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Cyprus International Trust - The most effective legal way to protect your assets



A Cyprus International Trust (CIT) as it is called in Cyprus and according to law, is considered to be among high net worth individuals globally, the ideal legal way and a very effective one for that matter, to protect their assets.


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A trust is in general a legal entity that may be created to achieve a number of goals depending on its purpose. As per the main principle though, a trust owns assets which are managed by a trustee and are held from the beneficiaries of the trust.

A Cyprus International Trust (CIT) as it is called in Cyprus and according to law, is considered to be among high net worth individuals globally, the ideal legal way and a very effective one for that matter, to protect their assets.



Cyprus trust law is mainly regulated by the Trustee Law, Chapter 193 and the International Trusts Law of 1992, and is essentially based on the English system. On the 8th of March 2012 the House of Representatives in Cyprus enacted the International Trusts (Amending) Law of 2012 effecting various structural amendments to the International Trusts Law of 1992.

This development created a very favourable and modern trust regime for Cyprus, which safeguards to the highest possible level the interests of international investors – settlors and beneficiaries. That is because any trust deed governed by the Cyprus law, which in essence includes the “Settlors”,” Trustees “and “Beneficiaries” of a trust, may not be affected by a foreign law.

A Cyprus International Trust (CIT) may be employed not only for the purpose of preserving family wealth as it is widely known as the reason one may proceed in structuring a trust but also as an effective tax planning and investment vehicle.

It is important to emphasize that the whole framework provides high confidentiality and as the registration of a Cyprus International Trust is optional and that there are no reporting requirements.



The following is a list of reasons why a high-net worth individual should
consider the structuring of a Cyprus International trust:





- To protect assets
- For Tax planning & optimization of taxes purposes
- As an investment vehicle
- For Property inheritance purposes
- To Create a succession plan for a family business



- For Estate planning purposes
- For Wealth management purposes
- For the purpose of avoiding probate
- To determine how a person’s money should be managed and distributed



Tax benefits



THERE ARE A NUMBER OF TAX RELATED BENEFITS WHICH MAKE THE STRUCTURING OF A TRUST
IN CYPRUS INDEED VERY ATTRACTIVE





1. Any income, gain or profits that are generated from a source outside of Cyprus are exempt from income tax, capital gains tax and generally any taxes in Cyprus


2. In Cyprus there is no inheritance tax or estate duty


3. Distribution of untaxed income in Cyprus to the beneficiaries


4. If a foreign resident or retired in Cyprus receives capital from a trust that is not resident in Cyprus this is not taxable on the trustee.





5. Dividends, interest or royalties received by a CIT from a Cyprus international business company (offshore company) are not taxable and not subject to any withholding tax.


6. Worldwide income, profit and gains are taxable in Cyprus only if the beneficiary is a Cyprus tax resident. If the beneficiary does not reside in Cyprus, then he/she is taxed only based on Cyprus sourced income and in accordance with the Cyprus income tax laws.


7. In case of migration to a high tax jurisdiction, a Cyprus International Trust (CIT) may be used in order to obtain tax advantages by protecting assets with the CIT.



For initial advice, complete details, the process, and how our firm can help you please contact us at info@aristidou.com





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