The Cyprus International Trust (“CIT”) provides significant Wealth Preservation & Estate Planning possibilities to interested parties:
1. Income Only the income and profits of an international trust derived or deemed to derive from sources within Cyprus are subject to all taxes that are applicable in Cyprus, noting that dividends or interest received from Cyprus sources are not taxable. The beneficiary will not be taxed on any income derived from sources outside Cyprus.
2. Dividends or other income received by an International Trust from a Cyprus Company are neither taxable nor subject to withholding tax.
3. Capital Gains on the disposal of the non-Cyprus assets of an International Trust are not subject to capital gains tax in Cyprus. However, if the assets are situated in Cyprus then it is subject to Capital Gains Tax in Cyprus.
4. Estate Duty An International Trust created for Estate Planning purposes will not be subject to estate duty in Cyprus.
Moreover, the International Trust (Amending) Law of 2012 protects the CIT from foreign laws as it explicitly provides that any question relating to the validity or administration of a CIT or a disposition to a CIT shall be determined by the laws of Cyprus without reference to the law of any other jurisdiction, and that the law relating to inheritance or succession in force in Cyprus or any other country will not in any way affect the validity of the Cyprus International Trust or any transfer or disposition of property to it. Consequently:
1. The CIT supersedes all inheritance laws whether Cypriot or foreign, and;
2. No disposition to an CIT may be challenged on the basis that it contravenes the laws of another jurisdiction, such as, inter alia, forced-heirship laws, forced succession laws or inheritance laws or mandatory provisions of family law or laws prohibiting or not recognising trusts
The Cyprus International Trust is the most effective and modern Trust instrument available in: Wealth Protection | International Succession | International Estate Planning | International Tax Planning. Contact us for a confidential consultation.
