Through a trust, the settlor, i.e., the person setting up the trust, property is held by one or more persons called the trustees who hold it for the benefit of another called the beneficiary and manage it in accordance with specific instructions.
Trusts are often used as a way to secure confidentiality regarding the identity of the beneficiary as well as to avail to the persons or entities behind them of the important tax advantages enjoyed by the particular scheme.
International trusts, i.e., trusts with property and income coming from outside Cyprus are governed by the International Trusts Law of Cyprus, which amongst others provides the following:
- All sorts of income of an international trust are not subject to any tax in Cyprus.
- There is no withholding tax on interest, dividends or other income acquired by the trust from an international company based in Cyprus.
- No capital gains tax is imposed on the gains of the disposal of any assets of an international trust.
If you are interested in proceeding with setting up an international trust in Cyprus, please email us the following information together with any questions or issues you might have:
- The powers of the trustee(s), i.e., whether the trust will be fixed or allow some discretion to the trustee, thereby being discretionary.
- Name and address of the settlor and certified copies of his/her passport.
- Name and address of the trustee. Please note that the trustee must be resident in Cyprus. Markou & Co LLC can provide trustee services, thereby assisting its clients in meeting this requirement.
- Name of the Trust
- The initial trust fund
- Name and full address of the beneficiaries together with certified copies of their passports
- Name and address of the Nominator who is usually the same person as the settlor