The option to open a trust in Romania is to set up a fiducia, which is a recognized legal instrument through which one or more parties transfer rights to one or more trustees who administer these for one or more beneficiaries. Our team that can help you open a Romanian company can also help you with the formation of a fiducia. For the purpose of this article, our team shall herein refer to the fiducia as a trust. Read below to find out more about how to open a trust in Romania.
| Quick Facts | |
|---|---|
| Trust recognized under law in Romania | Under the Civil Code, articles 773 and 774, along with other relevant laws and regulations. |
| Number of trust settlors | One or more |
| Number of fiduciaries (trustees) | One, but the trust deed can provide for more |
| Number of beneficiaries | One or more |
| Trust deed format | Authentic, notarised agreement |
| Mandatory signatures provided on the trust deed | Original signatures from all involved parties are required |
| Electronic signature allowed | Yes, subject to conditions |
| Conditions for the fiduciary | In most cases, the fiduciary duties are undertaken by a professional. |
| Conditions for the settlor | Be sound of mind. Other conditions can apply. |
| Conditions for the beneficiary | No mandatory provisions |
| Trust deed registration with the authorities | With the National Agency for Fiscal Administration |
| Trust deed registration requirements | Provide the documents that identify the parties, along with the deed |
| Trust deed registration deadline | One month after the deed’s date of conclusion |
| Modifications possible after registration | Yes, subject to proper notification to the authorities |
| Trust deed registry name | The Central Registry of Trusts |
A trust, or a fiducia as it is called in Romania, must have three parties to it:
The settlor or grantor can also be the beneficiary, just as the trustee can also be the beneficiary of the trust.
There are no legal limitations as to who can open a trust in Romania. Any natural or legal person can be a settlor. However, only specialised companies or individuals can act as trustees as this is a role that is subject to specific requirements, qualifications, and competence.
The trustee is entitled to proper remuneration according to the agreement concluded between the parties. Our experts in company formation in Romania can give you more details on this matter.
To open a trust in Romania, the settlor must draw up the trust agreement. This step is mandatory as the fiducia cannot exist without this founding document.
The law that governs the creation of trusts in Romania and, implicitly, that offers guidance and regulations for their creation, is an integral part of Law 287/2009, namely Title IV “Trust”.
The deed must include the following information, otherwise it is considered null:
The trust deed can be drawn up with the assistance of a lawyer or a notary. These two parties can also act as fiduciaries, if needed. For investors who are interested in these services, according to the packages offered by our team who can also help you with company formation in Romania.
The trust deed must be registered with the competent regional authority. The trustee is the one liable for this registration. Upon request, our team can offer details about the registration procedure as per the National Agency for Fiscal Administration, Order no. 1.985/2012, which provides information on the Declaration of registration of trust agreement.
The trust deed and any amendments thereof must be registered at the request of the trustee, by way of submission to the tax authority in whose fiscal records the trustee is registered as a taxpayer. This is the competent central tax authority, and our experts in company formation in Romania can assist during this registration.
For the trust deed registration with the tax authorities, it is important to keep in mind that the deadline is one month from the trust deed’s conclusion (and/or of its amendments, whichever applies).
The trustee submits the Statement of registration of trust agreements directly to the tax authority’s registry and a copy of the trust agreement, which will include the applicant’s signature and the mention “as per the original”. Our team that can help you register a company in Romania can also assist with the tax registration of the trust deed.
The modification or termination of the trust agreement is registered by the trustee within one month from the date of its occurrence, by submitting the declaration, having checked the “Modification” or “Termination” box in the required form, as the case may be, accompanied by the supporting documents.
Trust agreements are stored by the tax authority in the Central Register of Trusts, which is an electronic one. Registration in the Central Register of Trusts is carried out within a maximum of 5 days from the date of filing the declaration.
The legal basis on which trust deeds are processed by the Romanian tax authorities includes:
In Romania, the Trustees Association is a legal body set up with the purpose of creating and implementing standards in the work carried out by those who act as fiduciaries, in the context of and for the purposes of those who open a trust in Romania. Members can enter the Association on a voluntary basis, and their acceptance within the Association means that they will adhere to the Statute of the Romanian Association of Fiduciaries.
Trust asset transfers are subject to taxation in Romania, depending on how this transfer is performed (first from the settlor to the trustee, then from the trustee to the beneficiary).
The profits tax is one of the main taxes to take into account in this case, and our team specializing in company formation in Romania lists the main personal income tax rates below:
Understanding the trust and/or fiduciary regime in Romania before entering into such an agreement is essential for those who are looking to open a trust in Romania. Our team can provide more details about the conditions for registration and the practical applications of the trust.
Contact us if you want to know more about the applicable regime to open a trust in Romania.