The Best Jurisdictions For Trusts In 2025

Switzerland retains the gold standard for trust setup in 2025, thanks to its reputation for financial confidentiality, a strong legal framework, and institutional stability. Swiss trusts are governed by the Hague Trust Convention, and while the country does not have a domestic trust legislation, it recognises foreign trusts and enables their administration within Swiss territory, reports Shannon Berkley.

Political stability, a thriving banking sector, and high-quality fiduciary services are among its strengths. However, Swiss transparency rules have strengthened following the Common Reporting Standard (CRS) and FATCA accords, which may prevent clients seeking complete discretion. Despite greater setup and maintenance costs, Switzerland is a preferred destination for HNWIs that value reputation, estate planning efficiency, and access to high-quality financial services. Real estate acquisition through trusts is permissible but severely controlled, and tax neutrality may be contingent on the origin of the assets and the settlor’s tax domicile.
 

British Virgin Islands (BVI): Flexible and Popular

Because of its flexible regulations and cost-effective structure, the British Virgin Islands remains the market leader in offshore trust formation. The Virgin Islands Special Trusts Act (VISTA) is especially appealing to settlors who desire to maintain control over trust assets—particularly shares in family-owned businesses—without interference from trustees. Key benefits include no capital gains or income taxes, excellent asset protection (up to a two-year statute of limitations for fraudulent conveyance claims), and ease of administration.
 

VISTA trusts are commonly used for dynastic planning and offshore company holding arrangements. The BVI has responded to global transparency challenges by enacting economic substance legislation and beneficial ownership disclosure. Despite these modifications, it remains a preferred choice for clients seeking anonymity, generational asset preservation, and company continuity.
 

Nevis provides fortress-level asset protection

The Nevis International Exempt Trust Ordinance includes some of the world’s most powerful asset protection features. Trusts in Nevis are immune to international judgements, and creditors must post a bond of at least $100,000 before taking legal action. This makes Nevis an ideal jurisdiction for persons who are at risk of litigation, such as business owners or professionals. The one-year statute of limitations for fraudulent transfer allegations, along with the steep legal hurdles for court acceptance of foreign verdicts, is a substantial deterrent to claimants. While Nevis has no income or capital gains tax on trusts, the island’s reputation has been questioned due to apparent secrecy. Nonetheless, with increased conformity with international standards, Nevis provides an attractive blend of privacy, legal robustness, and affordability.
 

Belize: Simple, Fast, and Private

Belize trusts are controlled by the Belize Trusts Act, which includes strict confidentiality rules and tax breaks for non-resident trusts. Belize also does not recognise foreign judgements, which provides further legal protection. Trust establishment is simple, with few reporting requirements and low ongoing costs. Asset protection is strong; creditors have one year to challenge transfers, and they bear the burden of proof. Belize also allows settlors to retain authority through reserved powers, making it appealing to individuals seeking involvement without giving up legal protection. However, Belize is under international pressure to improve openness and may face reputational problems comparable to other minor offshore jurisdictions. Nonetheless, for quick setup and solid protection, Belize remains a viable candidate in 2025.
 

Cayman Islands: Institutional Strengths and Legislative Sophistication

The Cayman Islands remains a top trust jurisdiction, especially for institutional clients and fund-related trusts. Cayman offers both flexibility and innovation, with no income, estate, or inheritance taxes and a well-developed legal structure that includes STAR trusts, which allow for non-charitable and nonhuman beneficiaries. STAR trusts are suited for complex family governance, philanthropy, and permanent asset holding. Cayman also maintains a firewall to safeguard trusts against foreign law claims involving inheritance or matrimonial disputes.
 

While more expensive to establish and manage than other offshore centres, Cayman has a strong reputation, top-tier fiduciary service providers, and a dynamic financial environment. Offshore property can be kept in trust, but local rules limit non-residents’ property ownership, necessitating institutions such as exempted companies or local middlemen.
 

Panama: Civil Law Trusts with a Latin Edge

Panama trusts, or ”fideicomisos,” are governed by Law 1 of 1984 and serve both local and international clients. They provide tax breaks on foreign-sourced income, high degrees of confidentiality, and legal recognition for asset protection agreements. Panama’s geographic location, dollarised economy, and developed banking industry make it especially appealing to Latin American clients and those doing business in the region. The trust regime permits discretionary trusts, fixed-interest structures, and charitable foundations. However, regulatory reforms, such as the UBO (Ultimate Beneficial Owner) record, have compromised the traditional anonymity of Panamanian organisations. Nonetheless, Panama remains a strong jurisdiction for regional estate planning, and its compatibility with civil law traditions makes it an obvious choice for continental European or Latin American settlors.
 

Liechtenstein: A Unique Civil-Law-Trust Hybrid

Liechtenstein has one of the most sophisticated legal infrastructures for wealth preservation and succession planning, integrating civil law foundations with trust concepts. The Liechtenstein Persons and Companies Act (PGR) governs trusts in the country, and settlors have the option of registering them publicly or privately. The country’s membership in the EEA provides it with unique financial access to the European market while allowing it to avoid the EU’s most stringent regulatory frameworks. Liechtenstein trusts can hold property, stocks, and business shares, and they are frequently used in conjunction with Liechtenstein foundations to develop long-term governance plans. The costs are higher, and there is more bureaucratic friction than in standard offshore countries. Nonetheless, Liechtenstein attracts ultra-high-net-worth individuals seeking sophisticated cross-border planning tools with European credibility.
 

Comparison of Jurisdictions at a Glance

Switzerland offers strong reputation and EU banking access, with moderate asset protection and privacy; taxation depends on the structure. The BVI has no taxes, high privacy, and strong protection under VISTA trusts, making it ideal for flexible structures. Nevis stands out for very strong asset protection and litigation deterrents, while Belize offers a fast, low-cost setup with decent protection and privacy.
 

The Cayman Islands combine a top-tier reputation and strong protection with no taxes, known especially for STAR trusts and a robust fund ecosystem. Panama provides high privacy and no tax on foreign income, appealing to Latin American clients with its civil law trust model. Liechtenstein, though more formal, offers strong protection, low taxes, and EU-compatible structures blending trusts and foundations.

Emerging Jurisdictions
 

The global landscape for trust jurisdictions is always changing, impacted by transparency initiatives, geopolitical tensions, and compliance rules. While conventional offshore jurisdictions such as the BVI and Nevis continue to service privacy-conscious customers, increased scrutiny from the OECD, FATF, and G20 poses reputational and legal risks. Emerging trust jurisdictions, such as Singapore, the Cook Islands, and Luxembourg, are gaining appeal by providing modern legal frameworks and improved worldwide perception. Singapore, for example, has high regulatory standards, tax neutrality for foreign trusts, and stability that appeals to Asian HNWIs.
 

Furthermore, as governments tighten real estate ownership reporting and financial transparency rules, utilising trusts to buy and hold property offshore becomes increasingly difficult—though not impossible. Cayman and Panama still provide viable options for arranging real estate ownership through stacked vehicles, despite increased compliance expenses.
 

Important Considerations

Each jurisdiction offers a distinct set of benefits geared to certain priorities—whether privacy, asset protection, tax neutrality, or estate planning sophistication. The ideal trust country in 2025 is ultimately determined by the settlor’s objectives, tax residency, risk appetite, and estate complexity. A multi-jurisdictional approach, which combines the strength of one trust regime with the advantages of offshore banking or corporate structures in another, is an increasingly popular and resilient technique.   EG