Maksym Stepanenko
Managing Partner, Crystal Tax
International client projects since 2012: company structures, tax, immigration, DUNS and NCAGE. 50+ jurisdictions.
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A trust fund is a trust: a legal arrangement in which the settlor transfers assets to a trustee, and the trustee holds and manages them under a trust deed for the benefit of the beneficiaries. In everyday speech, a trust fund means both the trust itself and the pool of assets it holds. The closest alternative is a private, or family, foundation: it serves the same purposes, but it is a legal entity in its own right, with its own charter and council.
A classic trust fund cannot be set up under Ukrainian law: the Civil Code of Ukraine recognises an asset management agreement (chapter 70, art. 1029) and fiduciary ownership as security for a loan or credit (art. 597-1 et seq.), and it has no separate trust institution of the common law kind. For this reason, owners from Ukraine set up trusts and foundations under the law of another country. The Tax Code of Ukraine expressly lists trusts and foundations among foreign entities without legal personality and may treat such an entity as a controlled foreign company (Tax Code of Ukraine, subpara. 39-2.1.1).
Trust registration and trust fund setup, turnkey: we choose the country and the form, find a licensed trustee, prepare the documents, transfer the assets and handle your Ukrainian CFC reporting.
Since 2012 · 50+ jurisdictions · trusts and private foundations with licensed partners · Ukrainian CFC rules and taxes in one team
In brief
- A trust fund is a trust: the settlor transfers assets to a trustee, who holds and manages them under a trust deed for the beneficiaries; a private foundation does the same job but is itself a legal entity.
- Trust registration follows the law of the trust's country: a UK express trust is registered with the HMRC Trust Registration Service within 90 days of creation, and a Liechtenstein private foundation outside the commercial register files a notice with the Amt für Justiz within 30 days.
- Turnkey, we choose the form and the country, bring in a licensed partner trust company, prepare the trust deed or foundation charter, transfer the assets and open the account; Crystal Tax does not act as trustee, and responsibility for the project towards you stays with us.
- A Ukrainian tax resident notifies the State Tax Service of Ukraine within 60 days of setting up a trust or foundation (Tax Code of Ukraine, subpara. 39-2.5.5); a trust may be treated as a CFC, and the CFC report is filed with the annual return, by 1 May for individuals.
- Usually, in our experience, a trust with a partner trustee is set up within a few weeks; a foundation and a bank account take longer. The timeline depends on the case, its details, the work of the authorities and force majeure.
Your situation
Six situations in which clients come to us for a trust or foundation, and the route we usually suggest.
I want to pass family assets to my children and grandchildren in advance
We build a trust or foundation with clear payment rules by age and life events, appoint the trustee and protector and draft the letter of wishes. A trust fund for a child is set up the same way: the assets are managed professionally until the child comes of age and beyond.
Example. An entrepreneur transfers an investment portfolio and a company stake into a discretionary trust; the children receive payments for education, and the rest after age 25 at the trustee's discretion.
Discuss this case →I want to keep family capital separate from the business
We move part of the savings into a trust early, while the business faces no claims or disputes, and document the source of funds. Courts can challenge a transfer of assets made to escape creditors, so we do it in good time and within the law.
Example. The owner of a manufacturing company transfers savings from previous years into a trust and gets separate accounting: the business on one side, family capital on the other.
Discuss this case →I have a group of companies in several countries and need to bring the shares together
We place a trust or foundation above a holding company so that management keeps running through a change of generation or the owner's illness. We handle the Ukrainian notices and CFC reports ourselves.
Example. Two co-owners transfer the holding's shares into a foundation with a council, where each family has fixed rights to income and votes.
Discuss this case →After relocating, our family lives in different countries
We choose the trust law and the bank so that the tax rules of all the beneficiaries' countries of residence fit together. This often goes together with business relocation and a change of residence.
Example. The parents stay in Ukraine, the daughter lives in Poland, the son in Canada: a trust under English law with an account at a bank that works with all three.
Discuss this case →I prefer a foundation with legal personality and a charter to a trust
For families with a civil law mindset, we offer private foundations with a council, a charter and by-laws. The classic option is a family foundation in Liechtenstein.
Example. A family sets up a foundation with a council of a licensed local director and a family member and fixes the payment rules in the by-laws.
