This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.  
 

Offshore Trusts Report: Cyprus

Legal Framework and Formation Rules and Fees

Cyprus trust law began with the Cyprus Trustee Law Chapter 193, based on the English Trustee Act 1925, but the island's trust regime was brought into line with normal international practice with the International Trusts Law 69(I) of 1992.

Local Trusts are governed by English common law and the original Trustee Law. The settlor and beneficiaries are normally residents of Cyprus, and the trust and its property are subject to exchange controls.

Offshore Trusts are equally outside the International Trusts legislation, and are the same as Local Trusts except that their beneficiaries must be non-resident and all the trust's activities must be outside Cyprus.

International Trusts are the normal form of Cyprus Trust used by foreign settlors. International Trusts have the following key characteristics:

  • the settlor must be non-resident

  • the beneficiaries must also be non-resident (except for local charities)

  • one of the Trustees must be Cypriot (individual or corporate)

  • the trust period may be up to 100 years (longer for charitable trusts)

  • confidentiality is protected in the law, and foreign judgements are specifically non-recognized

  • there is no registration requirement

  • trust documents are in English

  • trust assets may not include immovable property in Cyprus

  • creditors have to prove intent and must claim within two years

  • there are no registration or reporting requirements for trusts established in Cyprus not is it required to identify in the trust deed the names of the beneficiaries of the Trust.

International Trusts Law prohibits any of the trustees or any other persons including government officials and officers of the Central Bank from disclosing any information regarding the trust. Only a court may by order allow the disclosure of information where the disclosure is of paramount importance to the outcome of the particular civil or criminal proceedings.

   

The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

New Zealand

New Zealand: Legal Framework and Formation Rules and Fees
New Zealand: Review of the Law of Trusts
New Zealand: Taxation of Trusts

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees

 


Cyprus News

International Support For Beneficial Ownership Info Exchange Wednesday 27/4/2016 More than 20 jurisdictions have signed up to a pilot project to exchange data held on beneficial ownership registers and registers of trusts, according to UK Chancellor George Osborne.

Barclays Warns Expats Of Possible Account Closures Thursday 23/7/2015 Barclays Bank has disclosed that it may close expat's accounts in Cyprus if they do not maintain a minimum balance of GPB100,000 (USD156,000).

Cypriot Company Register Shrinks By Ten Percent Tuesday 13/1/2015 Cyprus removed almost 30,000 companies from its company registry in 2014, new figures show.

Harney Opens Singapore Office Friday 30/5/2014 Harneys, an international offshore law firm, has announced the opening of a Singapore office, adding to its offices in the British Virgin Islands, the Cayman Islands, Uruguay, the United Kingdom, Cyprus and Hong Kong.

Cyprus QROPS Struck From HMRC Approved List Monday 20/8/2012 The UK tax authority, HM Revenue and Customs has removed all Qualifying Recognised Overseas Pension Schemes based in Cyprus from its approved schemes list, effectively blocking the territory from being able to admit new pension transfers on a tax-free basis from would-be UK expatriates.

Cyprus Treaty Provides New Capital Gains Rules Friday 15/10/2010 The protocol amending the 1998 tax treaty between Russia and Cyprus includes special provisions related to real estate investment.

Cyprus Initials Revised DTA With Germany Wednesday 2/9/2009 The German Ministry of Finance announced on September 1 that it had initialled the text of a revised double taxation agreement with Cyprus to allow for the exchange of information on tax matters between the two countries’ tax authorities, in accordance with Article 26 of the OECD model convention.

IMF Concludes Article IV Consultation With Cyprus Thursday 20/8/2009 On August 5, the Executive Board of the International Monetary Fund concluded its 2009 Article IV consultation with Cyprus.

India Plans To Revise Double Tax Treaties Thursday 13/8/2009 India is revising its double taxation avoidance treaties, especially those which were concluded prior to 2004. Its objective is to renegotiate anti-abuse provisions.

IMF Issues Cyprus Mission Concluding Statement Monday 6/7/2009 The IMF has issued a Mission Concluding Statement in respect of its Article IV Consultation with Cyprus. The relatively benign impact of the crisis is due, in part, to conservative financial sector practices and strict supervision, and the elimination of exchange rate risk following euro adoption, according to the IMF.