Anglo-Saxon trusts are not recognised under Spanish law, as the Spanish legal system does not provide for the trust as a legal institution. This absence of recognition has significant consequences in matters of inheritance, asset protection, and international estate planning, particularly for foreign nationals holding assets in Spain.
As a result, structures based on Anglo-Saxon Trusts may face legal adaptation issues when interacting with Spanish property law, succession law, and the Spanish land registry system.
1. Legal Nature and Origin of Anglo-Saxon Trusts
The Anglo-Saxon trust originates from medieval English law, when landowners transferring property to trustees required legal mechanisms to ensure that assets were managed for the benefit of third parties during periods of absence.
Knights heading off to the Crusades entrusted their lands to an administrator, who managed them on behalf of the knight’s wife and children until his return. As disputes arose between the settlor and the trustee, the concept of dual ownership began to take shape in the common law countries: the assets were transferred to the trustee, who became the legal owner, while the settlor held an equitable title. Consequently, these are two distinct forms of ownership with different scopes and content.
In addition to its many applications in the corporate world, the trust can also be used to establish special management of assets and rights forming part of an estate, in defense of some interests that deserve special protection. In the family law context, it can also be used to secure the payment of maintenance or support in matrimonial disputes, or to create a separate estate dedicated to family expenses and shielded from personal debts.
This historical development led to the creation of a dual ownership structure in common law systems:
- Legal ownership: held by the trustee
- Equitable ownership: held by the beneficiary
This dual structure allows trusts to be used in corporate structuring, estate planning, family wealth management, and asset protection strategies in common law jurisdictions.
2. Fundamental Conflict Between Anglo-SaxonTrusts and Spanish Civil Law
The legal concept of trust is incompatible with the Spanish civil law system, which is based on a unitary concept of ownership.
In Spain, property rights are indivisible: ownership cannot be split between legal and equitable title as in common law jurisdictions.
Therefore, this structural divergence creates significant legal friction when foreign trusts attempt to operate or produce effects within Spanish territory.
3. Supreme Court Doctrine on Anglo-Saxon Trusts in Spain
The Spanish Supreme Court has expressly confirmed the non-recognition of trusts under Spanish law, including in its Judgment 338/2008 of 30 April.
The Supreme Court held: “A trust is an arrangement that establishes a fiduciary relationship, where one person holds legal title to property but is under an equitable obligation to maintain or use the property for the benefit of another. A trust may be created inter vivos or mortis causa. It is a legal instrument widely used in common law countries for various purposes; however, it does not exist in Spanish law, either in substantive law or in private international law. (…) As the trust is not recognized as a legal concept, nor is it compatible with our inheritance law, we are limited to apply the provisions of the deceased’s will to the extent that they are valid and in accordance with Spanish law.”
4. Position of the Spanish Land Registry and Administrative Practice about Anglo-Saxon Trusts
The former Directorate-General of Registries and Notaries (now known as the Directorate-General of Legal Security and Public Authority) also addressed the issue in its Resolution of January 24, 2008, regarding the possibility of registering property rights in the name of a legal figure similar to the Anglo-Saxon trust: the “private interest foundation”, which does not exist in Spanish Law.
The case refers to an institution established under Panamanian Law, and created for the purpose of preserving assets and managing the estate assigned by the founder, first for the benefit of the founders’ parents, and after their death, for the benefit of the founders themselves. And as a conclusion, this institution is considered incompatible with Spanish legal personality requirements.
This confirms that foreign legal entities or structures without recognition under Spanish law, like the Anglo-Saxon Trusts, cannot directly hold or register real estate in Spain.
5. Anglo-Saxon Trusts’ legal and succession implications in Spain
The absence of legal recognition of Anglo-Saxon trusts in Spain may have important consequences in cross-border estate planning, including:
- Recharacterisation of trust assets under Spanish civil law
- Direct application of Spanish succession rules to assets located in Spain
- Potential loss of intended asset protection mechanisms
- Conflicts between common law estate planning and Spanish forced heirship rules
- Registration issues with Spanish property located within trust structures
Each case must be analysed individually under Spanish private international law and applicable EU succession rules.
6. Interaction with International Estate Planning
Although Anglo-Saxon trusts are not recognised in Spain, their existence in foreign jurisdictions may still be relevant for determining ownership, succession intent, and estate distribution abroad.
However, Spanish law will independently determine the legal treatment of assets located in Spain, regardless of their inclusion in a trust structure abroad.
7. Possible Legal Alternatives Under Spanish Law
While Anglo-Saxon trusts cannot be directly enforced in Spain, alternative legal mechanisms may achieve similar economic or succession objectives, such as:
- Spanish foundations (where applicable)
- Testamentary structuring under Spanish succession law
- Usufruct arrangements and bare ownership structures
- Corporate holding structures for asset planning
The suitability of each solution depends on the specific structure of the estate and the objectives of the settlor or family group.
8. Legal Advice on Anglo-SaxonTrusts and Cross-Border Succession in Spain
Although Anglo-Saxon trusts are not recognised under Spanish law, there are legal solutions that can be explored on a case-by-case basis. International families and foreign nationals with assets in Spain can structure their estate planning or succession arrangements in ways that achieve similar objectives, while remaining fully compliant with Spanish law. Each situation is unique, and tailored advice is essential to ensure the best possible outcome.
If you are dealing with Anglo-Saxon trusts and need guidance on its legal and succession implications in Spain, a Family and Succession international lawyer based in Málaga can review your case and advise on the most suitable solutions.
Contact me today for personalised legal guidance.
