Cyprus Trusts
Cyprus International Trusts: An EU-Based Solution for Private Wealth Planning
Cyprus, once a British colony, derives its trust law from English common law and equity, which were adopted during British rule. Before gaining independence, Cyprus enacted its own Trustee Law (Cap 193) in 1955, mirroring provisions of the English Trustee Act 1925.
Today, trusts in Cyprus are governed by the Cyprus International Trusts Law 69(I) of 1992 (the 'CIT Law'), which was amended in 2012. The updated CIT Law allows settlors to reserve powers to retain a beneficial interest in trust property or to act as protector or enforcer of the trust, all without compromising the trust's validity. This flexibility enables settlors to adapt to changing circumstances or objectives while maintaining control over trust assets.
CITs serve various purposes, including asset protection, asset management, and estate planning. In Cyprus, qualifying CITs enjoy tax neutrality, provided beneficiaries are non-Cyprus residents and the trust does not earn Cyprus-sourced income or hold immovable property within the country.
This modern approach to estate planning solidifies Cyprus's position as a preferred European hub for wealth management, succession planning, and asset protection structures.
