Trust services in the Netherlands are regulated by the Civil Code. They represent legal operations whereby one or more settlors transfer real rights, rights instruments, securities, or other property rights or assembly of such rights, present or future, to one or more trustees. Since March 2004 have been created trust offices via the Trust Offices Supervision Act (ASTO) and the transfer decision under the supervision of the Dutch Central Bank.
Below, our Dutch accounting firm explains the main trust services you can obtain in the Netherlands, as well as the solutions we can provide you with.
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Types of trust services available in the Netherlands
According to the Civil Code, such services refer to trustees acting on behalf of those who create trusts in the Netherlands. However, starting with 2018 when the Act on the Supervision of Trust Offices was amended, new categories of solutions were included. These are:
- nominee director and shareholder services;
- postal address services;
- selling or intermediating transactions between companies;
- general administrative services.
It should also be noted that regular trustee services are now included in this law. The main reason for choosing such solutions in the Netherlands is that trustees must also be licensed by the Dutch Central Bank.
Nominee services in the Netherlands
Nominee solutions can be provided through a trust service contract to local and foreign business owners. In most cases, the latter category uses it to have their companies managed by Dutch trust offices. However, it is worth noting that starting in 2023, the Trade Register has created the Ultimate Beneficial Owners Registrar where foreign shareholders must provide their details upon the establishment of companies.
Even if our Dutch accountants offer accounting services, they are updated on the laws foreign investors need to comply with and can put you in contact with our partners dealing in business registration.
Address solutions as part of Dutch trust services
Trust service providers can also offer legal or postal address services to foreign companies. In addition, they can also supply additional services, such as accounting-related ones. For example, our accounting firm in the Netherlands can offer:
- tax return and filing services;
- audit services;
- financial statements reviews and compilation;
- payroll services in the Netherlands;
- record-keeping services;
- director recruitment solutions.
Please note that upon the provision of these services, we cannot supply tax planning and minimization solutions, as the Trust Offices Act prohibits them.
Trust service contracts in the Netherlands
Trust services in the Netherlands can be provided only on the basis of a trust contract. This document will often include:
- real estate rights;
- rights associated with financial instruments;
- securities and any other property rights;
- the transfer period (which can not be more than the time provided by the law);
- the identity of the parties involved;
- the purpose of the trust services and the scope of the powers of administration and provision of the trustee;
- the conditions under which the trustee responds in front of the settlor;
- the intervals at which the trustee responds in front of the beneficiary and representative settlor.
Trust services in the Netherlands are expressly established by law or contract in authentic form. At termination, the asset mass is transferred to the beneficiary or, failing that, to the settlor. Any trust services contract is null and void if it is achieved through indirect liberality in favor of the beneficiary.
The parties involved in the contract for trust services in the Netherlands are the settlor, who can be any person or entity, and the trustee, who can only be represented by:
- credit institutions;
- investment companies and investment management companies;
- investment service providers;
- insurance and reinsurance companies;
- public notaries and lawyers.
The beneficiary of the trust services may be the settlor, trustee, or a third person.
The Trust Offices Supervision Act
The ASTO has been created to promote the integrity of the financial system. The supervision of trust offices focuses mainly on the integrity of the trust company and its clients. In addition to the Supervision of Trust Offices Act, trust offices are also bound by the Act on Prevention of Money Laundering and Financing of Terrorism (Wwft) and Sanctions Act 1977. These two laws ensure that trust companies do business in the context of integrity.
Authorization of trust service providers in the Netherlands
The National Bank is in charge of issuing licenses for trust management companies in the Netherlands. These must apply for a specific permit only if the services they render are offered in a professional capacity or if they have a commercial basis.
When it comes to the licensing phase, service providers must note that:
- the Central Bank provides for a 10-step application procedure;
- the analysis of the application takes about 13 weeks to complete;
- in case the process is prolonged because of the lack of documentation, the application can be suspended after a 4-week waiting period.
Exceptions are in place for certain professionals only, among which lawyers and debt collection agencies.
Trust services provided by our accountants
Trust services in the Netherlands usually cover certain actions that can also be provided by our Dutch accounting firm, for example:
- acting as director or shareholder of a corporation or partnership;
- tax registration procedures for corporate entities and any other entities in various jurisdictions;
- advising on private law or assistance, except for the provision of reception work;
- providing tax payments or tax returns and related activities;
- perform work in connection with the preparation, review, or verify the accounts or the keeping of accounts;
- other additional activities that can be included in general administrative tasks.
Contact us for professional advice and assistance for trust services in the Netherlands.