Discuss this case →I want to set up a charitable foundation
We prepare a charitable trust or foundation with a purpose that meets local charity rules. A charitable CFC that does not distribute income to its founders is exempt from tax on CFC profit in Ukraine under subpara. 39-2.4.2.3 of the Tax Code of Ukraine.
Example. A family opens a foundation for student scholarships and funds it from its holding's dividends.
Discuss this case →Trust registration: countries and forms
We handle trust and private foundation registration in countries whose law and registers banks understand, and where trust services are provided by licensed companies.
We choose the country around the family's goals: where the beneficiaries live, which assets go into the trust, which bank will hold them and who will act as trustee. In every country below, the trustee or the foundation council is a licensed local partner or a person required by local law; we find them, agree the terms and run the project.
England and Wales
Form: Express trust under a trust deed
Legal basis: Common law of trusts, Trustee Act 2000
Register and who sees the data: HMRC Trust Registration Service: UK express trusts, except those excluded under Schedule 3A, trusts with UK tax liabilities, and non-UK express trusts that hold UK land or have a UK-resident trustee entering into a business relationship there. For land acquired before 6 October 2020 and held by the trust on 30 June 2026, the registration deadline is 1 September 2027. Third parties receive data on request where they show a legitimate interest linked to a money laundering or terrorist financing investigation, or where the trust owns more than half of a company outside the UK and the EEA
When it fits: The family lives in several countries and needs a law that every bank understands and courts with long practice
Cyprus
Form: International trust: the settlor and beneficiaries are not Cyprus residents, at least one trustee is a resident
Legal basis: Cyprus International Trusts Law 69(I)/1992, as amended by 20(I)/2012, 98(I)/2013 and 240(I)/2025
Register and who sees the data: CyTBOR, the register of beneficial owners of trusts, kept by the Cyprus Securities and Exchange Commission (CySEC) under art. 61C of anti-money laundering law 188(I)/2007
When it fits: A trust under the law of an EU country is needed, assets or a holding are in Europe
Liechtenstein
Form: Private foundation (Stiftung) and trust (Treuhänderschaft)
Legal basis: Personen- und Gesellschaftsrecht (PGR) of 1926: art. 552 on foundations, art. 897 et seq. on trusts
Register and who sees the data: A foundation that is not entered in the commercial register files a notice of formation with the Amt für Justiz within 30 days; a local lawyer or Treuhänder confirms the accuracy of the data. Beneficial owners are recorded in the register under the VwbPG of 2020
When it fits: The family thinks in civil law terms and wants a foundation with its own legal personality for generations
Singapore
Form: Trust with a licensed trust company
Legal basis: Trust Companies Act 2005, trust business licence issued by MAS
Register and who sees the data: The trust company is supervised by MAS; the regulator and the bank receive the beneficiary data
When it fits: Assets, accounts and investments in Asia
Trusts and foundations in the Emirates are covered on a separate page: trusts in the UAE. We consider other countries on request if they have a licensed trustee and practice that banks understand.
Taxes and reporting in Ukraine
The tax obligations of a settlor and beneficiaries who are Ukrainian residents remain in place when assets move into a foreign trust or foundation: the Tax Code treats trusts and foundations as foreign entities without legal personality that may be treated as CFCs (Tax Code of Ukraine, subpara. 39-2.1.1). That is why we plan the Ukrainian side at the start, before the trust deed is signed.
Who counts as a controlling person
- The settlor. Under subpara. 39-2.1.5 of the Tax Code of Ukraine, the settlor of a trust is deemed to own the shares in companies held among the trust assets. The exception in subpara. 39-2.1.5.1 applies where the settlor cannot give instructions on payments to themselves, dispose of the income, take the property back (the trust is irrevocable) or terminate the trust, and exercises no actual control.
- Evidence for the State Tax Service of Ukraine. Together with the notice, the settlor may file one of the documents confirming these conditions: a trustee statement, an extract from the trust deed or a legal opinion under the law of the country of the discretionary irrevocable trust, prepared as required by subpara. 39-2.1.5.3 of the Tax Code of Ukraine. The burden of proving that the settlor does not meet the conditions lies with the State Tax Service of Ukraine.
