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Why Choosing Cyprus for International Trusts (CIT)

The Cyprus International Trust regime enables non-tax residents of Cyprus to create a Trust in Cyprus and enjoy the highest possible degree of asset protection and create estate planning internationally along with the tax benefits and strict confidentiality.

HOW IT WORKS:

  • The Settlor transfers the property/assets to a legal or physical person, the Trustee, who holds the property for the benefit of the beneficiary/ies in accordance with the terms of the Trust Deed.
  • The following conditions must be met in order to have a Cyprus International Trust:
    • The Settlor, must not be a resident of Cyprus during the calendar year, preceding the year of creation of the Trust; AND
    • The beneficiaries, with the exception of charitable institutions, must not be resident of Cyprus during the calendar year, which precedes the year of creation of the Trust; AND
    • At least one of the Trustees must be a tax resident of Cyprus throughout the life of the Trust

Advantages of an International Trust:

  • Exclusive jurisdiction of Cyprus courts regarding the validity of the Trusts and the exclusion of foreign judgements on Cyprus International Trust issues.
  • The provisions of the Cyprus International Trust Law have express superiority over any other law in Cyprus.
  • Powers of a Trustee, Protector, Settlor and Trust Enforcement Supervisor.
  • Possibility to grant extended powers to Settlors. Settlor may exercise control although appointment of Protector/Trustee.
  • Avoidance of forced heirship rules.
  • Asset protection vehicle.
  • Flexibility on investments and perpetual accumulation of income.
  • Flexibility of Terms.
  • Ability on changing the proper Law.
  • Ability in amending the Trust Deed.
  • Strict confidentiality of Trust documents.
  • Low stamp duty.
  • Nil taxation of income and gains of a Cyprus International Trust abroad.
  • Significant tax planning possibilities.

Confidentiality:

  • No formal registration is required.
  • Complete confidentiality – non disclosure of information.
  • No requirements for submission of tax return.
  • Confidentiality of beneficiaries and trust activities are prevented on Chapter 11 of Trust Law.
  • Transferability: The Cyprus international trust can transfer to a trust of another destination at any time.
  • The Trust is not affected in case the Settlor goes bankrupt.
  • The Settlor, may through a Cyprus international Company controlled by the trust, become a Trustee or its sole Trustee therefore effectively managing it.

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