After 20 years with the world changing fast, the then modern and state of the art international trust regime with excellent tax mitigation and protection features, had fallen behind with numerous restrictions and limitations contained in the original law no longer being necessary. The amending law makes a number of changes to the original law, many of which are relatively technical.
Benefits from the use of a Cyprus International Trust
- no formal registration is required
- no taxation on any income accrued out of Cyprus or capital gains of the trust
- no estate duty is payable
- complete confidentiality is imposed on the trustees on the disclosure of financial or other information
- the settlor may through a Cyprus international business company controlled by him, become a trustee or its sole trustee thus effectively managing the trust
The formation of the trust is made by the signing of a Trust Deed by the trustees in which the settlor and the beneficiaries are named. The amending law ensures that settlors and beneficiaries enjoy the highest possible degree of protection, due to the clarity of the new provisions and the removal of any ambiguities. The amendments give Cyprus the most updated and favourable trust regime and reinforce the position of Cyprus as an ideal trust jurisdiction within the EU.