Cyprus is a popular jurisdiction for international trusts. The relevant law has the following criteria for a trust to qualify as a Cyprus International Trust:
• The settlor should not be a permanent resident in Cyprus.
• At least one trustee should be a permanent resident in Cyprus.
• No beneficiaries are permanent residents in Cyprus.
• The trust does not include any immovable property in Cyprus.
Cyprus International Trusts enjoy a number of advantages such as:
• Income received, including trading income, dividends, interest and capital gains, is not taxed in Cyprus.
• The beneficiary of a Cyprus International Trust can retire in Cyprus and still be exempt from tax if all the property settled and the income earned is from abroad.
• No estate duty
• Asset protection
• Estate management in order to ensure that any child or any other person is well provided for.
• Inheritance planning in order to avoid inheritance legislation in certain countries
• Anonymity and confidentiality