

A trustee that also manages portfolios needs a separate portfolio manager licence, and ceasing business requires FINMA’s prior approval. FINMA publishes a list of licensed trustees, last updated 26 October 2026.

Singapore’s model is more direct. The Monetary Authority of Singapore (MAS) licenses and supervises trust companies itself under the Trust Companies Act 2005; there is no intermediate supervisory body. Our guide to the trust business licence in Singapore covers the MAS file in detail.

What does a Singapore licensed trust company need?

To hold a trust business licence, a company needs S$250,000 of paid-up capital or qualifying assets, at least two resident managers, and a business plan that MAS accepts. MAS states the annual fee as S$4,000.

MAS assesses fitness and propriety, track record, financial and professional indemnity insurance requirements, and compliance systems. At least one resident manager must have five years of relevant experience; the others need at least three. The application fee is S$1,000 and is non-refundable. For a straightforward and complete application, MAS expects to take no more than six months.

Is there an exemption for a family’s own trustee in each centre?

Yes, in both centres, but the mechanics differ. Switzerland disregards family-related activity when assessing commerciality. Singapore exempts a PTC but requires it to work with a licensed trust company.

FINMA states that “certain activities linked to legal exemptions (e.g. the exclusive management of assets of family-related persons) are not to be taken into account” when assessing commerciality. FINMA’s 2020 presentation on the new regime lists, under article 4 of the Financial Institutions Ordinance (FinIO), “single family offices / private trust companies that are directly or indirectly controlled by persons who have family ties with one another”, covering relatives by blood or marriage, spouses and co-heirs.

In Singapore, regulation 4(1)(a) of the Trust Companies (Exemption) Regulations exempts any private trust company. Regulation 2 defines a PTC as a corporation whose sole purpose is to provide trust business services for a specific trust or trusts, where every settlor is a connected person in relation to the other settlors, every beneficiary is a connected person in relation to the settlor or is a charity, and the company does not solicit or serve the public. Regulation 4(2) requires the PTC to engage a licensed trust company to conduct the necessary AML and countering the financing of terrorism (CFT) checks, and regulation 4(3) makes breach an offence. Our private trust company guide walks through the structure.

So a Swiss family trustee outside licensing has no supervisor, while a Singapore PTC stays tied to a licensed trust company and MAS’s AML notice.

Swiss trust company or Singapore: who sees the beneficial ownership information?

Both centres require trustees to know who stands behind the trust. Neither puts trusts on a public register.

Switzerland’s Federal Act on the Transparency of Legal Persons and the Identification of Beneficial Owners entered into force on 1 October 2026, together with the revised Anti-Money Laundering Act. The Federal Office of Justice runs the register, which is “non-public”. Access is limited to the control office, authorities named in the Act, financial intermediaries and certain advisers covered by the Anti-Money Laundering Act, and only for their statutory tasks.

The reporting duty applies to Swiss companies limited by shares, limited liability companies, cooperatives and collective investment companies (SICAV, SICAF and limited partnerships for collective investment). It also covers foreign legal entities that have a registered Swiss branch, are effectively managed in Switzerland, or own or acquire Swiss real estate; they have six months from 1 October 2026 to report. The register’s FAQ confirms that foundations are not subject to the Act. Trusts are not on the list of reporting entities. Instead, control exercised through a trust counts as indirect control when a reporting company identifies its beneficial owners. A Swiss holding company owned by a trust therefore has to look through the trust.

In Singapore, MAS Notice TCA-N03 sets the AML rules for licensed trust companies and PTCs, according to the Ministry of Law (MinLaw). Other trustees fall under Part 7 of the Trustees Act 1967 and the Trustees (Transparency and Effective Control) Regulations 2017. These apply to any express trust governed by Singapore law, administered in Singapore, or with a trustee resident in Singapore. Those trustees must:

• obtain and verify information on all settlors, trustees, protectors, beneficiaries and persons with power over the trust;
• identify the effective controllers of those parties;
• keep records for at least five years after ceasing to act;
• tell banks and other specified persons that they act for a trust before entering a business relationship or a transaction above S$20,000.

MinLaw’s guidance note of 12 August 2024 states that breach is punishable by a fine of up to S$1,000.

Both centres exchange account data under the Common Reporting Standard (CRS); Switzerland lists Singapore as a multilateral exchange partner from 1 January 2024. See our comparison of Swiss and Singapore banking secrecy for what confidentiality survives.

How are trusts with a Swiss trustee taxed compared with Singapore?

Switzerland does not tax the trust or the trustee on trust assets. It attributes them to the settlor or beneficiaries, depending on how the trust is set up. Singapore taxes trust income at trustee level unless resident beneficiaries are entitled to it.

Swiss practice comes from Circular 30 of the Swiss Tax Conference, dated 22 August 2007. The Federal Tax Administration (ESTV) adopted it for direct federal tax and withholding tax in Circular No. 20 of 27 March 2008. Its main points:

• A trust has no legal personality and is not treated as a taxable entity.
• A trustee resident in Switzerland is not taxed on the trust’s assets or income, only on its own fees.
• If the settlor is Swiss-resident when an irrevocable discretionary trust is created, the assets and income remain attributed to the settlor, as for a revocable trust. The circular gives a list of retained powers, such as replacing the trustee or vetoing decisions, that point towards revocable treatment.
• If the settlor lived abroad at creation, distributions to a Swiss-resident beneficiary are generally taxable income when paid, unless the beneficiary proves they are a return of the capital originally contributed.
• In an external tax audit, the trustee cannot rely on professional secrecy, even where the trustee is a lawyer.

