Put simply, a Trust is the transfer of funds or other valuable assets to nominated Beneficiaries through a Trust Deed to a Trustee who acts as Administrator and who complies with instructions as to the disposal of the assets.

Many people assume that a trust works only for the benefit of the ultra-wealthy as a way to protect and pass on significant sums of money to family, friends, or entities after they pass away. Whilst this scenario is true, a trust will allow anyone to ensure that their cash and assets continue to be useful beyond their death. And setting up a trust isn't difficult or financially burdensome.

Cyprus International Trusts (CITs)

Cyprus International Trusts are acknowledged as essential tools in the protection of assets. Further strengthening of associated laws has added many new and significant features to the benefits of CITs, and has helped establish Cyprus as a leading offshore and financial centre and a secure trusts jurisdiction. 

To make a CIT as tax-efficient as possible, our attorneys dedicate their specialised legal and financial knowledge to the individual client and their trust requirements, thereby ensuring maximum objectivity. Needless to say, total confidentiality is at the core of all matters.

Asset Protection

It is prudent to ensure that one’s assets are legally protected from unwelcome or frivolous claims, both today and in the future. For many people, making certain that their assets are passed to their loved ones after they die is of paramount importance, and this can be achieved by careful planning that keeps assets outside the reach of potential creditors, unwarranted claimants, or inheritance and matrimonial contestants.

The strategies that we adopt embrace a complex series of techniques to afford the highest levels of asset security and can include one or more specific strategies depending on the ultimate objectives. We will advise on and create the correct legal vehicle to secure family wealth and for the transfer of assets from one generation to the next.

We will advise on strategic tax planning and construct circumstance-specific structures to ensure the most tax efficient way of protecting assets. Our attorneys will use their skills to assist and guide clients through the myriad of rules and regulations so that their wealth is fully protected in the interests of current and future beneficiaries.

Summary of our services:

• Provision of objective and pragmatic advice on all aspects of asset protection and inheritance issues.
• Design and creation of CITs and comprehensive asset protection plans to minimize risk and tax liabilities.
• Faithful administration of trusts and distribution of assets, in accordance with instructions.
• Establishment of charitable-contribution vehicles, including family foundations, donor-advised funds and direct gifts. 

Summary of Cyprus International Trust benefits:

• Income, gains and profits from trusts are exempted in Cyprus from income tax, capital gains tax, special contribution or other taxes.
• There is no estate duty or inheritance tax in Cyprus.
• There are no exchange control regulations in Cyprus.
• A CIT can engage in a business activity in Cyprus – conditional upon Cyprus laws imposed on the beneficiaries, not on the trust.
• There are no reporting requirements in Cyprus for CITs.
• Dividends, interest or royalties received by a CIT from overseas are not taxable.
• Capital received into a CIT by a foreigner resident or retired in Cyprus from trusts not resident in Cyprus is not taxable on the trustee.