Setting up Trust Funds in Czech Republic


You can shift protection of your assets to a higher level through the establishment of trust funds, as it’s useful to set up a trust fund. The history of trust funds dates to the middle ages when some of the first funds had a clear task to keep the property within the family and to ensure it was not at risk, while the selected individuals could benefit from property through a certain form of asset management that will be completely anonymous. The legislation related to the Czech trust was modified when the Civil Code was amended related to the incorporation of a trust, as a trust must know that this business form was not available, although at the moment, investors may incorporate this vehicle. The re-codification of civil law has introduced a trust fund, adopting the concept originating from Anglo-Saxon tradition, whose legal systems can offer a vehicle for business constituted by a founder and administrated by a trustee.


According to the legislation, a trust is a vehicle, so investors who want to start the legal procedure in Czech Republic will need to sign the main statutory document of the entity, without having a legal personality, and the trust can be incorporated by company formation representatives. An essential feature is that it may be only defined by its purpose, enabling the autonomous set of assets for public purpose, so whilst any assets cease to be owned upon the constitution, they do not become assets owned by anyone, such as a beneficiary, but only to satisfy the needs of those who seek to reduce a burden. Do not hesitate to contact us for the unnecessary paperwork.

The trust fund is a form of administration where the property ceases to be the property of the funder and becomes independent, and can be used as a tool for the long-term management of corporate property or for the safe structuring of the transfer within the family as it may be created by any person who has reserved his part thereof for a purpose. The founder, the trustee and the beneficiary will state the purpose of the trust, as it may be registered for specific purposes through a procedure action in Czech Republic and set it up for the activities such as investments, private interests, and public interests or funding medical events, so contact our team in Czech Republic for in-depth advice on legal stipulations. In addition, in favor of family members, it enables foreign citizens to evade inheritance taxes by means of founding a trust, which may also be constituted to hide the property under Czech law.


The advantage is that if the property is immovable property, 4% tax is not applied, but we distinguish two groups with regards to their purpose: for private or public purpose, and it is typical that public oversight is excluded when the trust fund is terminated, as there are no property rights allocated to the fund, which must be registered in registers under the name of the trustee.

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