International Trusts

Cyprus International Trusts are governed by the International Trusts Law of 1992 which regulates the establishment and administration of International Trusts.

The benefits of the International Trusts are among others the following:

- All income whether trading or otherwise of an International Trust, is not taxable in Cyprus.

- Dividends, interest or other income received by an International Trust from a Cyprus Company are neither taxable nor subject to withholding tax.

- Gains on the disposal of the assets of an International Trust are not subject to capital gains tax in Cyprus.

- Through the use of a Cyprus International Trust, an individual can ensure that minors, mentally handicapped persons or persons that cannot be trusted with the management of the individual’s estate are well provided for, even after the individual’s death.

- A Cyprus International Trust can be used to arrange for a person to inherit, where due to the legislation of the individual’s country, would otherwise be excluded from inheritance.

- An individual who wishes to divest himself of personal assets for various reasons can achieve that by transferring them to a Cyprus International Trust.

- An individual who wishes to keep the ownership of a company anonymous and confidential, can do this by setting up a Discretionary Cyprus International Trust

- An individual who has or may have income arising overseas which he does not wish to remit to his country of residence, can arrange for such income to be directed to the Trustees of a Cyprus Settlement to be held on Discretionary Trusts in accordance with his wishes.

- An individual with assets outside his country of residence, which country may in future extend its exchange control restrictions to include remittance of overseas funds, may wish to retain the flexibility of overseas funds by transferring them to a Discretionary Trust.

© Copyright Worldserve Business Services Ltd 2012