At Sizinos and Co LLC, we recognize the importance of effective wealth management and protection, especially for high-net-worth individuals, families, and trustees. With extensive experience in this field, we have seen how Cyprus stands out as an ideal jurisdiction for establishing international trusts.

A Cyprus International Trust (CIT) allows for full foreign ownership, enabling asset owners (settlors) to transfer their assets to a trustee—whether an individual or a legal entity—who oversees these assets on behalf of the designated beneficiaries. CITs can accommodate various types of assets, such as cash, property, shares, and bonds, providing a flexible approach to wealth management and succession planning.

 

Why Choose a Cyprus International Trust?

Cyprus is an attractive destination for setting up international trusts, thanks to its advantageous tax regime, robust asset protection measures, and a contemporary legal framework that complies with global standards. The Cyprus International Trusts Law offers numerous benefits, including:

Advantages of Cyprus International Trusts

Cyprus International Trusts (CITs) provide numerous benefits, making them an excellent choice for effective wealth management and asset protection:

  • Tax Advantages: Non-resident beneficiaries are not liable for income tax on income earned from foreign sources. Additionally, there is no capital gains tax on asset sales, no inheritance tax, and no withholding tax on distributions to beneficiaries. Income from dividends, interest, and other non-Cypriot sources can also be accumulated and distributed without any tax consequences in Cyprus, ensuring significant tax efficiency.
  • Strong Asset Protection: CITs offer exceptional protection for assets, shielding them from creditor claims and other potential risks. Legal actions to challenge the transfer of assets into a trust can only be taken within two years of the transfer and must prove fraudulent intent. After this period, the assets are fully safeguarded.
  • High Level of Confidentiality: CITs ensure privacy, as the details of the trust are submitted to the Cyprus Securities and Exchange Commission (CySEC) but are not accessible to the public. This guarantees confidentiality while maintaining compliance with international standards for transparency and anti-money laundering.
  • Unlimited Duration and Adaptability: Unlike many other jurisdictions, Cyprus allows CITs to be established without any time restrictions, supporting long-term wealth management and succession planning. Additionally, CITs offer the flexibility to be re-domiciled to another jurisdiction, ensuring adaptability to changing needs.
  • Retained Control for Settlors: CITs allow settlors to maintain control over the trust by keeping certain powers, such as appointing or removing trustees or beneficiaries, giving binding instructions, and even amending or revoking the trust if necessary. This provides flexibility and peace of mind to adapt the trust to evolving circumstances.

 

Additional Benefits

  • Freedom of Asset Distribution: Unlike certain jurisdictions, Cyprus does not impose forced heirship rules on trusts, allowing settlors to distribute their assets at their absolute discretion.
  • Indefinite Duration: Cyprus International Trusts (CITs) can be structured with an indefinite duration, ensuring long-term asset protection and seamless wealth transfer across generations.

 

Modern and Comprehensive Legal Framework

Cyprus provides a robust and contemporary legal framework for the establishment and management of international trusts. The Cyprus International Trusts Law, which draws upon English common law principles, underwent a significant revision in 2012 to ensure compliance with international standards while maintaining its adaptability and competitiveness. The most recent amendment to the law occurred in 2013, with the repeal of Article 15, further enhancing the legislative structure.

 

Here’s why clients choose us:

At Sizinos & Co LLC, we offer unparalleled expertise and a client-centric approach to managing Cyprus International Trusts (CITs). Our team brings extensive experience and in-depth knowledge of both local and international trust laws, ensuring that your assets are protected and your wealth is managed with the utmost care and precision.

 

  • We assist clients and trustees with issues related to Cyprus International Trusts (CITs), including the authorities granted to trustees, the entitlements of beneficiaries, the interpretation of trust instruments, and the examination of relevant trust documentation.
  • We represent clients and trustees in both contentious and non-contentious legal disputes.
  • We create Private Trustee Companies (PTCs), as well as corporate protectors and enforcers, in Cyprus and other legal systems.
  • We provide legal assistance for setting up a Cyprus International Trust (CIT), offering strategic advice on establishing, managing, and dissolving a CIT, and preparing all required legal paperwork.
  • We deliver trustee services, as well as administrative, management, and related support.
  • We evaluate existing trusts for clients, offering insights on potential vulnerabilities or deficiencies.