Trusts work as legal arrangements that allow one party to manage assets for the benefit of another. Denmark recognizes and accommodates foreign trusts under certain conditions, particularly in international contexts, while the country does not have a specific trust legislation at the moment. In the article below, our team of specialists in starting companies in Denmark provides an overview of how foreign trusts can be recognized in Denmark from another countries, the main categories of foreign trusts recognized in Denmark, and the benefits of using such arrangements in this country.
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Types of international trusts recognized in Denmark
While Denmark does not allow the direct creation of domestic trusts, Danish courts may recognize the legal effects of valid foreign trusts, especially if established in accordance with the laws of a country that supports such structures. Danish nationals can also use the benefits of foundations in Denmark to proceed wealth planning operations. These trust types may include:
- Living trusts (revocable trusts);
- Irrevocable trusts;
- Directed trusts;
- Asset protection trusts (APTs);
- Charitable trusts;
- Dynasty trusts (for multi-generational planning).
If you want to know more information about opening a trust in Denmark, you should note that this kind of structure is not regulated by the authorities in this country. Our experts in Danish company formation are at your disposal to offer alternatives.
Foreign living trusts used in Denmark
Using a living trust in Denmark can be used by Danish residents for estate planning, but the trusts are often established under jurisdictions from foreign countries, such as the USA or the UK. Moreover, residents in Denmark can use the benefits of a foundation for wealth planning as this structure has a strong legal base in this country. Key benefits of Danish residents opening foreign trusts abroad include:
- Control of assets;
- Private transfer of wealth;
- Flexible succession planning;
- Legal protections from claims or disputes.
Our specialized team of Danish company formation agents can offer more information about why it is not possible to open a trust in Denmark and what other options are legally available in this country.
Foreign directed trusts used in Denmark
A directed trust operates the separation between administrative and investment responsibilities between different parties. For example, and administrative trustee oversees the technical responsibilities of the trust structure in Denmark, while the trust advisor directs investments or distribution decisions of the Danish trust.
Such trusts are recognized in Denmark when they are governed by foreign laws and their key advantages include:
- Greater control over complex investments;
- Increased confidentiality and asset protection;
- Legal clarity for international estate plans.
Regarding opening a trust in Denmark, is it important to note that these strucures do not have a legal base in this country. Our specialists can offer instead specialized support in foreign trust management.
Foreign trusts among Danish investors
While Denmark does not offer statutory trust structures, its high level of international investment and open legal infrastructure has led to increased use of foreign trusts in personal wealth planning. For instance, Danish wealthy individuals often establish trusts in:
- Luxembourg or Switzerland (for EU-aligned regulation);
- The USA. (especially Nevada Delaware) for dynastic and directed trusts.
If you are looking for information with regard to opening a trust in Denmark, you should know that this type of structures are not regulated in this country, but our Danish company formation agents can offer support in managing foreign trusts or opening a foundation in Denmark.
Data on Danish investments
According to Statistics Denmark, the financial sector of Denmark presents the following data in 2025:
- The investors equity was of 2,472 bn DKK in April 2025;
- The net transactions of households represented 0.98 bn DKK;
- The insurance provisions of the pension sector recorded 4,422 bn DKK in the 1st quarter of 2025.
For professional assistance regarding company formation in Denmark and guidance through the process of using an international trust in Denmark, do not hesitate to contact us.