Cyprus International Trusts
Oxford ensures that its Clients can effectively take advantage of the Cyprus International Trust and utilise all the benefits with respect to their assets, inheritance or for any other purpose the Cyprus International Trust can offer. For professional advise and assistance please contact solutions@oxfordcy.com.
The Cyprus Trust is an ideal structure for asset protection and estate planning at the maximum tax efficiency. Cyprus through the implementation of the new Cyprus International Trust law is now rightfully on the 1st rank of International Trust Jurisdictions.
CYPRUS INTERNATIONAL TRUST KEY BENEFITS
Under the Cyprus International Trust Law (as amended), a trust will qualify as a Cyprus Trust if:
- Facilitates tax-efficient wealth planning and may help reduce overall tax liabilities, subject to the applicable tax laws in the relevant jurisdictions;
- Provides flexibility and control over the distribution of assets upon death, ensuring that wealth passes to beneficiaries in accordance with the settlor's wishes;
- Helps avoid the delays, costs and publicity associated with probate proceedings, facilitating the efficient transfer of assets to beneficiaries.;
- Provides strong asset protection by separating trust assets from the settlor's personal estate, helping safeguard them from future creditor claims, subject to applicable law.
- The settlor and/or the beneficiaries must not have been Cyprus tax residents during the calendar year immediately preceding the year in which the trust is established;
- At least one trustee must be resident in Cyprus throughout the life of the trust.
TAX ASPECTS OF CYPRUS INTERNATIONAL TRUSTS
The Cyprus Trusts enjoy significant tax advantages, providing the essential tax planning opportunities to interested parties. We analyze below the most important tax advantages available for tax optimization of Cyprus International Trusts:
OTHER BENEFITS
- All matters and disputes relating to Cyprus Trust will be determined by the laws of Cyprus without reference to the law of any other jurisdiction. This affords legal certainty and a reliable dispute resolution forum;
- An international trust containing a choice of law clause in favour of Cyprus law is fully protected from unfounded foreign judicial claims as a matter of public policy and order;
- The settlor maintains extensive reserved powers over the trust. The trust may also state that the trustees’ powers are exercisable only with the consent of the settlor or any other person specified in the terms of the trust;
- The settlor and the beneficiaries or any of them may become resident in Cyprus;
- There is no limit on the duration period for which a trust may continue to be valid;
- Trustees maintain the same investment powers as those of an absolute owner, allowing them to invest in a broader range of investments for the best interests of the beneficiaries;
- The trustee may invest in movable and immovable property both in Cyprus and overseas, including shares in companies incorporated in Cyprus.