When it comes to safeguarding your hard-earned wealth and assets, the Cyprus International Trust stands out as a true heavyweight in the ring.
This versatile financial instrument has carved out a reputation as one of the most robust and flexible trust structures in Europe, offering an impressive array of benefits that make it a go-to choice for high-net-worth individuals (HNWIs), families, and businesses looking to optimize their global asset management.
The flexibility of the Cypriot Trust solution
Unlike many other trust jurisdictions with rigid, one-size-fits-all frameworks, the Cyprus International Trust thrives on its adaptability. At its core, a trust is a fiduciary relationship where a trustee holds and manages property on behalf of a beneficiary, as directed by the settlor (also known as the grantor or even trustor). In Cyprus, this dynamic trio – settlor, trustee, and beneficiary – form the foundation of a powerful wealth preservation and optimization tool.
The amendments to the Cyprus International Trusts Law in 2012, and its Trustee Law have established Cyprus as a top-tier trust jurisdiction. In 2017, Cyprus also ratified the Hague Trust Convention which sought to bolster signatory states’ credibility and harmonize any discrepancies in how trust and non-trust states treat and recognize trust structures. Most significantly the convention aimed to clarify and designate how trusts which have a cross-border element should be treated. As the world becomes interconnected and mobility rockets, a growing number of trusts will be considered to have cross-border aspects.
What are the Cyprus International Trust’s main advantages?
The trust operates exclusively under Cypriot law, ensuring that foreign laws don’t come into play and undermine the robust asset protection it offers. This jurisdictional clarity is a game-changer, as it eliminates the potential for legal ambiguity or conflicts that can plague structures relying on multiple governing bodies. Isle of Man trusts also offer protections that ensure foreign courts have no claims on the trust’s validity or over any of its assets or parties.
The Cyprus International Trust can exist in perpetuity, meaning it has the ability to continue beyond the life span of the settlor and continue providing protection for future generations.
Settlors can also ensure that the trust is drafted in such a way that they retain specific powers, including the ability to revoke or amend the trust deed, remove trustees or even provide some form of direction for the trustee. None the less, in comparison to other trust jurisdictions, Cyprus trustees are free from strict limitations on how they execute their role.
Read more: 4 Reasons to set up an offshore trust
Unlike other trusts that impose strict trustee limitations, the Cyprus International Trust empowers the trustees to exercise their discretion and actively manage the trust assets, with the goal of enhancing the overall value. This nimble and proactive approach can pay dividends in the long run.
Confidentiality is also a key component of the Cyprus International Trust. The public Registers of Trusts is accessible by regulatory bodies such as the Cyprus Bar Association, Cyprus Securities and Exchange Commission, and Institute of Certified Public Accountants. Access is tightly help requiring proof of “legitimate interest,” to be accessed by the general public.
Why establish a trust in Cyprus?
As a member of the European Union and Eurozone, Cyprus itself boasts an attractive tax regime, and stable legal system firmly rooted in English law, providing a level of familiarity and reliability that many HNWIs and investors find reassuring. Settlors also have the option of relocating to Cyprus, a country that offers several investment migration solutions as well as their 60-Day Rule. A non-domicile scheme of sorts that grants wealth individuals extensive tax benefits.
Whether you’re looking to safeguard your personal assets, optimize your family’s wealth, or restructure your business holdings – the Cyprus International Trust offers a breadth of benefits. With its unparalleled flexibility, robust legal foundation, and wealth of unique benefits, this trust structure truly is a powerful ally for affluent families that want to preserve their capital.
