Trusts

A Trust is not a legal personality but rather an institution. It is the legal relationship

- created by the owner of the property (the Settlor)

- whereby a person or a company holds the property and manages it (the Trustee)

- for the benefit of another (the Beneficiary)

- and optionally it may have a person or a company supervising the Trust (the Protector)

The Settlor can reserve powers in relation to the Trust eg to amend the Trust or act as the Protector but this is not adviseable for tax reasons.

Trusts are used for

- Asset protection as they do not belong to the Settlor or the Beneficiaries

- Enabling property to be held for persons who cannot or should not hold it directly such as minors etc

- Finance transactions eg loans for a specific purpose, securitizations

- Inheritance purposes

- Holding investments and shares of companies

As from 2012 Cyprus has introduced a new very attractive and favourable International Trust legislation which offers the following benefits:

- no formal registration is required and no requirements for annual or general meetings, accounts, annual reports, etc

- no income tax, capital gains tax and estate duty. It is taxed on the basis of the Beneficiary tax residency. If the Beneficiary is non tax resident in Cyprus the Trust is taxed only on profits from sources within Cyprus.

- complete confidentiality is imposed on the trustees

Our Firm can assist you in:

- Preparation, drafting and advising of the Trust Deed

- Acting as Trustee of a new or existing Trust