Trust and property in Switzerland

Is it possible to own Swiss real estate in trustThis is not a tax question but a question of real estate ownership structuring in Switzerland.

Two British nationals co-own a property in Switzerland. They, along with their two US-American children, have established a US-American trust (State of New York). The trust is irrevocable. The father is the grantor, respectively settlor, while his wife and the children are the trustees and beneficiaries. None of the four is domiciled in Switzerland.

Parents are asking the administration in charge of LFAIE matters that the woman be able to transfer her half of the property to her husband, and then that the trust may be indicated as the owner in the land register. The administration refuses the transfer to trust.

The trust does not have legal personality and therefore cannot be registered as the owner of a property in the land register. trustees. (cons. 3.2.1.)

With regard to the LFAIE, both the trustees that the beneficiaries must meet the legal requirements. (recital 3.2.3.)

The troostyes, as individuals, they could all be registered as owners without needing LFAIE authorisation, as they are the spouse and descendants (see 5.2).

Federal judges consider that the absence of authorisation applies only to a direct transfer of the property. (cons. 5.5.) Indirect ownership does not benefit from the privilege for relatives. (cons. 5.6.)

Please note, this ruling only has a scope in relation to the LFAIE.

Tax questions are not concerned. In this regard, some cantonal tax authorities clearly do not want trusts in the land registers. For example, Geneva (unless practices have changed since then) considers that ownership in trust This must be analysed at the level of the kinship between the trustees. If the trustees are third parties, the tax authorities levy gift tax on transfers between third parties at a rate of 54.61%.
You can put a building in trust… but two changes of trustees And the capital goes into the red. Or how to say no without saying it.

The ruling is in German. It concerns a case from Bern.

Federal Supreme Court, judgment 2C_437/2024 of 5 February 2026