Cyprus Trust Set Up

A Cyprus trust is formally known as a Cyprus International Trust and can be set up by corporate entities or individuals seeking high levels of asset protection and effective tax planning. Cyprus offers a favorable tax climate and allows for the settlor and beneficiary/ies of a Cyprus International Trust to enjoy a number of additional advantages.

To find out how DeltaQuest can assist with your Cyprus International Trust set up please Contact Us.

To proceed with your trust formation, complete our online Trust Application Form.

Cyprus Trust Services provided by DeltaQuest

DeltaQuest consultants are experts in trust formation in Cyprus. We provide valuable advice and guidance on the most appropriate type of trust structure to adopt and assist with the administration of relevant documentation. In addition, we will offer legal guidance on how to comply with the applicable Cyprus trust laws, and inform settlors on the types of permitted property a Cyprus International Trust can hold. DeltaQuest can provide trustee services, ensuring the management and administration of your trust is performed in a reliable, honest, confidential and professional manner.

Requirements of a Cyprus International Trust

In order to establish a Cyprus International Trust it is necessary to satisfy all prerequisites and comply with necessary legislation. The most important requirements to meet when forming a trust in Cyprus include;

- The settlor (person who sets up the trust) cannot be a Cyprus permanent resident

- A minimum of one nominated trustee is required to be a Cyprus resident

- Trust beneficiaries should not be residents in Cyprus

- Trust property cannot include immovable property in Cyprus

Provided the above mentioned factors are complied with, a Cyprus International Trust formation can be achieved.

Applicable Trust Law in Cyprus

When establishing a Cyprus International Trust is it important to be aware of the relevant laws to comply with. Cyprus Trust Law is known as The International Trusts Law (Law No. 69/1992) and is advantageously modeled on English Trust Law, rendering it easier to understand for foreign nationals.

It is advised that all potential and existing trust settlors are aware of the protection, rights and obligations imposed on them under The International Trusts Law to ensure they remain fully compliant with regulatory standards and meet all necessary requirements.

How to establish a Cyprus International Trust

It is essential that all parties are present to create a Cyprus International Trust, namely: the settlor, trustee, beneficiaries and protector. The trustee is the nominated individual charged with the administration and management of the trust’s assets in accordance with the trust deed as drafted by the settlor. It is important to choose a trustee who will act in the best interests of the beneficiaries and whom will show due diligence.

The assets are ‘settled’ into the trust structure by the settlor and subsequently managed by the trustee, under the control of the protector (if desired). The nominated beneficiaries will receive the assets in accordance to the trust deed and under the discretion of the trustee.

Advantages of setting up a Cyprus International Trust

A Cyprus International Trust is an effective vehicle to achieve favorable tax planning and asset protection solutions for both individuals and companies across the globe. In line with asset protection and tax planning, Cyprus International Trusts offer a broad range of benefits including;

- Enhanced protection against creditor and third party claims

- Avoidance of forced heirship rules and inheritance tax

- High levels of confidentiality and privacy

- Flexible trust law

- Tax exemption

- No exchange control regulations

- No estate duty

A Cyprus International Trust is a valuable business tool for companies wanting to secure their assets, and for individuals wishing to safeguard their estate for their future beneficiaries.

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