Many Benefits of a C I T

Zero Tax on All Profits From Investments

1. Relevant Legislation is the Cyprus International Trusts Law 69(1)/1992, Article 12(1) which affords one of the great advantages of a Cyprus International Trust which is that it offers you absolutely 0% Tax on all revenues, income, profits from all the activities of the Trust outside of Cyprus. Such activities can be investments in real estate in apartments in Barcelona, villas in Paris, a Hotel in Santorini, or a factory in Germany. It can also be shares in Google, or Microsoft or Bonds of the USA. You can choose your Trust to be the 100% owner of the shares of a company you set up in the UK to trade in commodities. All profits, income or revenue coming from these activities to the Cyprus International Trust are absolutely exempted of any tax whatsoever.

 

Full Protection of Assets Against Creditors

2. Article 3(2) of the same Law, provides that the Cyprus International Trust affords you a full protection of assets against the claims of any third parties such as creditors, banks, heirs etc. So if the Settlor that is you, has any debts to any third parties and they secure a Court Decision against you in a Court in the UK or the USA, that Judgment cannot be executed against any asset or fund of the Trust! Similarly if one of the Beneficiaries is indebted to a Bank, that Bank cannot enforce a Judgment against the property of the Trust even if it is clear that the Beneficiary has a particular and specified share in that Trust property. There is a firewall of protection against any claim.

 

Full Confidentiality of the Settlor and Beneficiaries

3. Full confidentiality is also one of the great benefits of the Cyprus International Trust. Article 11(1) of the Cyprus International Trusts Law gives full non-revelation powers to the Trustee of the Trust who cannot be forced by any foreign Court to reveal information such as what the purposes of the Trust are, who is the Settlor, who are the Beneficiaries or what is the property, funds, or assets of the Trust. The Settlor is also protected behind this curtain and he does not have to reveal anything to anyone regarding the Trust. Another aspect of confidentiality is that the there is no State Register, in which the general public or any bank , income tax official, or creditor can search to find out details of the Trust like they can do with a company!

 

Benefits of a C I T – Your Presence Not Required

4. Your Presence is not required for the creation and activation of your Cyprus International Trust! It can be created entirely in your absence, by email, fax and courier. So you can set up your Cyprus International Trust from the comfort of your office and have a valid active Cyprus International Trust in a few days. The presence of the Beneficiaries is not required either, nor is their signature or notification required either. If you want to read more information on the creation and setting up of a Cyprus International Trust please follow this link.

 

Benefits of a C I T – You Can Re-Domicile Your Trust

5. Re-Domiciliation of your Cyprus Trust is possible, making it a very versatile and practical tool than ever. So if for any reasons, legal, tax, business or family you decide to migrate your Cyprus International Trust to another country this is possible by the Cyprus International Trusts Law 69(1)/1992. This is a great advantage also not offered by many other jurisdictions.

 

Benefits of a C I T – A Legal Entity on Its Own Merits

6. The Cyprus International Trust is a legal entity of its own. This gives the Trust immense possibilities, as that means that the Trust can own property, shares, gold, bonds, a company, or it can open and operate a bank account. It can also own a luxury car which is makes available to the Settlor, or a villa in St. Tropez which the Settlor or any Beneficiary can enjoy! The possibilities are endless, with very expensive jewelry being often on the list for the Settlor`s wife of course.
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.

 

One of the Benefits of a C I T , is that it can open a Bank Account in it name giving it immense possibilities. It can also own the 100% of the shares of a company. That makes it possible for a C I T, to carry our full trading operations. If you are interested in a Cyprus Company Registration, our Firm can set up a company for you in 6 days. Email us at [email protected]