Cyprus International Trust – 2022- Wealth Protection-Zero Taxes!
Updated 25 May 2022
- ZERO TAXES: A Cyprus International Trust (C.I.T.) in 2022 is a powerful tool for cross-border tax optimization schemes. A C.I.T. can invest in any kind of assets such as real estate, securities, bonds, gold, Forex etc. and it will pay 0% Tax in Cyprus, on the profits of all or any of these revenues provided that they are made outside of Cyprus.
- FULL SECRECY: A Cyprus International Trust in 2022 offers full secrecy to the Settlor as no one can force the Trustee to disclose any details of the Trust Property, the Beneficiaries, The Settlor, or any of the terms and provisions of the Trust. That is so even as against any order of any foreign court. Only a Cyprus Court has the power to order such disclosures and only on the application of an interested party, such as a Beneficiary or the Protector.
- ABSOLUTE PROTECTION OF ASSETS: A Cyprus International Trust offers absolute protection to the Trust Property by raising a firewall of protection against any claims by third parties against any Trust Property, even if that claim is represented by a valid Court Judgement of a foreign Court.
- VERSATILE TOOL: It is a versatile instrument which allows for fluent and practicable structuring without creating an iron restraint on the investor (The Settlor). On the contrary it allows manipulation and resettlement of goals and targets. It allows the acquisition of real estate in any country, the ownership of shares, bonds or other securities, the holding of shares in any company, the possession of gold, cash, or other movable property and so on. All assets of the Trust can be sold, rented, or developed!
- LEGAL ENTITY NOT BEING A COMPANY: It is basically a legal entity without being a “company”, so the Cyprus Government does not have to report the Trust’s economic activity or Banking operations on the strength of the Automatic Exchange of Information treaty, signed by over 135 countries. A C.I.T. can act as a holding vessel for the shares of any company registered in Cyprus or abroad and to accept the profits (dividends) of that company at 0% tax!
Cyprus International Trust – 2022
A CIT is created on the strength and provisions of the Cyprus International Trust Law, Law 69 (1)/1992 article 2, which provides:
By Cyprus International Trust it is meant a trust whose:
- Settlor, is not Tax Resident in Cyprus the year before the year in which the Trust is created.
- The Beneficiary is not Tax Resident in Cyprus the year before the year in which the Trust is created.
- The Trustee during the existence of a Cyprus International Trust is a Cyprus Tax Resident person.
- The Protector is optional. Not recommended as he may cause friction and unnecessary costs.
Your Presence is Not Required
A Cyprus International Trust can be created and registered without your presence in Cyprus. It will be a custom made Trust, which will encompass all the terms, conditions, agreements, promises and wishes of the you as the Settlor ot the Trust. It can be operated from Cyprus by the Trustee, for purposes of investments, opening a bank account for it, buying or selling trust property etc. without your presence. The Trustee can execute all the above through written instructions from you, by email, fax, letter or even by a telephone call.
Firewall for All Assets of the Trust
One of the main and most important advantages of a C.I.T. is the protection of the assets assigned to the Trust against any claims. Life is full of surprises good and bad. If you at some stage of your life have the bad luck to find yourself in economic troubles, the property set aside for your family and even for yourself cannot be touched or confiscated or blocked or frozen by creditors even through a foreign or local court decision or order. Article 3 (2) of Law 69 (1)/1992 also provides a full firewall of protection of the assets assigned to a C.I.T. as follows: Art 3 (2): Contrary to any Laws of Cyprus or any other country, no claim whatsoever can be raised as against any Assets of the Trust in case of bankruptcy of the Settlor or any court actions against the Settlor by any creditors.
Termination or Collapse of a Cyprus International Trust
A Cyprus International Trust can be terminated by the Settlor at any time without any penalties or other legal problems provided 3rd parties are covered. Art. 5 (1) of Law 69 (1)/1992.
Reasonable Setting Up Fees
Another advantage of the Cyprus International Trust is that it can be set up for a very reasonable fee and it can be operated and maintained also for very reasonable Trustee salary, legal fees and other expenses. Please ask for our quote for setting up and operating a Cyprus International Trust.
Frequently Asked Questions:
If I set up a C.I.T. will I be paying taxes in Cyprus personally?
No you will not paying any taxes personally in Cyprus just because you set up a Trust in Cyprus. You don`t even have to register with the Tax Office in Cyprus.
Will my Trust in Cyprus entitle me to a Long Stay Visa in Cyprus?
It will count heavily when your application for a long stay visa in Cyprus, is being examined by the Migration Department. Ask for more details.
Can I increase the Trust Fund, once the Trust is set up and executed?
If there is a provision in the Trust Deed, when it is drafted for this, then yes, the Trust Fund can be increased and new assets added to the Trust Property.
Can I add new Beneficiaries to the Trust if I want to?
Again, if there is provision in the Trust to that effect you can add new Beneficiaries.
If you need any more technical information or legal advice about the setting up or operation or tax repercussions of a C.I.T., you or your Lawyers are welcome to contact me and I will be very happy to discuss everything with you.