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.
International Support For Beneficial Ownership Info Exchange Wednesday 27/4/2016More 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.