Cyprus International Trust
In order for a trust to qualify as a Cyprus International Trust and enjoy the advantages afforded by Cyprus law to Cyprus International Trusts, the Cyprus International Trust must comply with the following requirements as regards the settlor, the beneficiaries, the trustees, and the property of the Cyprus International Trust.
Under the Cyprus International Trusts Law the settlor of a Cyprus International Trust may be an individual or a legal entity but may not be a permanent resident in Cyprus.
Under the Cyprus International Trusts Law the beneficiaries of a Cyprus International Trust may be individuals or legal entities but may not be permanent residents in Cyprus.
Under the Cyprus International Trusts Law at least one trustee of a Cyprus International Trust must be a permanent resident in Cyprus. As a rule, Cyprus companies operate as trustees of Cyprus International Trusts.
Under the Cyprus International Trusts Law the property settled in a Cyprus International Trust may be any property other than immovable property in Cyprus.
If the settlor so wishes, (s)he may appoint a protector in the Cyprus International Trust who would have the power to veto certain decisions of the trustees.
Advantages of Cyprus International Trust
Favourable Legal System
The favourable legal system relating to Cyprus International Trusts makes Cyprus a particularly attractive Trust location.
No Exchange Control
Cyprus International Trusts are not subject to exchange control. The absence of exchange control restrictions and the availability of excellent telecommunications and international banking services, make Cyprus a convenient base for the remittance and transfer of funds to Cyprus International Trusts and from the Cyprus International Trusts to their beneficiaries.
Availability of Quality Trustee Services
The presence of a number of reputable international fund management companies on the island and the high standing of the legal and accounting professions ensure the availability of expert advice as well as the competent management services required for the proper operation of a Trust in Cyprus.
A Cyprus International Trust may be transferred to another country’s jurisdiction provided such jurisdiction is able to accept it. At the same time, a trust established in another jurisdiction may be transferred to Cyprus provided the existing jurisdiction of the trust allows for it.
Cyprus International Trusts enjoy important tax advantages. Although taxation considerations relating to Trusts are fairly complicated, the following are indicative advantages.
- Double Tax Treaties
Cyprus has a wide network of double tax treaties and many of these treaties are drafted in such a way that trusts are eligible for their benefits, making it an attractive choice of jurisdiction from the fiscal point of view when considering a settlement of assets into a trust.
Any income of a Cyprus International Trust, whether trading or otherwise, is not taxable in Cyprus.
Dividends, interest or other income received by a Cyprus International Trust from a Cyprus international business company are not subject to tax.
- Capital gains
Gains on the disposal of the assets of a Cyprus International Trust are not subject to tax in Cyprus.
- Individuals retired in Cyprus
A foreign individual who creates an International Trust in Cyprus and retires in Cyprus would be exempt from tax in Cyprus if all the property settled and the income earned is abroad, even if he is a beneficiary.
- Estate Duty
A Cyprus International Trust would not be subject to estate duty in Cyprus.
We have considerable experience in forming and providing trustee services to Cyprus International Trusts.
- Trust Formation
We have considerable experience of assisting clients to form Cyprus International Trusts, guiding them on all legal and practical aspects of drafting the Trust Deed. Our experienced lawyers will help you to ensure that your Trust is both legally valid and that the intentions you express as the settlor in the Trust Deed are enforceable.
- Trustee Services
We have considerable experience in acting as trustees for a number of Cyprus International Trusts. Our experienced lawyers will be able to discuss with you the best way to structure the trustee services for your Trust depending on your intentions.
To learn more about Trust Formation and Trustee Services, please Contact Us for more information.