Trusts & Asset Protection
We advise on the creation and administration of trusts in Cyprus. In this area, our clients include individuals wishing to set up trusts, beneficiaries and trustees. Our services include advising on the choice of trustees/protectors, the tax position of trusts and the exercise of trust powers and indemnities, review, analysis and development of estate plans for high-net-worth individuals, and the preparation of documents necessary to implement such plans.
We advise wealthy individuals and their families how to structure their global wealth in order to protect it from antagonistic third parties, personal or family issues and preserve confidentiality for present and future generations. The team advises on the use of a variety of entities including onshore trusts, companies, foundations and private trust companies throughout the world.
We advise our clients on investment projects, particularly in setting up investment vehicles and structures in various jurisdictions. We assist clients with any private law and regulatory issues they might face in the course of an investment project such as taxation, compliance, bank relationship and finance, company law, contracts and real estate regulations. The extensive expertise of our team in various spheres of legal practice is put together to ensure that the clients’ intentions are diligently implemented and their interests are protected to the fullest extent. The firm advises businesses and commercial enterprises on all general corporate matters and companies’ administration.
Cyprus trust law is essentially based on the English system. Trusts are mainly regulated by the Trustee Law, Chapter 193, enacted in 1955 and based on the English 1925 Trustees Act. This is supplemented by the English doctrine of equity and English case law prior to 1960. In 1992, Cyprus enacted the International Trusts Law. On 23 March 2012, the International Trust (Amending) Law of 2012 came into effect reforming the International Trusts Law of 1992. The new Law builds on the existing very attractive Cyprus International Trusts Law and has introduced many new competitive features.
The following benefits relate to Cyprus International Trusts:
Income, gains and profits are exempted from income tax, capital gains tax, special
contribution or any other taxes in Cyprus.
No estate duty or inheritance tax in Cyprus.
No exchange control regulations.
An International Trust may carry in business in Cyprus subject of course to the laws of the country which are imposed on the beneficiaries and not on the trust itself
There are no reporting requirements in Cyprus for the International Trusts.
Dividends, interest or royalties received by an International Trust from abroad are not taxable.
Trust capital received in Cyprus by a foreigner resident or retired in Cyprus from trusts not resident in Cyprus is not taxable on the trustee.
Our services in respect to Trusts include:
Formation and administration of Cyprus International trusts or other off-shore trusts
Provision of corporate trustees and other officers
Review, analysis, development and implementation of succession plans for owners of closely held businesses
Preparation and implementation of complex asset protection plans to minimize risks and transfer wealth and minimize taxes
Providing advice on family asset protection and inheritance issues
Making distributions to the beneficiaries
Formation of charitable-contribution vehicles, including family foundations, donor-advised funds and direct gifts
Additionally, our litigators have litigated claims involving:
Breach of fiduciary duty for or against fiduciaries and their agents
Removal of fiduciaries
Will and trust interpretation, construction and reformation
Lack of mental capacity
Fraud, duress and undue influence
Spousal rights and elective share proceedings
Determination of, and challenges to, heirship
Actions to recover assets