International trusts have become more popular in the last few years due to their financial and tax benefits. From a tax planning point of view, a trustee can be a Cyprus International Company and/or a partnership. CPV have extensive experience and knowledge in setting up and maintaining a Cyprus International Trust.
There are necessary conditions in order to set up a Cyprus International Trust:
- The settlor is not a permanent resident in Cyprus
- The trust property does not include immovable property situated in Cyprus
- At least one trustee is resident in Cyprus
- The beneficiary is not a permanent resident in Cyprus
There are several benefits relating to Cyprus International Trusts:
- Exemption from income tax, capital gains tax, special contribution or any other taxes in Cyprus
- No estate duty or inheritance tax in Cyprus
- There are no reporting requirements in Cyprus
- Dividends, interest or royalties received by an International Trust from a Cyprus International Business company are not taxable and not subject to any withholding tax
- There are no exchange control restrictions
- Trust capital received in Cyprus by a foreigner resident or retired in Cyprus is not taxable on the trustee
