is one of the jurisdictions where the trusts
are officially recognized as a legal entity which can be incorporated by foreign businessmen. Generally speaking, this type of vehicle is addressed to high net worth individuals who want to secure their assets. In the case of foreign businessmen, they must relocate a part of their financial assets
in order to set up a trust in Ireland
. Our Irish lawyers
can offer assistance on the registration procedure
, as well as on the main types of trusts
which are available to foreign investors.
Legislation for Irish trusts
An important factor in choosing Ireland for the setting up of a trust is the fact that the country has a long tradition in establishing this type of entity. The trust legislation in Ireland is rooted in the provisions stipulated by the English legislation. The Irish tradition referring to the registration of such entities dates back from 1893, when the local authorities enforced the Trustee Act. Since then, the Act has been modified several times, the latest change being introduced in 2008, under the Trustee Bill.
Types of trusts in Ireland
Investors who want to start a company
as a trust in Ireland
should know that the can choose from the following types of funds
• bare trusts – the assets of the trusts are held for a single beneficiary;
• fixed trusts –the settlor has the right to establish the way in which the income of the trust will be distributed amongst the beneficiaries;
• discretionary trusts – in this case, the assets are held for a group of beneficiaries, who can receive their entitlements as prescribed by the trustee.
Taxes applicable to trusts in Ireland
• income tax – applicable at a rate of 20% on the trusts’ income;
• capital acquisition tax –applicable at the rate of 33%;
• discretionary trust tax –imposed at a rate of 6%;
• capital gains tax.
Persons who are taking into account the registration of a trust in Ireland
and are interested in finding out more details on the trust law
are invited to contact our Irish law firm