Cyprus Trust (Cyprus International Trust)
Over the past twenty years, Cyprus has developed into one of the most favourable places for international business. The Cyprus low tax regime, its ability to offer sophisticated planning structures, its ability to set up and manage collective investments schemes, the enactment of the Cyprus Trusts Law which provided for the formation and administration of Cyprus international trusts combined with its excellent geographical position and infrastructure where the key factors for its success.
A foreigner wishing to establish a Cyprus trust has the following options:
– To create a Cyprus trust, either by a trust deed or by will;
– To incorporate a Cyprus International company to be the holder or the manager of movable property including securities and stock to be placed in Cyprus trust in the Cypriot corporation or in an overseas company and managed by the Cyprus International Company and vice versa;
– To incorporate a Cyprus subsidiary company or a branch of an overseas corporation to hold or manage movable property placed in trust in the Cyprus subsidiary or branch of the overseas corporation;
– To set up a Cyprus international trust under the provisions of the Cyprus International Trusts Law.
Purpose for setting up a Cyprus international trust under the provisions of the Cyprus international Trust Law
Trusts are usually used by wealthy individuals for the purpose of protecting their estate form inheritance or capital gain taxes in their home country. They can also be used by expatriates settling into a trust before repatriating assets acquired while working abroad, to protect such assets from the tax net of their home country.
Cyprus International Trust Law
Cyprus’ Trust Law is based on the English Trustee Act of 1925. In July 1992, Cyprus enacted The International Trusts Law (Law No. 69/1992) which provided for the formation and administration of Cyprus international trusts. The Cyprus Trust law has been amended on 23 March 2012, the Cyprus International Trust (Amending) Law of 2012.
The clarity and removal of any ambiguities has given the settlors and beneficiaries the highest possible degree of protection and flexibility