We recommend Cyprus trust as one of the best tools for asset protection, wealth management, investments, succession and tax planning
A trust is a legal arrangement whereby the owner of certain assets or property (the “Settlor”) transfers such to a legal or natural person (the “Trustee”) to manage such assets for the benefit of another person or group of people (the “Beneficiary(ies)”).
The Settlor can transfer to the Trustee and the Trust any form of assets: from cash to operating corporations.
With the creation of a Trust, you may also wish to appoint a protector of the trust (“Protector”) to ensure that the wishes of the Settlor and the interests of the Beneficiary(ies) are both considered and protected.
The main two types of Trusts which are used in Cyprus are ‘local’ or ‘domestic’ Trusts and the Cyprus International Trusts (“CIT’s”). For a local Trust, the Settlor should be a Cyprus resident. For a CIT, neither the Settlor nor any of the Beneficiary (save for a charitable institution) should be a resident of Cyprus during the calendar year which precedes the year of creation of the Trust.
The Cyprus trust (“Trust“) derives from the long established English law principles of equity and trusts and it is by far one of the world’s most attractive legal frameworks for asset protection. Cyprus courts also largely adopt English Common Law and equity principles which offer stability, transparency and consistency to its legal system.
The Trust solves many problems: from succession planning to asset protection and effective asset management with a high degree of confidentiality.
The Benefits of a Trust
1. Asset protection
- The functioning of a CIT will be determined by the laws of Cyprus without reference to the laws of any other jurisdiction;
- Neither a CIT nor any Trust Assets will be invalidated by foreign inheritance or succession laws even when the foreign jurisdiction does not recognise the concept of trusts;
- A CIT may not be set aside by the Settlor’s creditors on liquidation or bankruptcy unless it is proved that the trust was created defraud the Settlor creditors.
- There is no limit to the duration of time that a CIT may continue to be valid or enforceable.
3. Power to change the applicable law
- CIT gives an opportunity to change the governing law to or from Cyprus law which offers great flexibility to the Settlor, especially in unforeseen circumstances.
- There is no tax payable on the dividend income and gains of the CIT, provided that the Beneficiaries of the CIT are not Cyprus residents, and the generated income of the trust is acquired from sources outside Cyprus;
- There is no inheritance or wealth tax in Cyprus.
Main Partner Trust experts will prepare a Trust Deed, provide management services to the trust in our capacity as Trustee or Protector.
We will help you to create a trust which fully meets your needs.
The centuries-tested effective tool for asset protection, tax base erosion and succession planning
Meeting the needs related to management, protection and structure of your wealth through the trust
A trustee will follow the will of the founder and protect the interests of the beneficiary of the trust