Share this post

Print

In the complex realm of asset and wealth protection, the Cyprus International Trust stands out as a highly desirable instrument defined by distinctive characteristics shaped through judicial interpretations, given the absence of a rigid statutory definition in Cyprus law. At its core, a trust arrangement unfolds as a structured framework where the “Trustee,” acting as the custodian of the entrusted property, assumes the responsibility of managing it for the ultimate benefit of another party, known as the “Beneficiary.” This unique fiduciary relationship serves as the cornerstone of the Trust, making it a potent tool for safeguarding and optimizing financial assets on a global scale. Beyond the Beneficiary and the Trustee, the Trust also involves a “Settlor,” also known as the Grantor or Trustor, who holds the entitlement to define terms, specify beneficiaries, and outline Trustee powers.

The Cyprus International Trust, with its lack of a rigid statutory definition, is highly sought after as an asset and wealth protection vehicle, distinguished by the distinctive fiduciary relationship among the Settlor, Trustee, and Beneficiary, thereby serving as a powerful tool for global financial asset safeguarding and optimization.

The legal framework that governs trusts in Cyprus is primarily founded on two key statutes: the Trustees Law, Cap. 193 (“The Trustees Law”), and the International Trusts Law, No. 69(I)/92 (“The International Trusts Law”). The latter was first enacted in July 1992 and amended by the International Trusts (Amending) Law, No. 20(I)/2012. These legislative instruments collectively shape and regulate the landscape of trusts within the jurisdiction.

Furthermore, Cyprus has ratified with the law No. 4(III) / 2017 the Hague Convention on the law applicable to trusts and on their recognition, hereinafter referred to as “The Hague Convention on Trusts” whereby this convention specifies the law applicable to trusts and governs their recognition.

TheCyprus International Trust offers a strategic blend of advantages.

On the one hand, it operates exclusively under the authority and interpretation of the laws of the Republic of Cyprus, eliminating the application of foreign laws. This establishes it as a robust tool for safeguarding assets. Noteworthy features include perpetual existence, allowing trusts to endure indefinitely, and the ability for the Settlor to retain specific powers. On another note, the Trustees possess unrestrained investment authority, empowering them to enhance trust assets. Maintaining confidentiality is a key facet, with regulatory authorities’ Registers of Trusts divulging limited information—restricted to the trust’s name, trustee’s name and address, establishment date, termination date, and changes in governing law. Access to these registers is restricted, requiring proof of “legitimate interest.”

Further advantages encompass the option for the Settlors to relocate to Cyprus post-trust establishment, leveraging benefits from the Cyprus Non-Domicile Scheme. The trust proves instrumental in circumventing “forced heirship” regulations present in specific jurisdictions. Cyprus, as a jurisdiction, is recognized for its credibility, anchored in a legal system rooted in English common law and equity.

Finally, the stability of the tax regime, coupled with wealth preservation and asset segregation, contributes to the appeal and effectiveness of the Cyprus International Trust.

As your trusted partner in establishing and managing Cyprus International Trusts, Eurofast, stands out for several compelling reasons. With over 40 years of proven excellence in the field, our seasoned team of experts brings a depth of experience. Moreover, our in-depth knowledge of the intricacies of Cyprus trust law, coupled with a successful track record, positions us as a reliable authority in the field.

Your trust in Eurofast is an investment in a relationship backed by expertise, integrity, and a commitment to safeguarding your assets. Experience the difference with us as your Cyprus International Trust partner.

For further information about the Cyprus International Trust, please contact Evgenia Katelari, Corporate Lawyer, at nicosia@eurofast.eu


Eurofast is a regional business advisory organization employing local advisors in over 21 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in  Tax & Transfer Pricing – Payroll & Employment – Accounting & Compliance –Advisory & Corporate. 
Evgenia Katelari Eurofast

Evgenia Katelari
Corporate Lawyer
Eurofast Nicosia
nicosia@eurofast.eu

Tags: