The revamped Cyprus International Trust (CIT), provides for the highest possible degree of asset protection internationally, extensive tax benefits and strong confidentiality capabilities.
A CIT is a legal arrangement created by the Settlor who transfers property/assets to a legal or physical person, called the Trustee, who holds the property for the benefit of the beneficiary/ beneficiaries in accordance with the terms of the "Trust Deed".
CORE BENEFITS OF A CIT
- No Tax on non-Cyprus income and profits of a CIT;
- Beneficiaries may be taxable in their country of residence, only upon actual distributions;
- No capital gains tax on sale of titles;
- No inheritance or wealth taxes applicable;
- Low stamp duty;
- Possible disapplication of CFC Rules.
- Cyprus courts have exclusive jurisdiction as to the validity of CIT;
- The provisions of CIT Law have express Superiority of over any other law, or treaty applicable in Cyprus;
- No claim can be filed in relation to the assets of the Trust in the case of bankruptcy or liquidation of the Settlor/ Beneficiary or in cases of institution of legal proceedings against the Settlor/ Beneficiary by his creditors;
- Foreign or local succession laws do not apply - Avoidance of forced heirship rules and certainty of succession: Any distribution of Trust property shall be made in accordance to the terms of the Trust deed in the event of death of Settlor or Beneficiary.
- Possibility to grant extended powers to Settlors;
- Ability on changing the jurisdiction of the Trust;
- No statutory limitations on mode of operation, objects, activities or mode of distribution of the Trust;
- Flexibility on investments and perpetual accumulation of income;
- May be fixed or discretionary.
- High protection-The legal time limit to challenge the Trust is two years;
- Quick to set-up: usually within 2 working days; " No public registries for Trusts;
- No filing requirements;
- Strict confidentiality: disclosure of any details relating to a CIT is only allowed after a relevant court order
EXAMPLES OF USAGE OF A TRUST
- Provision of Trustee, Protector, Advisor;
- Advising, Drafting, Structuring & Management of Trusts;
- Legal representation in Court Proceedings;
- Advising on Tax & Compliance matters.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.