Our International Business Companies and Trusts Department provides specialised and expert advice to corporate and individual trustees in holding International Trust set up in Cyprus.
Used as a means of practical international tax planning and business organisation, trusts have been consistently expanding. With incentives introduced over the years to promote its position as an international business financial centre, the resultant ease of establishing and maintaining trusts in Cyprus has made the island a popular choice.
International Trusts are not taxed in Cyprus. In fact, they enjoy significant tax advantages and provide the opportunity for effective tax planning, offering foreign investors freedom of movement of funds.
The main advantages may be summarised as follows:
- All income and profits of an International Trust are not taxable in Cyprus.
- Dividends, interest or other income received by a Trust from a Cyprus International Business Company are also neither taxable nor subject to withholding tax.
- An alien who creates an International Trust in the Republic of Cyprus and retires in Cyprus is still exempt from tax if the property and income of the Trust are situated outside Cyprus, even in the case where he himself is the beneficiary.
- An International Trust created for estate duty planning purposes is not subject to estate duty in Cyprus.
- Cyprus International Trusts are not subject to exchange controls
- A Cyprus trust may be used to obtain the benefit of an applicable Double Tax Treaty or provide asset protection where this is required.
Contact us for further information on the concept, practicalities and benefits of establishing an International Trust.