- Beneficiaries and other persons. A person who did not set up the trust is deemed to own a share if they can demand income payments, dispose of trust property, receive property on liquidation at their own will or actually control the trust (Tax Code of Ukraine, subpara. 39-2.1.5.2).
- Actual control. This means decisive influence over the trustee's decisions, the right to replace the trustee or to decide on the distribution of profit (Tax Code of Ukraine, subpara. 39-2.1.6). We therefore draft the protector's powers and the letter of wishes with this rule in mind.
Notices and the report
- A notice to the State Tax Service of Ukraine on setting up a trust or foundation, or on acquiring rights to a share in its assets or income, and on its liquidation or disposal, is due within 60 days (Tax Code of Ukraine, subpara. 39-2.5.5).
- The CFC report is filed together with the annual return, for individuals by 1 May of the following year (Tax Code of Ukraine, subparas. 39-2.5.2 and 49.18.4). If the financial statements are not ready yet, a short report is filed first, and the full report follows by the end of the next calendar year (Tax Code of Ukraine, subpara. 39-2.5.4).
- For a trust, the controlling person arranges separate financial statements under international standards and calculates the adjusted profit under the CFC rules, except where the person has acquired rights to a share and reports the trust income in their own return, or the share in the trust is held by a CFC (Tax Code of Ukraine, subpara. 39-2.5.7).
Rates and exemptions
- CFC profit attributable to an individual is included in their annual income and taxed at 18 percent personal income tax (Tax Code of Ukraine, subpara. 170.13.1 and para. 167.1) plus 5 percent military levy (para. 16-1 of subsection 10 of section XX of the Tax Code of Ukraine).
- Payments from a foreign trust or foundation that is not a CFC are included in the recipient's annual income and taxed at 9 percent income tax, half of the 18 percent rate (Tax Code of Ukraine, subparas. 170.11-1.1 and 167.5.4), plus 5 percent military levy; the recipient files a return with the trustee's distribution decision and proof of their right to the payment (Tax Code of Ukraine, subpara. 170.11-1.2).
- CFC profit is exempt if the total income of all CFCs of one person does not exceed the equivalent of EUR 2 million (Tax Code of Ukraine, subpara. 39-2.4.2.1), or if it is a charitable organisation that does not distribute income to its founders (Tax Code of Ukraine, subpara. 39-2.4.2.3). The notices are still filed in these cases.
- Penalties for failing to file the CFC report and the notices are set in para. 120.7 of the Tax Code of Ukraine. For breaches from 1 January 2022 until the end of the month in which martial law ends, these penalties do not apply if the obligations under art. 39-2 are met within six months after it ends (para. 72 of subsection 10 of section XX of the Tax Code of Ukraine).
Ukraine takes part in the CRS automatic exchange of financial account information; according to the OECD list, its first exchange took place in September 2024. Data on the trust's accounts and its beneficiaries enters this exchange through banks and tax authorities. Our accountants prepare the notices, reports and returns; see the page on CFC reporting.
Confidentiality within the law
A trust fund gives confidentiality from outsiders and full transparency for banks and tax authorities. Beneficial ownership registers exist in the UK (TRS at HMRC), in Cyprus (CyTBOR at CySEC) and in Liechtenstein (the register under the VwbPG). The bank that holds the trust's account reports data under CRS to its tax authority, which passes it on to the beneficiary's country of residence. According to the OECD list, the first exchanges took place in September 2017 for the UK, Cyprus and Liechtenstein, in September 2018 for Singapore and in September 2024 for Ukraine.
Access by outsiders to these registers is limited. In its judgment of 22 November 2022 in joined cases C-37/20 and C-601/20, the Court of Justice of the EU declared invalid the provision of the anti-money laundering directive that made information on the beneficial owners of companies accessible to any member of the public in all cases. Third parties get access to the HMRC register only on request with a legitimate interest, or where the trust controls a company outside the UK and the EEA.
We build only structures that are transparent for banks and tax authorities. Our confidentiality is set out in the contract: we disclose data about you, your family and your assets to the trustee, the bank and the authorities to the extent the procedure requires.
What turnkey trust registration includes
Turnkey trust registration is a chain from the analysis of the family and assets to the trust account and the first report in Ukraine, and one team runs all of it.
