Estonia does not have a trust legislation, as such it is not possible to open a trust here. However, given its membership in the European Union, foreign trusts are recognized here. Moreover, it is possible to be the Estonian settlor or beneficiary in a trust created abroad.
Below, our Estonian company formation agents explain the position of the national authorities in relation to trusts, as well as the alternatives you have if you decide to establish a similar entity here.
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Laws applicable to trusts in Estonia
While it is not possible to create a trust in Estonia, foreign ones are recognized here in accordance with EU Directive 2015/849, which provides for:
- the creation of the Ultimate Beneficial Owner (UBO), which in Estonia is maintained by the Business Register;
- the provision of trustee services.
| Quick Facts | |
|---|---|
| Availability of Trust Law (YES/NO) | No, Estonia does not have legislation to govern the creation of trusts. |
|
Possibility to create a trust in Estonia (YES/NO) |
No, it is not possible to establish trusts in Estonia. |
|
Recognition of foreign trusts (YES/NO) |
Yes. |
| Possibility for Estonian citizens to create trusts in other countries (YES/NO) | Yes, Estonian citizens can set up trusts in other countries. |
| Possibility for Estonians to be beneficiaries in foreign trusts (YES/NO) |
Yes, Estonian nationals can be nominated as beneficiaries. |
| Possibility to have Estonian assets held in a trust (YES/NO) | Yes, among them is real estate.
|
| Trustee services availability (YES/NO) |
Yes, trustee services are available in Estonia. |
| Reporting requirements for trustees (if any) |
Yes, they must report beneficiaries in foreign trusts to the Trade Register. |
| Availability of an Ultimate Beneficial Owner Register (YES/NO) |
Yes, it is maintained by the Companies Register. |
| Option to draft a will instead of a trust in Estonia (YES/NO) | Yes. |
| Other alternatives to trusts in Estonia (if any) |
– pension fund investments, – life insurance policies, – gifts and donations. |
| Taxation of Estonian settlors and beneficiaries |
Estonian settlors and beneficiaries may be subject to taxation depending on the assets held in a trust. |
| Advantages of trust recognition in Estonia |
– applicability of EU regulations, – no taxes imposed on trusts, – availability of trustee services. |
| Requirements to comply with international laws (if any) |
Yes, anti-money laundering rules apply. |
| Support in creating alternative vehicles to trusts (YES/NO) | Yes, setting up a company in Estonia is also an alternative to a trust our specialists can help you open. |
This means that as an Estonian citizen, you can open a trust in another country, and if you decide on an EU member state, you must also submit the name of the beneficial owner(s) to the Companies Register.
You can obtain more information on the laws applicable in this case with our company registration consultants in Estonia.
Uses and benefits of trusts
Trusts are non-legal entities created with the purpose of protecting one’s assets. To open a trust as an Estonian, you must know the following:
- the settlor is the person creating or disposing the establishment of the trust;
- the beneficiary is the party entitled to the assets inscribed in the trust deed;
- the settlor must also appoint a trustee, a legal representative who will carry to fruition the dispositions of the former in respect to the assets.
What does this mean for Estonian citizens? It means that they can open trusts in other countries, and in the creation deed, they can:
- appoint Estonian trustees and beneficiaries;
- list as assets Estonian real estate.
After establishment, the trustee has the obligation to report the beneficial owner to the Business Registry.
We also have an infographic on this subject below:
Alternatives to trusts in Estonia
Most of the time, this entity is used for asset protection and even as an inheritance tool. As such, the main instrument you can use to create an alternative to a trust in Estonia is the testament. In this case:
- the settlor will become the testator;
- the beneficiary or beneficiaries will remain the same in the will as in a trust deed;
- the trustee will also fulfill the same role as in a trust.
In respect to the assets, these can take any form, starting with real estate to money in bank accounts or other goods.
Other alternatives to opening a trust in Estonia are:
- investments in pension funds;
- life insurance policies;
- donations and gifts that can be claimed before or after the death of the donor, based on specific conditions.
You can also open a company in Estonia, in which the shareholders can benefit from the profits. Our agents can help you set up a business. Moreover, there are many other countries that do allow the creation of trusts and have well-established regulations in this regard. Some of these jurisdictions are: Singapore, Hong Kong, Panama (our partners: BridgeWest Panama), Mauritius, etc. In case you are interested in establishing a trust fund in one of these jurisdictions, you should know that we can put you in touch with our affiliates who can handle this process for you.
We also have a video on this topic below:
Recognition of foreign trusts in Estonia
Even if there is no possibility to open a trust in Estonia, foreign ones are recognized here, in accordance with the Hague Conference on Private International Law Convention, according to the International Bar Association.
Wealth management statistics in Estonia
According to the latest data:
- by the end of 2025, the assets administered in the wealth management industry in Estonia are expected to reach USD 3.06 billion;
- the sector is dominated by the financial advisory sector with a market volume of USD 2.91 billion;
- by 2029, the value of the assets managed is predicted to grow by 0.64% annually.
We also have Estonian accountants in our team ready to help you with financial matters. Also, our local representatives can assist in filing for a crypto license in Estonia.
Feel free to address our local agents for support in creating an alternative to trusts in Estonia.