A Cyprus trust has become a popular choice for investors and many high net worth individuals to safeguard their assets from instable climates in their home country or to protect their wealth for their future generations. It is advised that you seek the advice of a professional consultancy firm that specialize in trust formations, in order to ensure you form the most suitable type of trust to meet your individual asset protection and tax planning needs.
How to open a Cyprus Trust
A trust in Cyprus, or Cyprus International Trust as it is formally known is an excellent asset protection tool used by individuals and companies from across the globe. In order for a Cyprus International Trust to come into effect, the settlor cannot be a permanent resident in Cyprus while a minimum of one trustee must permanently reside in Cyprus. The trust beneficiaries are not permitted to reside permanently in Cyprus, and the trust property is not permitted to include any immovable Cyprus property.
A Cyprus International Trust must also execute the following parties; settlor, trustee, beneficiaries and protector. The settlor is the individual responsible for forming the trust for the benefits of their chosen beneficiaries. The trustee is a nominated individual selected by the settlor, who must be of sound mind and act in the best interests of the beneficiaries at all times. Finally, the protector is an impartial individual that is responsible for ensuring the trust is managed by the trustee in accordance with the trust deed.
There are many reasons to form a Cyprus International Trust and some of these are detailed below;
– 100% anonymity
– Great levels of asset protection
– Favorable tax planning
– No estate duty
– Tax exempt
– No inheritance tax
It is essential that all Cyprus International Trusts are compliant with the relevant laws of Cyprus, which include the International Trusts Law 1992.