Trust in Liechtenstein vs. Trust in Serbia

At first glance, it may seem almost impossible to compare one of the world’s most renowned trust jurisdictions, such as Liechtenstein, with a country like Serbia, which does not have a long-standing tradition of attracting and protecting international capital. However, the results of this comparative analysis may pleasantly surprise you.

It is not widely known that Serbia has a legal framework for the existence and operation of trusts — a legal institution defined during the time of the former Yugoslavia and, with certain modifications, still in effect in modern, democratic Serbia.

At its core, the Serbian trust does not significantly differ from trusts based on the Anglo-Saxon legal system, nor from those common in Western European countries, including Liechtenstein.

However, there are certain differences that — in our opinion — give the Serbian trust an advantage, especially for clients affected by the abolition of banking secrecy, the introduction of new international banking standards, and the gradual decline of once “untouchable” jurisdictions such as Switzerland, Liechtenstein, Andorra, Panama, Cyprus, the UAE, and others.

The greatest advantage of Serbian trusts lies in the existence of two categories: public and private trusts. Private trusts provide full capital protection while also allowing unrestricted use of funds, free from the limitations typically seen in other jurisdictions.

A key advantage of the Serbian trust model is the absence of a legally mandated intermediary — the so-called trustee. In most other systems, the beneficiary and the settlor cannot carry out transactions without the trustee’s approval and signature. In Serbia, this is not the case. Here, the settlor and beneficiary can manage their own capital directly, without third-party involvement, which significantly simplifies processes and reduces risks.

The Serbian trust offers a range of specific solutions that enable maximum freedom in management and a high level of legal protection for capital, all in line with existing legislation. Due to these features, the Serbian trust can today be considered a unique solution in the global context.