The Cypriot trust law offers various tax advantages for those who want to open a trust in Cyprus. The law for Cypriot trusts and international trusts resembles the UK model for these types of financial instruments. Investors who want to open a trust in Cyprus have the following options:
- open a trust through a trust deed or a will;
- incorporate a Cypriot company or partnership;
- incorporate a Cypriot subsidiary or branch
- set up an international trust.
Our experts in company formation in Cyprus can give you additional information about how to use companies as investment vehicles. The main tax advantages for opening a trust in Cyprus are:
- good taxation regime and a maximum tax rate of 10% if the beneficiary is a non-resident;
- no capital gains on the disposal of assets of a Cyprus International Trust;
- no withholding tax on dividends paid by a Cypriot trust.
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What are the laws on trust formation in Cyprus?
The Cyprus International Trusts Law of 1992 governs the formation of trusts, together with its reforms of 2012 on the International Trust Law. The recent amendments bring changes concerning the requirements for the settlor of the trust, the requirements for residency when setting up this investment vehicle and those concerning the trustee’s powers. All of these legislative changes are meant to encourage investments in Cyprus, especially those oriented towards business formation or real estate. Our specialists in company formation in Cyprus can assist investors who want to start companies in this country.
How to know a trust in Cyprus is suitable for you?
Various types of investors and individuals can benefit from setting up a trust in Cyprus. For example, it can be useful to those who want to safeguard property or individuals who are minors and cannot hold property in their name. Investors who already own a holding company and want to enhance their tax planning options can consider opening a trust. The same applies to those who want a batter management of their pension or retirement funds.
For detailed information about trust formation in Cyprus you can contact our experts. Our Cypriot company formation specialists will be able to help you in various matters.