- Goals and analysis. We review the family, each member's residence, the assets and their origin, current business risks and succession plans.
- Form and country. We compare a trust with a private foundation and a discretionary with a fixed-interest trust, and choose the jurisdiction from the table above.
- Trustee. We find a licensed partner trust company and agree its fees and working rules. Crystal Tax does not act as trustee; we choose the partner, and responsibility for the result towards you is ours as well.
- Documents. Trust deed, letter of wishes, appointment of the protector; for a foundation, the charter, by-laws and regulations. We check every wording against the Ukrainian rules on the controlling person.
- Registration. Entry in the country's register: TRS in the UK, CyTBOR in Cyprus, a notice or an entry in Liechtenstein.
- Asset transfer. Company shares, accounts, securities, real estate, through notaries, registers and banks.
- Trust account. A bank or investment account, the KYC package and an explanation of the source of funds.
- Ukraine. The 60-day notice to the State Tax Service of Ukraine, the CFC report, returns for the settlor and beneficiaries, tax residency questions.
- Ongoing support. Annual register updates, trust reporting, changes in the beneficiaries.
If a separate company is needed to hold the assets, we register it within the same project: company registration abroad.
How long it takes to set up a trust
Usually, in our experience, a trust with a partner trustee is set up within a few weeks; a private foundation and the trust's bank account take longer. The timeline depends on the case, its details, the work of the authorities and force majeure.
- Analysis and choice of form. Usually 1–2 weeks if the asset documents are at hand.
- Trustee KYC. The trust company checks the settlor, the beneficiaries and the source of funds; apostilles and certificates set the pace.
- Documents and registration. We prepare the trust deed and letter of wishes in parallel with the checks. The statutory registration deadlines, 90 days for TRS and 30 days for the notice in Liechtenstein, are the outer limit for the trustee; in practice we file earlier.
- Account and asset transfer. The bank decides whether to open the account; the transfer of real estate and shares depends on registers and notaries.
The notice to the State Tax Service of Ukraine is due within 60 days of the trust's creation, so we put this date in the plan from day one.
What the cost of setting up a trust depends on
We calculate the cost of setting up a trust for each task; it depends on the country, the form and the assets that go into the trust.
- Jurisdiction and form: trust or private foundation.
- The partner trustee's fees: one-off at setup and annual.
- Types of assets and how they are transferred: shares, accounts, securities, real estate in different countries.
- The number of beneficiaries and the complexity of the payment rules.
- Whether a new bank or investment account is needed.
- The Ukrainian side: notices, CFC reports, the trust's financial statements.
We state government fees and the costs of the trustee, notaries and translators in advance as separate lines. We will give you an estimate within a working day after a short description of your task.
Why clients trust us with setting up trusts
A trust connects the trustee, the bank and the tax authorities of several countries, and clients entrust it to us for five reasons.
In business since 2012
For fourteen years we have set up structures, opened accounts and handled taxes in 50+ jurisdictions. We know the requirements of registrars, banks and tax authorities from our own cases.
We deal with authorities, trustees and banks
Correspondence with the trust company, the register and the bank and replies to their requests are on us. From you we need documents and decisions.
We carry the case to the result
We rework remarks from the trustee, the register and the bank at no extra charge. Trust services are provided by licensed partners in the country, and responsibility towards you is ours.
One team for the whole structure
The trust, the company, the account, accounting and taxes, including Ukrainian CFC rules, in one pair of hands, with no need to look for separate contractors.
Contract and confidentiality
The scope of work, timelines and confidentiality are set out in the contract. We disclose data about you, your family and your assets to the extent the procedure requires.
How to set up a trust: our process
Setting up a trust goes step by step: goals and form first, then the trustee and documents, then the assets, the account and Ukrainian reporting.
- Analysis. We review the family, assets, residence and goals, and propose 1–2 options: trust or foundation, country, risks of each.
- Trustee and KYC. We find a licensed partner trustee and put together your KYC package and explanation of the source of funds.
- Documents. Trust deed, letter of wishes, protector; for a foundation, the charter and by-laws. We check them against the Tax Code of Ukraine rules on control.
- Registration. The trustee signs the documents and enters the trust in the country's register; we answer the requests.
- Assets and account. We transfer shares, accounts and real estate and open the trust's bank or investment account.
