Trusts
A trust may be defined as a settlement whereby the settlor transfers the property to the trustee upon the terms set forth by the trust agreement or the trust settlement. The property will be transferred to the trustee for the purpose of its management by the trustee for the benefit of the beneficiary or beneficiaries. The Trustee under the laws of equity will hold the rights of the property for the benefit of the beneficiary. The trustee will always owe fiduciary duties to the beneficiaries and is personally liable towards them.
Our team of experts with excessive experience can assist you in forming and providing trustee services to Cyprus International Trusts.
Through the creation of a Cyprus International Trust, it is possible to minimise the settlor’s taxation on income or wealth by transferring property anywhere in the world.
In addition, confidentiality is accomplished, as there is no requirement to register or publish the financial results of an International Trust. The Deed of Trust is private and is only known to the parties affected.
Benefits for establishing a Cyprus International Trust
- There is no taxation in Cyprus on the beneficiaries of the Trusts;
- Any Distributions made to the beneficiaries are not subject to tax in Cyprus;
- Assets can be added to the trust at any time without limitations and Trust Assets are kept separate from the settlor’s personally owned assets,
- No Capital Gains tax is paid by the International Trusts,
- The trust can be a shareholder in a Cyprus Company or any other foreign company;
In the situation where the Cyprus Trust is a shareholder of a Cyprus company then the Trust will have the Tax Benefits of a Cyprus Company.
We can assist you with the formation of the following Trusts:
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The Trustees have the discretion to deal with the trust property as they think proper for the benefit of the beneficiaries.
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The Trustees are obliged to follow the terms of the Trust Deed and do not have any discretion when distributing assets to the Beneficiaries.
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The Trustee is commonly a company which has the power to trade. Trading Trust has the advantage that any parties are not aware of the existence of the Trust and all the documentation are in the name of the Trustee company.
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Purpose Trust is where all the income and capital are accumulated and distributed to the children when they attain a certain age or a future event takes place which is stated in theTrust Deed.