It is possible to open a trust in Romania, as this entity has been regulated under the Romanian law. The trust is known as fiducia and it is used as an instrument through which specific assets are being managed by an appointed party. Our Romanian lawyers can present the applicable legislation, the characteristics of the trust and its incorporation requirements and can assist during the registration formalities.
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Basic characteristics of a trust in Romania
Any party interested in opening a trust in Romania should know what its characteristics are under the Romanian law, as they may vary from one country to another. In the list below, our lawyers in Romania present some of the main traits of this structure:
- the trust has been legally recognized in Romania following the amendments of the Civil Code, which entered into force on 1st of October 2011;
- in order to open a trust in Romania, the participation of 3 parties is required – the settlor (the person setting up the trust), the trustee (the person assigned to manage the assets of the trust) and the beneficiary (the party who has the right to benefit from the respective assets);
- according to the law, the duration of a trust can’t be longer than 33 years;
- Article 774 (1) of the Civil Code stipulates that the trust must be registered through a contract, established between the parties, recognized by law, and which must contain a set of mandatory elements.
Who can set up a trust in Romania?
The right to open a trust in Romania is granted to both individuals and legal entities. However, in the case of those appointed as trustees, we mention that only specialized entities can occupy this function. Some of the parties that can be appointed as the trustees of a Romanian trust are:
- investment management companies;
- insurance companies;
- reinsurance companies;
- credit institutions;
- public notaries;
- attorneys in Romania.
Given that the trustees will have a high level of responsibility in administering the trust, they have the right to be remunerated for their services. Please mind that, once appointed, the trustees can be replaced provided that the settlor or the beneficiary (or his/her representative) consider that this action is required.
How to register a Romanian trust
When initiating the process of company formation in Romania investors must conclude specific steps, imposed by the law to all commercial companies. In the case of a trust, the registration follows a different protocol, as this entity is not registered with the institutions that are usually involved in the registration of Romanian company types.
Instead, the trust must be registered with the Electronic Archive of Security Interests in Personal Property (our law firm in Romania provides legal assistance in the registration formalities that must be met with this institution). Please mind that, in 1 month since its registration, its representatives must also address the fiscal authorities in Romania, as they are also involved in the registration process.
We also mention that the participation of the Romanian Land Registry may also be required, provided that the settlor plans to transfer ownership rights over real estate property. The institution is also involved in legal matters that appear when locals or foreigners buy a property in Romania.
What types of assets can be held under a trust?
The trust can be set up for the protection and administration of a variety of assets, some of which are:
- real estate properties;
- vehicles;
- bank accounts;
- investments;
- company shares;
- companies;
- other personal goods of high value (art objects, jewelry, etc.).
We invite you to contact our law firm in Romania for more information on the Romanian trust. We can assist you in other legal matters (corporate taxation, submission of documents, addressing institutions, offer legal representation in opening a business in Romania, etc.).