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.
