International Trust

Cyprus International Trusts (CIT) are regulated by national law on trusts, modelled on English regulation. Cyprus’ position as a reputable international financial centre provides incentive opportunities for setting up and operating a trust. There is maximum protection and flexibility for trust structures and combined with its professional workforce and infrastructure, ensures the successful implementation of CITs as per the relevant legislation in place.  

Rules on the settlor and beneficiaries, tax residency thresholds and the definition of a trust have all been modelled toward encouraging international business in Cyprus.

Trustee investment and tax exemptions make the CIT an attractive solution for asset planning.The creator of the CIT (settlor and the beneficiaries) must not be tax residents in Cyprus during the year that precedes the year creating the trust. Cyprus as a financial and adjudicating centre has jurisdiction to try any disputes relating to the CIT.

Some of the uses of a CIT include inter alia, for accumulation of income and capital, a tax planning vehicle for change of residence in the future, as a holding vehicle in Cyprus companies, protection of assets for the benefit of minors, family property protection, charitable trusts, creditor protection, transaction confidentiality, to provide pensions for employees and dependants, to provide an incentive to the workforce through employee trusts of various kinds. 

Antonis Frangos LLC can assist in developing the structure, management and eventual liquidation of a CIT as well as drafting all the necessary legal documents deemed essential for the trust. Consulation can be provided on the procedure related to the creation of the trust, the appointment of trustees, protectors and enforcers in Cyprus and foreign jurisdictions and the law governing CITs as regards any legal and tax issues, trustee powers and beneficiary rights, legal interpretation of documents and any necessary representation in court proceedings.