Entrepreneurs, HNWIs, c-suite executives and family offices must set an overall sustainable wealth preservation and asset protection strategy to combat the effects of the virus. Cyprus provides a competitive edge to a legal or natural person that wants to create an efficient and effective vehicle by transferring property to another for various purposes, including family succession and heirship planning, estate and asset protection, commercial transactions, employee incentive schemes, investment and charitable purposes.
Cyprus International Trust
Cyprus International Trusts are based on principles of equity and, in particular, that ownership of property may be separated into legal and beneficial ownership. Hence, a Trustee undertakes the role of the registered owner of the relevant property. Whereas, the beneficial interest of such property lies with a specified person(s) as Beneficiary(ies), who may also be the Settlor. Furthermore, a Protector of the trust may be appointed to whom authority is granted subject to the trust instrument, including to advise the Trustee as regards exercise of its authorities.
Cyprus Trust Framework
The Cyprus trust statutory framework consists of the Trustees Law CAP. 193 which is mainly based on the English Trustees Act of 1925 and the International Trusts Law of 1992, as amended. The Law defines an international trust as a trust of which (a) the Settlor is not a resident of Cyprus during the year preceding the year of creation of the trust; (b) one of the trustees throughout the duration of the trust is a resident of Cyprus; and (c) none of the beneficiaries, subject to certain exceptions, is a resident of Cyprus during the year preceding the year of creation of the trust.
Moreover, to establish a valid Cyprus trust the three certainties of (i) intention; (ii) subject matter; and (iii) objects must be fulfilled. The applicable procedure to create a Cyprus trust is relatively swift and straightforward, subject always to the particular circumstances of each case.
Cyprus Legal System
The Cyprus legal system is largely based on English common law principles. This provides comfort through familiarity to international executives who conduct local or cross-border business through Cyprus. Cyprus law and regulations are formula ted to facilitate compliant transactions of businesses smoothly.
National Tax Framework
The national tax framework and incentives as well as international or bilateral treaties with countries worldwide remain useful business structuring tools. Cyprus has 12.5% corporate tax rate, limitless tax structuring opportunities and contemporary banking infrastructure.
EU and Eurozone Member
As a member of the European Union since 2004 and the Eurozone in 2008, Cyprus enhanced its role as robust and reliable destination for key players in various industries and sectors. The professional services industry evolved to cater for businesses of local and international clients, in line with the risks of the Digital Age and the challenges of globalisation. Cyprus is rapidly growing and enhancing its reputation as a reliable financial and capital management centre.
Cyprus has long been a fundamental, geostrategic location as the third largest island in the Mediterranean crossroads of Europe, Asia and Africa. It is well-regarded for its abundance of sun, exquisite hospitality and a growing, innovative business community.
Organisations ranging from private or family businesses, startups and multinationals establish headquarters in Cyprus. Cyprus offers quality, safety, education and culture. These benefits constitute the building blocks for a healthy and prosperous life of individuals and their families.
RELATED INSIGHTS FROM OUR PRIVATE CLIENT PRACTICE GROUP
OUR PRIVATE CLIENT PRACTICE GROUP
The Private Client Practice Group of our firm advises affluent individuals, family offices, C-suite executives and investors on a variety of matters with personalised solutions.
With our broad array of expertise, we identify and execute high-priority projects across all levels. Driven by our passion for delivering quality and results as well as building and maintaining exceptional relationships, we give immaculate attention to detail and offer unparalleled legal services to our clients.
We formulate and implement the most strategic, sustainable initiatives to protect their wealth through sustainable solutions. For instance, Cyprus trusts have consistently proven their strength as formidable tools in foreign, high-profile litigation proceedings, whereby the relevant rulings recognised the validity of the Cyprus trust.
Please find below an outline of the services offered by our Private Client Practice Group.
Please do not hesitate to contact us if you have any question or require any assistance in such matters.