A trust is a fiduciary relationship in which the Settlor gives the right to the Trustee to hold title to a property (trust property) for the benefit of the Beneficiary. The trustee has the legal title to the trust property, whereas the Beneficiary has the beneficial title to the trust property. The ultimate beneficial owners of the trust property are the beneficiaries. Click here for more information.
A Cyprus international trust can be founded by a settlor who is not a tax resident of Cyprus during the founding of the trust and the year after the trust was founded.
A Cyprus international trust income is exempt from tax. While Settlors and Beneficiaries remain anonymous during forming of the trust, their names are revealed when opening a bank account for the trust.
A trust has become a popular option in the corporate business structure
and is the go-to option for:
- Tax planning
- Protection of assets
- Protection of personal bankruptcy
- Remaining anonymous
- Charity and donations
- Managing investments
- Pension scheme
These are the certainties necessary for creating
a credible Cyprus International Trust:
- Certainty of Intention: evidence of express intention of the settlor to create the trust. This is proven by the Trust Instrument
- Certainty of Subject Matter: the trust property must be ready for identification
- Certainty of Objects: the identity of all beneficiaries must be verified at the time of creating the trust
Types of Cyprus International Trusts:
- Express private trust
- Charitable trusts
- Fixed trusts
- Discretionary trusts