- The settlor and/or a beneficiary were not Cyprus tax residents in the year preceding the year of creation of the trust. There is no longer any prohibition on settlors relocating to Cyprus after the establishment of the Trust;
- At least one trustee is resident in Cyprus (Cyprus International Business Company) (IBC) or partnership is considered as a resident trustee); and
- The beneficiary(ies) and the settlor may relocate to Cyprus after a year following the trust creation.
Onshore and Cyprus International Trusts
Our services include:
- Our law firm specializes in the creation and administration of trusts in Cyprus under the “International Trusts (Amending) Law of 2011” and in various jurisdictions under the respective legislation
- We provide trustee services to large multinational corporations quoted on organised stock exchanges as well as high net worth individuals. Trust assets held comprise of cash, bank deposits, shares, jewellery, real estate and other tangible or intangible property
Benefits of a Cyprus International Trust
- Dividends and interest received from a Cyprus international business company are not taxable and not subject to any withholding tax.
- No estate duty or inheritance tax in Cyprus
- Worldwide income, profit and gains are taxable in Cyprus only where the beneficiary is a Cyprus tax resident. Those who are non-residents are taxed only on Cyprus sourced income
An International Trust may be set aside by the settlor’s creditors to the extent that is proven to the satisfaction of the Cyprus Court that the International Trust was made by the settlor with the intent to defraud the creditors. The burden of proof of this intent shall be on the creditors.
Confidentiality and non-disclosure
Confidentiality is of vital importance and is imposed on the trustees and on any other person not authorised by law to have knowledge of information or documents which disclose any of the matters referred to hereinbelow. However, the court may order the disclosure of information or documents in criminal or civil proceedings cases.
All matters relating to the validity or administration of an international trust or the transfer / disposal of trust property will be determined by the laws of Cyprus without reference to the law of any other jurisdiction.
Also the law relating to inheritance or succession in force in Cyprus or any other country will not in any way affect the validity of the international trust or any transfer or disposition of trust property.
Further, the trustees’ fiduciary powers and duties and the powers and duties of any protectors of the trusts are exclusively governed by Cyprus law.
Settlor Reserved Powers
The settlor maintains extensive reserved powers, such as power to retain a beneficial interest in trust property, or to act as the protector or enforcer of the trust without affecting the validity of the trust. Such reserved powers also include the power to revoke, vary or amend essential terms of the trust, to change the governing law of the trust, to act as a director or officer of any corporate entity wholly or partly owned by the trust and to appoint or remove any trustee, enforcer, protector or beneficiary.