Your Complete Guide to Establishing a Greece Legacy Trust in 2025

Imagine meticulously building a portfolio of assets—a sun-drenched villa in Crete, a thriving business in Athens, or a carefully curated investment portfolio—only to face uncertainty about how it will be managed or distributed to your loved ones in the future. The complexities of international inheritance laws, potential family disputes, and unforeseen tax liabilities can cloud even the most well-planned estate. For high-net-worth individuals and global families with ties to Greece, establishing a structured vehicle for asset protection and succession is not just prudent; it's essential. This is where the strategic use of aGreece Legacy Trustbecomes a powerful component of a robust international estate plan. As we look ahead to 2025, understanding the nuances of Greek trust law and its alignment with your global goals is more critical than ever.

This guide will walk you through the key considerations, legal framework, and practical steps for establishing a trust in Greece, ensuring your legacy is preserved according to your wishes.

Understanding the Greek Trust Framework: Fiducia vs. International Trusts

Greece’s legal system operates under a civil law tradition, which historically did not recognize the common-law "trust" concept in its classic form. However, modern Greek law provides effective alternatives and has made strides in accommodating international structures.

The primary domestic instrument is thefiducia. Governed by articles 1288-1310 of the Greek Civil Code, a fiducia is a contractual relationship where a fiduciary (the trustee) holds the legal title to assets for the benefit of a beneficiary, according to the terms set by the settlor. While it serves similar purposes to a trust—asset management, succession planning, and creditor protection under specific conditions—its contractual nature means it is less flexible than common-law trusts.

For international families, a more versatile option may be theGreek International Trust. Although not codified in a standalone law, Greece is a signatory to the Hague Convention on the Law Applicable to Trusts and on their Recognition (July 1, 1985). This means that a trust established under a foreign law (e.g., UK, Cyprus, Malta) can be recognized and enforced in Greek courts, provided it meets the Convention's criteria. This pathway is often used for holding Greek assets like real estate within a foreign-law trust structure.

Key Benefits of Establishing a Trust Structure for Greek Assets

Why consider aGreek asset protection trustas part of your 2025 planning? The advantages are multifaceted, addressing core concerns of wealth preservation and family harmony.

First, it provides a high degree ofsuccession planning clarity. By clearly outlining how and when your Greek assets should be distributed, you bypass the default, often rigid, rules of Greek forced heirship (notisimo), which may not reflect your personal wishes for non-Greek heirs or charitable intentions. A well-drafted trust deed ensures your specific instructions are followed.

Second, it offers a layer ofasset protection. When properly established before any claims arise, a trust can shield assets from future personal creditors, political instability, or unforeseen financial liabilities. This separation of legal ownership (held by the trustee) and beneficial interest is a cornerstone of wealth preservation.

Finally, with expert advice, there can be potentialtax efficiency. While Greece does not have a specific trust tax regime, understanding the interplay of income tax, inheritance tax, and potential treaty benefits is crucial. Proper structuring can help mitigate the overall tax burden on the estate and the beneficiaries.

A Step-by-Step Guide to Setting Up Your Greece Legacy Trust in 2025

Navigating the establishment process requires careful planning and professional guidance. Here is a roadmap for yourtrust establishment in Greece.

Step 1: Define Your Objectives and Choose the Right StructureBegin by consulting with a specialist in Greek inheritance and international tax law. Clearly articulate your goals: Is this for multi-generational wealth transfer, specific asset management (like a rental property), or charitable purposes? Based on your domicile, nationality of beneficiaries, and asset types, your advisor will recommend whether a domestic fiducia or a foreign-law trust recognized in Greece is optimal for yourlegacy planning in Greece.

Step 2: Select Your Fiduciary and Draft the Trust DeedThe choice of trustee is paramount. This can be a trusted individual, a Greek lawyer, or a licensed fiduciary company. For complex or international trusts, a professional corporate trustee is often advisable for their expertise and permanence. The trust deed is the foundational document. It must meticulously detail the settlor, trustee, beneficiaries, trust assets, governing law, powers of the trustee, distribution rules, and termination events. As noted by Athens-based wealth attorney, Maria Ioannou, "The precision in the trust deed cannot be overstated. In Greek practice, ambiguity is the enemy of enforcement."

Step 3: Fund the Trust and Ensure Proper Registration"Funding" the trust means legally transferring the ownership of the designated assets to the trustee. For Greek real estate, this involves executing a notarial deed of transfer and registering the new ownership (in the trustee's name,as trustee) at the local Land Registry. This step triggers transfer taxes, which must be calculated and paid. For financial assets, the process involves changing titles and account registrations. Comprehensive documentation of this transfer is vital for the trust's validity.

Step 4: Implement Ongoing Administration and ComplianceA trust is not a "set-and-forget" instrument. The trustee has ongoing duties: managing assets, filing any necessary tax returns for income generatedwithinthe trust, accounting to beneficiaries, and adhering to the deed's terms. Regular reviews, especially with changes in Greek law or your personal circumstances, are essential. The 2025 landscape may bring regulatory updates, making a proactive relationship with your local advisor indispensable.

What are the main tax implications of a Greece Legacy Trust?The tax treatment is layered. Transferring assets into the trust may incur Greek property transfer tax (for real estate) and potentially gift tax. During its lifetime, the trust itself may be taxed on Greek-sourced income. Most critically, distributions to beneficiaries may be subject to Greek inheritance tax, depending on the beneficiary's residence and the nature of the distribution. Specialist tax advice is mandatory to navigate this complex area.

Can a trust help avoid Greek forced heirship rules?This is a nuanced area. A Greek fiducia may not fully override forced heirship claims from heirs protected under Greek law. However, aninternational trustestablished under a foreign law that does not have forced heirship rules can be more effective, especially if the settlor is not domiciled in Greece. Its recognition under the Hague Convention can provide a stronger barrier against such claims, but this is a high-stakes strategy requiring expert legal counsel.

How long does it take to establish a trust for Greek assets?The timeline varies significantly. Planning, structuring, and drafting can take several weeks to months. The actual funding process, particularly for real estate, is governed by Greek bureaucratic and notarial timelines. From initial consultation to full registration and funding, a period of 3 to 6 months is typical, emphasizing the need for advance planning, especially for 2025 objectives.

Establishing a Greece Legacy Trust is a forward-looking strategy that transforms uncertainty into clarity. It empowers you to protect your Greek assets, provide for your loved ones according to your vision, and navigate the intersection of Greek and international law with confidence. As regulations and global mobility evolve, taking structured, informed action now with a team of qualified Greek legal and tax professionals is the most effective way to secure your legacy for the future. The peace of mind that comes from knowing your wishes will be honored is, ultimately, the most valuable asset of all.