Cyprus International Trust

The Cyprus International Trusts which, are an essential tool for confidentiality and asset protection of foreign investors, are regulated by the International Trust (Consolidated) Law of 1992 and 2012 which has been updated in order to re-establish Cyprus as a preferred trust jurisdiction.

The definition of an International Trust as provided by article 2 of the said law is a trust in respect of which:

(a) The settlor, being either a natural or legal person, is not a resident of the Republic during the calendar year immediately preceding the creation of the trust

(b) at least one of the trustees for the time being is a resident in the Republic during the whole duration of the trust

and

(c) no beneficiary, whether a natural or legal person, other than a charitable institution is a resident of the Republic during the calendar year immediately preceding the year in which the trust was created, provided that the term “resident of the Republic” has the meaning allocated to the term by the Income tax Laws of 2002 to (No.2 of) 2011

Moreover, Cyprus international trusts are subject to favourable tax treatment and particularly article 12 of the law provides that:

  • The income and gains of an international trust which are earned or deemed to be earned from sources within and outside the Republic are subject to every form of taxation imposed in the Republic in the case where the beneficiary is resident in the Republic.
  • Where the beneficiary is not a resident of the Republic, the income and profits of an international trust which are earned or deemed to be earned from sources within the Republic are subject to every form of taxation imposed in the Republic.

The duration of an International Trust can be indefinite.

Our experienced staff can assist clients with every aspect of setting up a Cyprus International Trust.