Trusts are an effective and increasingly popular tool used by investors as an effective and efficient tax planning tool.
Cyprus is one of the most attractive and beneficial jurisdictions for the creation and administration of a Trust largely due to its stable and advanced legal system which governs the Cyprus International Trusts (1992) which regulates the establishment and administration of Trusts (as amended March 2012).
The Cyprus International Trusts (CIT) can offer numerous tax advantages and is a significant tool in tax planning possibilities.
We can offer you a complete range of Trust related services and a comprehensive range of Trustee services to include the establishment of the Trust and the ongoing administration and trusteeship of Trusts in Cyprus.
Trusts are commonly used for the following reasons:
- As an effective and efficient tool for tax planning; income received by an International Trust is not subject to taxation in Cyprus; dividends or interest received by an International Trust from a Cyprus company is not subject to taxation or withholding tax; gains from the disposal of assets of an International Trusts are exempt from Capital Gains Tax in Cyprus; not subject to Estate Duty in Cyprus.
- For asset protection; an individual can detach himself / herself from assets by transferring all movable or immovable assets to a Cyprus International Trust.
- To gain anonymity and confidentiality; amendments to the CIT Law in 2012 specify that no information can be disclosed by the Trustee or Protector of a Trust relating to the accounts of the Trust such as the Trust Deed or the identity of the beneficiaries unless there is a Court Order to this effect.
- For the protection of minor’s rights; minors rights are protected from individuals that cannot be trusted with the management of assets even after an individual has deceased through the Trustees of a Trust.
Requirements / Features of a Cyprus International Trust
- The Settlor of the Trust does not have to be a resident of Cyprus.
- Likewise Beneficiaries of the Trust do not have to be residents of Cyprus (except in the case of charitable institutions); the Settlor of the Trust can also be a Beneficiary.
- At least one of the Trustees of the Trust must be a permanent resident of Cyprus.
- The property of the Trust can include any movable or immovable property in Cyprus and abroad and shares of companies registered in Cyprus.
Our Trust specialists are more than happy to discuss your own personal circumstances with you and offer you more precise information on how a Cyprus International Trust can help you in protecting your assets globally.
Please contact us so we can explore how best you can benefit from the many advantages that a Cyprus International Trust has to offer.