Cyprus International Trusts

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

Comments are closed