02 JUN, 2023
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2nd October 2023
A Cyprus International trust is a trust that can very importantly have 100% foreign ownership and is one that allows asset owners (settlors) to transfer their holdings to a trustee (which can either be a legal entity or a physical person) that will manage and hold these assets for the benefit of the current asset owners’ (settlors’) chosen beneficiaries. The assets that can be held within a Cyprus International Trust (CIT) can include but are not limited to assets such as cash, real estate holdings, shares and corporate or government bonds. CITs are governed by the International Trust Laws 1992 to 2013 (The Law).
Such trusts can prove to be an extremely useful tool for individuals with high net worth who look to secure the planning of the succession of their assets either to close relatives of the next generation or any other beneficiary they choose to transfer their assets to.
According to Article 2 of the Law, for the settlor to be eligible for the creation of a CIT he/she must not have been a resident of Cyprus the year prior the establishment of the trust. Another necessary requirement for the creation of the CIT is that a minimum of one of the trustees has to be a resident of Cyprus at the time when the trust is established and throughout its period of validity. Finally, unless the beneficiary is chosen to be a non-profit charitable organisation, all chosen beneficiaries similarly must not have been residents of Cyprus the year prior the trust’s establishment. It is worth noting that both settlors and beneficiaries can either be natural persons or legal persons.
Aside of the advantage of full foreign ownership, Cyprus International Trusts carry a variety of benefits both for settlors and beneficiaries. These include:
Cyprus International Trusts present countless benefits to potential candidates that look to reserve their assets and ensure their safe and cost-effective transition to their chosen beneficiaries or successors. Even more enticing is that not only are CITs easy and quick to set up but also the fact that they provide settlors the flexibility to adjust the terms, duration and even location of their CIT at any time and according to their own preference.
This article is provided for information purposes only and it does not constitute legal or any other professional advice.
 International Trust Law 1992 (Law No. 69(I)/1992); International Trusts (Amending) Law of 2012 (Law No. 20(I)/2012); International Trusts (Amending) Law of 2013 (Law No. 98(I)/2013).
 International Trusts (Amending) Law of 2012 (Law No. 20(I)/2012), Section 2.
 International Trusts (Amending) Law of 2012 (Law No. 20(I)/2012), Section 4(A).
 International Trusts (Amending) Law of 2012 (Law No. 20(I)/2012), section 4A(3).
 International Trusts (Amending) Law of 2012 (Law No. 20(I)/2012), sections 3(2), 3(3).
 Knight v Knight (1840) 3 Beav 148.