Financial investments and French trust reporting legislation

While the concept of a trust is unknown in French law and it is not possible to establish a trust under French law the existence and effects of a trust established outside of France are in principle recognised in France. The law of the law of 29 July 2011 provides the legal frame work applicable to non-French trusts including reporting requirements.

According to Article 792-0 bis of the French tax code (FTC) all the legal arrangements which have been created under the legal system of a state other than France by a person who has the quality of a settlor either by an inter vivos act or a disposition upon death to place assets or rights under the control of a trustee for the benefit of one or more beneficiaries or for a specific purpose are considered trusts.

The law includes any legal...