Open a Trust in Ireland

Through a trust in Ireland, a person can transfer the ownership of various types of assets to another person. The trust can also be used as a vehicle through which other types of entities can benefit from the property of a person and this can be the case when the trustee provides the right to use his or her assets for charitable purposes. 

What is the law regulating the Irish trusts? 

• • the Irish asset protection trusts can be set up by foreigners, as there aren’t any restrictions in this sense;
• • more importantly, Irish asset protection trusts can be owned 100% by foreigners;
• • it can also be used as a means for planning and managing a person’s real estate property;
• • once the trust is incorporated, it can benefit from a perpetual life (there are no requirements concerning the trust’s duration);
• • foreigners can benefit from tax exemptions, as long as certain conditions are met (for example, the assets are located outside Ireland).

What are the taxes for a discretionary trust in Ireland? 

• • a tax that is charged only once, which is imposed at a rate of 6% from the value of the trust;
• • this tax can be reduced to 3% in specific conditions (the assets are distributed in a period of 5 years);
• • a yearly tax (payable by 31st of December of each year) imposed at a rate of 1%;
• • provided that the trust has an Irish tax residency, it is also imposed with the income tax, applicable at a rate of 20%;
• • the trust can also be liable to an income tax surcharge of 20% if the income is not distributed to the trustees.