The Inland Revenue Authority of Singapore (IRAS) e-Tax Guide “Income Tax Treatment of Trusts (Third Edition)”, published on 30 January 2026, states that under section 35(11) of the Income Tax Act 1947 trust income “is the statutory income of the trustee”. It is taxed at the prevailing corporate rate as a final tax, with distributions then treated as capital. Resident beneficiaries entitled to the income instead receive tax transparency under section 43(2). Foreign trusts (section 13F) and prescribed locally administered trusts (section 13N) are governed by separate provisions. Our taxation of trusts guide sets out their conditions.

In Switzerland, the residence of the settlor and beneficiaries drives the outcome, not the trustee’s location. In Singapore, the trustee’s location and the type of trust bring Singapore’s own rules into play.

Which centre suits which family?

Where the family lives usually decides it. Where the advisers sit matters less. The table sets out common profiles.

Family profile	Swiss trust company	Singapore licensed trust company	Point to resolve first
Settlor resident in Switzerland	Familiar with Circular 30; assets may stay attributed to the settlor	Possible, but Swiss attribution still follows the settlor	Whether the trust gives any tax benefit at all while the settlor is Swiss-resident
Asian settlor, beneficiaries in Asia, European bank accounts	Close to Swiss custody, but the deed must use a foreign governing law	Singapore-law deed, administration and courts in one place	Governing law and forum for disputes
Beneficiaries split between Europe and Asia	Swiss-resident beneficiaries taxed on distributions under Circular 30	Resident beneficiaries entitled to income may receive transparency treatment	Each beneficiary’s residence and home-country trust rules
Family wants its own trustee company	Family-related activity disregarded for commerciality; no SO supervision	PTC exemption, with a mandatory licensed trust company for AML checks	How much regulatory oversight the family and its banks want
Trust holds a Singapore family office or Variable Capital Company (VCC)	Workable; Singapore entities keep their own registers	Same jurisdiction as the investment structure	Where trustee decisions are actually taken

How should a family choose between the two?

Settle the governing law and the tax residence of the people first. Choose the trustee’s location last.

1. Map the current and expected tax residence of the settlor and every beneficiary. Under Circular 30, a Swiss-resident settlor or beneficiary changes the result regardless of where the trustee sits.
2. Choose the governing law. A Swiss trustee needs a foreign law; a Singapore trustee can work under Singapore law, the Trustees Act 1967 and the Singapore courts.
3. Decide whether the family wants a licensed professional trustee or its own trustee company, and test the Swiss family-ties exemption or the Singapore PTC definition against the actual settlors and beneficiaries.
4. Confirm the trustee’s status on FINMA’s list or MAS’s Financial Institutions Directory before signing.
5. Map registers and reporting: CRS classification of the trust, Swiss transparency register filings by any Swiss entity it owns, and the beneficial ownership records of any Singapore company or VCC.
6. Record where trustee decisions are taken and keep minutes there, so that administration, tax residence and supervision tell the same story.

For the wider comparison between the two centres, including cantonal taxes and the 2025 Swiss inheritance tax vote, see Singapore vs Switzerland family office.

Frequently asked questions

Does Switzerland have its own trust law in 2026?

No. The Federal Council abandoned the Swiss trust project on 15 September 2023, and Parliament wrote off the motion by 27 February 2024. Foreign-law trusts are recognised under the Hague Trusts Convention.

Does every Swiss trustee need a FINMA licence?

Only those acting commercially: more than CHF 50,000 gross earnings a year, more than 20 contractual partners, or trust funds above CHF 5 million at any time. Family-related activity covered by a legal exemption is not counted.

Are trusts entered in the Swiss transparency register?

Trusts are not among the reporting entities listed by the register. A company controlled through a trust must still identify its beneficial owners, and the register is not public.

Can a Singapore PTC act without any licensed trust company?

No. The PTC is exempt from licensing, but regulation 4(2) of the Trust Companies (Exemption) Regulations requires it to engage a licensed trust company for AML and CFT checks.

Sources

• FINMA: Trustees (licensing requirements and commercial thresholds)
• Federal Office of Justice: Einführung eines Schweizer Trusts
• Swiss transparency register: Fragen und Antworten
• ESTV Circular No. 20 of 27 March 2008, with Swiss Tax Conference Circular 30
• Ministry of Law: Express Trusts

Raffles Corporate Services helps families that are weighing Swiss and Singapore trustees, with VCC incorporation, family office set-up and ongoing compliance in Singapore, and works alongside licensed trust companies and law firms on the trust itself. Email hello@rafflescorporateservices.com or Call/SMS/WhatsApp +65 8501 7133, or visit Raffles Corporate Services.

Last reviewed: 27 October 2026. The Editorial Team, Variable Capital Companies Act.