The financial structure known as trust or trust, which enjoys a smoothed tax regime and functional protection, has met the need to make changes in its provisions since the many restrictions and prohibitions contained in the original law have ceased to be relevant to the dizzying changes that occur in the world.
Those founders who reside in countries with high tax rates can reduce taxes on income or wealth by transferring assets to the international trust of Cyprus. With the use of an adequate tax structure, they can benefit from the Cyprus Double Taxation Act and the absence of liens on any income of the trust (if it is obtained from foreign sources). Our specialists explain at https://offshorecitizen.net a little more about trusts.
Confidentiality is guaranteed since there is no need to register or publish the financial statements of the trust. The trust document is the property of the interested parties and no other person has access to its content. In many foreign countries, when a person dies, their will becomes accessible to public control. In the case of the trust, the death of the trustee, as well as that of its founder, does not affect the validity of the trust.
In case several people intend to make a joint investment, the trust can become the basis for the cooperation and distribution of the financial results of their association.
Investment trust funds, banks, and other financial institutions can, as trustees, use the trust and the international business company to manage cash on behalf of their clients.
A trustee can maintain a property in favor of a minor who is not able to own real estate on their behalf using the Cyprus International Trust.
Fiduciaries can protect the family’s assets for future generations by keeping capital and property away from beneficiaries who may misuse them.
Through the Cyprus International Trust, a person can engage in philanthropic tasks, promote religious or artistic activities, or create a fund to support ongoing projects.
The assets can be placed in an international trust in Cyprus to protect the interests of the beneficiary; for example, to protect the inheritance of your child in case of divorce. A professional association can also count on the services of a trust in order to preserve personal assets and avoid their loss in legal proceedings.
Companies can, through this system, offer retirement programs and plans, as well as mechanisms for distributing benefits to their hired employees, which will form a class of beneficiaries. The trust provides the most effective method for grouping and distributing compensation payments, and has an additional advantage, the possibility of defining a set of rules designed according to specific circumstances.
Under the new law, the international trust of Cyprus can be transferred to another jurisdiction and, at the same time, the trust established in the jurisdiction of another country can be transferred to Cyprus. All this will help those partners who wish to move or take advantage of many of the benefits of Cyprus as a financial center.
The creation of an offshore trust on the island of Cyprus is carried out through the signature of the fiduciaries of a document establishing the fiduciary property in which the founders and beneficiaries are named.
The main changes in the new legislation are described below.
In trying to limit its application to its own inhabitants, the 1992 law did not specify the possibility of a change of residence in Cyprus to the founders of a trust. The subsequent approval of amendments has positively resolved this uncertainty in those cases in which the founder is not a taxpayer in the country only from the year prior to the creation of the trust. In addition, these amendments eliminate the restriction on resident tax beneficiaries of Cyprus and ownership of the real estate in the country. Therefore, the founders or beneficiaries can now be established in the territory.