Trust Law in Cyprus
Trust Law in CyprusUpdated on Thursday 20th October 2016
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A trust in Cyprus can be registered by foreign investors following specific regulations, which are provided under the Trustee Law. A trust is a business form in which a party, generally known as a trustor, provides the right to hold various types of assets to another party, referred to as trustee. Further on, such assets will be managed in the best interest of a third party. In order to register a Cypriot trust, investors are advised to receive legal assistance on the procedure from our law firm in Cyprus, as there are several ways in which a trust can be established in this country.
Cypriot law on trusts
In order to register a company as a trust in Cyprus, the investors have several legal options, as prescribed by the Cyprus Trust Law. It is important to know that foreign investments in this sense are welcomed on the local market, due to the fact that Cyprus enforced in 1992 the International Trusts Law.
As a general rule, a trust in Cyprus is incorporated by high net worth individuals who want to protect and reinvest their assets.The main reason to register a trust in a foreign country refers to the level of taxation in that respective state, which is much favourable than in the home country.
Our attorneys in Cyprus can offer assistance on the legal procedure to register this business form and they can also provide in-depth information on the taxation system applicable to such entities.
Incorporate a Cypriot trust
As mentioned above, the Cypriot law offers numerous ways to establish a company registered as a trust. More specifically, four options, which are presented below:
• a foreigner can register a trust through a trust deed or a will;
• investors can also set up an international company through which the assets and the company’s securities are relocated in Cyprus;
• register a subsidiary or a branch, though which the movable property is relocated in a Cypriot trust;
• register an international Cypriot trust.
In order to start a trust in Cyprus, the businessmen are required to offer the proof on the intention of registration in Cyprus. Furthermore, the assets which will represent the main object of the trust must be clearly stated.
Persons who are interested in receiving more details on the trust law in Cyprus may contact our Cypriot law firm.