All over the world, Cyprus is known as a reputable finance center. It is a tax haven that is given much importance by many investors and businessmen because it offers low tax regime, double tax treaties, and other tax benefits. It is also an excellent choice when it comes to international tax planning strategies. With it, corporations will be able to reduce their tax in a legal manner. Indeed, Cyprus is a country that has numerous things to offer to the corporate and business world. Cyprus trusts are among the many things that the country is able to provide to entrepreneurs.
The International Trusts Law of 1992 governs Cyprus trusts. This means that the establishment and management of trusts are regulated by this law. Also, according to this law, a Cyprus International Trust possesses certain characteristics. First of all, the settlor is not a Cyprus permanent resident. During the whole course of the trust, at least one of the trustees should be a Cyprus permanent resident. The beneficiary of the trust should not be a Cyprus permanent resident, except for charitable institutions. Finally, any immovable property or structure located in Cyprus cannot be included in the trust property.
There are numerous trust advantages. Cyprus International Trusts give way to significant tax advantages and allow interested people to make important tax planning strategies. In Cyprus, the income that either comes from trading or from an International Trust is not subject to any tax. When it comes to interest, dividends, and other income that an International Trust receives from a Cyprus company, they are also not subject to withholding tax. In terms of capital gains that arise from disposing assets of a Cyprus Trust, there is also no tax involved with it. It is also important to note that a trust that is especially made for the purposes of estate duty planning is not subject to any estate duty.
A Cyprus International Trust also brings forth confidentiality. The trustee or anyone else including individuals from the government and Central Bank of Cyprus officials cannot reveal any information or detail about an international trust to anyone who has no right to know about it. Also, International Trusts are exempted to any registration and there is no obligation to forward financial statements or tax declarations. This ensures that confidentiality is never overlooked.
It is favorable to have a Cyprus International Trust because it promotes charities and causes. With it, an individual gets to provide for a charitable institution, help causes that have religious or artistic nature, and create a program or foundation that supports valuable projects.
Cyprus trusts can also be transferred to another jurisdiction. At the same time, a trust that was formed in another jurisdiction can also be easily transferred to Cyprus if the owner wants to do so. With this facility, the settlor will be able to relocate the trust in the country and experience various benefits.
With a Cyprus International Trust, a person can make certain that people that are still not in the legal age, individuals with mental problems, and those who are incapable of being trusted with the administration of a person’s estate will surely be provided for. This will still go on even after the death of the person. Also, an individual can work on arranging to be inherited by people, who may be excluded from the inheritance because of the legislation of the person’s country.
When it comes to the bank deposits that may either be local or international, they are not subject to exchange control. There are also attractive management services in Cyprus. There are many reputable and decent international fund management companies in the country. In addition, there are many legal and accounting professions that will surely be able to offer advice and proficient management services necessary for the appropriate operation of an international trust.
Those are the excellent benefits that a Cyprus International Trust brings about. It is very useful for many different purposes. Certainly, people who want to invest, protect their assets, or for any other reasons will be use the Cyprus International Trust to his advantage.
theodion
