Secure Your Wealth, Protect Your Legacy, and Plan for the Future with Cyprus International Trusts
Why a Cyprus International Trust?
A Cyprus International Trust (CIT) is one of the most flexible, robust, and internationally recognized legal tools for wealth protection, asset management, and estate planning. Governed by Cyprus’s progressive legal framework, the CIT allows high-net-worth individuals, business owners, and families to protect their assets, ensure intergenerational wealth transfer, and strategically optimize their global tax position.
With its strong legal protections, confidentiality, and favorable tax regime, Cyprus is an ideal jurisdiction for individuals and families seeking to safeguard their wealth from legal claims, creditors, and economic uncertainties.
Key Benefits of a Cyprus International Trust
Comprehensive Asset Protection
Assets settled in a Cyprus International Trust are protected from creditors, litigation claims, and political or economic instability in other jurisdictions.
Tax Efficiency
A CIT offers significant tax advantages, including:
No taxation on income and gains from assets held outside of Cyprus.
No inheritance tax, estate tax, or wealth tax.
Assets within the trust are exempt from Cyprus capital gains tax (except for immovable property situated in Cyprus).
Confidentiality
Cyprus law ensures the absolute confidentiality of trust details, including the identity of the settlor, beneficiaries, and trust assets. Disclosure is restricted except under a court order.
Flexibility in Trust Structure
The CIT framework offers flexibility to:
Include multiple beneficiaries, including individuals, charities, or corporate entities.
Tailor specific terms for distributions, asset management, and succession planning.
Allow amendments or modifications to accommodate changing circumstances.
Wealth Preservation for Future Generations
Trusts provide a structured framework for estate planning and intergenerational wealth transfer, ensuring the seamless management and distribution of assets.
Recognition and Stability
Cyprus International Trusts are globally recognized and supported by a strong common law legal framework.
Control with Protectors and Reserved Powers
The settlor can retain certain rights, such as the ability to revoke or amend the trust.
A protector can be appointed to supervise the trustee, ensuring adherence to the settlor’s wishes.
How Cyprus International Trusts Work
A Cyprus International Trust involves three key parties:
- Settlor: The individual creating the trust and transferring assets into it.
- Trustee: A professional or legal entity responsible for managing the trust assets.
- Beneficiaries: Individuals, families, or entities who will benefit from the trust assets.
Eligibility Criteria for Establishing a Cyprus International Trust
- The settlor (creator of the trust) cannot be a resident of Cyprus in the year prior to establishing the trust.
- At least one trustee must be a resident of Cyprus during the lifetime of the trust.
- The beneficiaries can include any individuals or legal entities, regardless of their residency.
What Assets Can Be Held in a Trust?
Cyprus International Trusts can hold a variety of assets, including:
- Real estate (outside Cyprus for tax exemptions)
- Cash, bank deposits, and securities
- Shares in companies (including Cyprus Holding Companies for tax efficiency)
- Intellectual property rights
- Investment portfolios
- Life insurance policies
Who Should Consider a Cyprus International Trust?
1. High-Net-Worth Individuals (HNWI)
Protect personal assets from litigation, creditors, or political instability while maintaining tax efficiency.
2. Business Owners
Use a trust to consolidate and manage global business assets or shares in Cyprus Holding Companies.
3. Families
Ensure seamless intergenerational wealth transfer and plan for the future of your beneficiaries.
4. Individuals in Volatile Jurisdictions
Secure assets in a stable, EU-recognized jurisdiction with strong legal protections.
5. Philanthropists
Use a trust to structure and manage charitable donations or establish foundations for social causes.
6. Investors Seeking Diversification
Utilize trusts to diversify holdings and enhance asset protection strategies.
Practical Applications of Cyprus International Trusts
Cyprus International Trusts offer versatile applications, from asset protection to estate planning and tax optimization.
Frequently Asked Questions
1. Who can establish a Cyprus International Trust?
Any non-Cyprus resident can establish a CIT, provided they meet the eligibility requirements under Cyprus law.
2. Can I retain control over the trust?
Yes, settlors can reserve certain powers, such as the ability to revoke or amend the trust or appoint a protector to supervise the trustee.
3. How confidential is a Cyprus International Trust?
CITs are subject to strict confidentiality laws. Details of the trust, including the identity of the settlor and beneficiaries, are not disclosed publicly.
4. What are the tax implications of a CIT?
- Income and gains from assets held outside Cyprus are not taxed in Cyprus.
- There is no inheritance tax, wealth tax, or capital gains tax for assets outside of Cyprus.
5. How long can a Cyprus International Trust last?
A CIT can exist for an indefinite period, providing long-term security and wealth preservation.
6. What types of assets can a CIT hold?
CITs can hold various assets, including cash, securities, real estate, shares, intellectual property, and investment portfolios.
7. Can a trust hold shares in Cyprus Holding Companies?
Yes. A CIT can hold shares in a Cyprus Holding Company, offering additional tax and operational benefits.
8. How can I use a CIT for estate planning?
A trust allows you to define how and when assets are distributed to beneficiaries, ensuring structured wealth transfer across generations.
Secure Your Wealth for Generations
Take control of your financial legacy and protect your assets with a Cyprus International Trust.