- Ukraine and support. The 60-day notice to the State Tax Service of Ukraine, the CFC report, returns, annual register updates.
Documents for trust registration
For trust registration, the trustee and the bank check the settlor, the beneficiaries and the origin of the assets; the exact list depends on the country and the trust company.
About the settlor
- Passport and a second identity document.
- Proof of address: a bank statement or utility bill from recent months.
- Tax residency details and tax identification number.
- A summary of your business background.
About the funds and assets
- Proof of source of wealth: sale of a business, dividends, inheritance, salary.
- Proof of source of the specific funds going into the trust: statements, contracts, dividend resolutions.
- Asset documents: company register extracts, brokerage statements, real estate documents.
About the beneficiaries
- Passports and addresses of adult beneficiaries, birth certificates of children.
- Family details for the payment rules: marriages, children, special circumstances.
We translate documents in Ukrainian, tell you where an apostille and a notarised copy are needed, and check the package before it goes to the trustee.
Trust fund vs private foundation: the difference
A trust and a private foundation serve the same purposes, managing family capital and passing it to the next generations, but they are built differently.
| Feature | Trust | Private foundation |
|---|---|---|
| Legal nature | A legal relationship without a legal entity; the assets belong to the trustee | A legal entity; the assets belong to the foundation itself |
| Main document | Trust deed, with a letter of wishes | Charter, by-laws, regulations |
| Who manages | The trustee, often overseen by a protector | The foundation council |
| Legal tradition | Common law: England and Wales, Cyprus, Singapore | Civil law: Liechtenstein and other countries |
| For Ukrainian tax purposes | An entity without legal personality that may be treated as a CFC | A foreign legal entity or an entity without legal personality, depending on the law of the country of registration |
Types of trusts
- Discretionary. The trustee decides which beneficiaries receive payments and how much, taking the letter of wishes into account. Beneficiaries have no right to demand a specific amount.
- Fixed-interest. The beneficiaries' rights to income or capital are fixed in the trust deed.
- Revocable and irrevocable. In a revocable trust, the settlor keeps the right to take the property back. This matters for Ukrainian taxes: a settlor who can take the property back is deemed to own the trust assets (Tax Code of Ukraine, subpara. 39-2.1.5.1).
- Purpose and charitable. They serve a purpose, such as charity or the upkeep of property; the persons who benefit may not be named.
Terms: settlor, trustee, protector, beneficiary
- Settlor. Transfers assets into the trust and sets its rules.
- Trustee. Legally owns the assets and manages them in the interests of the beneficiaries; usually a licensed trust company.
- Protector. Oversees the trustee, may approve key decisions and replace the trustee if the trust deed provides for it.
- Beneficiary. Receives payments from the trust under its rules.
- Letter of wishes. The settlor's letter to the trustee on how they see the assets being handled; it is usually not made legally binding on the trustee.
How to start
Describe your family, assets and the purpose of the trust, and within a working day we will propose the form, the country and the work plan. The first 10-minute call is free.
Other services
Sources
Tax Code of Ukraine (as amended 17.09.2026): art. 39-2, 120.7, 167, 170.11-1, para. 72 of subsection 10 of section XX; Civil Code of Ukraine: § 8 of chapter 49, art. 597-1 et seq.; chapter 70, art. 1029; GOV.UK: Check if you need to register a trust; HMRC Trust Registration Service Manual: TRSM60020; CySEC: Cyprus Trusts Beneficial Owners Registry (CyTBOR); CyLaw: Cyprus International Trusts Law 69(I)/1992; Lilex: PGR, Art. 552 § 19–20; MAS: Trust Companies Act; Court of Justice of the EU: press release 188/22 on cases C-37/20 and C-601/20; OECD: CRS MCAA signatories and first exchange dates. Checked: 27.09.2026.
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Frequently asked questions
What is a trust fund in simple terms?
Can a trust fund be set up in Ukraine?
How do I set up a trust fund for a child?
Do I pay taxes in Ukraine if my assets are in a trust?
Private foundation vs trust: what is the difference?
Who sees information about a trust?
Does a trust protect assets from creditors?
How much does it cost to set up a trust?
How long does it take to set up a trust?
How do I register a private trust or a family foundation?
Can the settlor also be a beneficiary?
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