What is a Cyprus International Trust   

A Cyprus International Trust is a statutory legal entity. It is created by Law 69 (1)/1992 of which article 2 provides:

By Cyprus International Trust it is meant as follows:

1. A Settlor who is not Tax Resident in Cyprus in the year before the year in which the Trust is created.
2. The Beneficiary or beneficiaries and no one of whom are not Tax Resident in Cyprus in the year before the year in which the Trust is created.
3. The Trust provides for a Trustee who during the existence of the Cyprus International Trust is a person tax resident in Cyprus.

What are the great benefits of a Cyprus International Trust

1. First it offers you O% Tax on all revenues, income, profits from all the activities of the Trust out of Cyprus. Unlike a company the Cyprus International Trust pays Zero Cyprus Corporate Tax!
2. The Cyprus International Trust affords you a full protection of assets against the claims of any third parties such as creditors, banks, heirs etc.
3. Full confidentiality is also one of the great benefits of the Cyprus International Trust.

These three benefits are not offered by any other trust in the EU and maybe worldwide. These benefits are granted by the legislation creating the Trust so they cannot be violated even by a court order of any foreign court. Another great advantage of the Cyprus International Trust is that you can have a fast Cyprus Bank Account for it. A very important advantage of a Cyprus International Trust is that is can accept a Company as the Settlor ensuring more protection and confidentiality. If you need any information or assistance for Cyprus Company Formation please get in touch with us and one of our Administrators will contact you immediately.

 

How Can I set up a Cyprus International Trust?

For the creation of a Trust three parties at least are necessary as follows:

1. The Settlor

The Settlor is the person who sets up the Trust. He is the one who also contributes the Trust fund or Trust property. He can be any physical person of age, of sound mind and who is not a bankrupt. Nationality is of no consequence. A legal entity of any country can also be the Settlor. There can be more than on Settlors in a Trust.

2. The Trustee

The Trustee has to be a Cyprus resident. Such person is usually a lawyer who is legally trained and of sound integrity. As the term insinuates he is a person who is trusted by the Settlor. Any physical person of age, of sound mind and who is not a bankrupt can be the Trustee. A legal entity registered in Cyprus can also be the Trustee in a Cyprus International Trust. There can be more than one Trustees.

3. The Protector

The Protector is a person appointed also by the Settlor. Hi role is to overview the Trustee to make sure that he is carrying out the instructions of the Settlor and to step in where there are any infringements of the terms of the Trust or any fraud. The Protector has powers to remove the Trustee or apply to the Court for his removal. Not all Trusts have a Protector appointed.

4. The Beneficiaries

The Beneficiaries as the term connotes are those who will benefit from the Trust. They can be the wife or children of the Settlor, a non-profitable organization, an old people`s home and so on. The class of the beneficiaries can include physical and legal entities.

5. Finally the Trust Fund

The trust fund or trust property is the property which is assigned by the Settlor to the Trust. If it is money is has to be deposited in the Bank account of the Trust or the Trustee. If it is any movable property such as gold or diamonds they have to be handed over to the Trustee who will deposit them is safe deposit at a bank. If the property is real estate it has to be transferred into the name of the Trust or the Trustee who will hold it on trust for the Trust! A Trust Property can include the shares of a company. So the Trust can be the owner of a company.

6. How long can a Cyprus International Trust be Valid For

A Cyprus International Trust can last for as long as the Settlor designates in the terms of the Trust. It can of course be of an indefinite period. The Settlor can reserve to himself the right to collapse the Trust at a specified time in the future. This will be termed as friendly trust however and may not be convincing where investors are sought after for the purpose of carrying out an investment.

A lot more legal and technical details can be said about this most important legal entity and the great benefits it confers on the Settlor and the Beneficiaries. If you need more information or advice get in Contact with us and one of our Trust Lawyers will assist you right away.