A Cyprus International Trust is used for Asset protection, Estate planning and as a vehicle of International Tax planning and business.
A Trust qualifies as a Cyprus International Trust where:
- The settlor is not a permanent resident in Cyprus
- At least one trustee is a permanent resident in Cyprus
- No beneficiaries are permanent residents in Cyprus, and
- The Trust property does not include any immovable property in Cyprus
The Fiscal and other Advantages of a Cyprus International Trust:
- All income whether trading or otherwise of an International Trust, is not taxable in Cyprus
- Dividends, interest or other income received by a Trust from a Cyprus International Business Company are also neither taxable nor subject to withholding Tax
- Gains on the disposal of the assets of an International Trust are not subject to Capital Gains Tax in Cyprus
- Use of a large number of double tax treaties
- Favourable legal system
- No exchange control
- International Trusts Law prohibits any of the trustees or any other person including government officials and officers from disclosing any information regarding the Trust unless there is a disclosure order by a Cyprus court in cases of suspicion of criminal activities
- A n alien who creates an International Trust in Cyprus and retires in Cyprus is still exempt from Tax if all the property settled and the income earned is abroad, even if he is a beneficiary