A trust is established by an individual and is a means whereby property is held by one or more persons for the benefit of another or others. Trusts are considered to be very important from the tax perspective.
Tax Advantages of International Cyprus Trust
- There is a great number of double tax treaties to benefit from (Please follow the link for the Double Taxation Agreements)
- Any income of a Cyprus International Trust, whether trading or otherwise, is not taxable in Cyprus
- Dividends, interest or other income received by a Cyprus International Trust from a Cyprus international business company are not subject to tax
- Gains on the disposal of the assets of a Cyprus International Trust are not subject to tax in Cyprus
- A foreign individual who creates an International Trust in Cyprus and retires in Cyprus would be exempt from tax in Cyprus if all the property settled and the income earned is abroad, even if he is a beneficiary
- A Cyprus International Trust would not be subject to estate duty in Cyprus
The establishment, operation and regulation of International Collective Investment Schemes (ICIS) are governed by law since 1999 and regulated by the Central Bank of Cyprus which follows the rules and regulations of the relevant European Directives regarding investment funds.
ICIS can take the following legal forms:
- International fixed capital company
- International variable capital company
- International unit trust scheme and
- International investment limited partnership
Cyprus ICIS benefit from significant tax incentives. An ICIS is treated identically to any other Cypriot entity and in addition it has the following benefits.