Trusts & Funds

Cyprus International Trusts โ€” asset protection and succession planning

A Cyprus International Trust (CIT) is one of Europe's most flexible and tax-efficient trust structures. Used by HNW individuals and family offices for asset protection, succession planning, and tax neutrality.

Paphos medieval castle at dusk

Key Features

Cyprus International Trust advantages

Tax neutrality

A Cyprus International Trust is exempt from Cyprus tax on non-Cyprus source income and gains โ€” provided the settlor and beneficiaries are non-Cyprus residents.

Strong asset protection

Assets held in a CIT are protected from creditor claims. The fraudulent transfer claw-back period is just 2 years โ€” shorter than most offshore jurisdictions.

Flexible trust terms

CITs can last indefinitely (no rule against perpetuities), can hold shares in Cyprus and foreign companies, real estate, and financial assets.

Confidentiality

Cyprus trusts are not publicly registered. Beneficial ownership information is held privately with the Cyprus Bar Association.

Succession planning

Bypass forced heirship rules from your home country by placing assets in a CIT โ€” particularly relevant for Israeli, Russian, and Middle Eastern clients.

Alternative Investment Funds

Cyprus is a growing fund domicile under the Alternative Investment Fund Managers Directive (AIFMD). We assist with RAIF and regulated AIF structures.

Cyprus trusts โ€” common questions

Who can set up a Cyprus International Trust?

The settlor must be a non-Cyprus resident in the year prior to creating the trust. At least one trustee must be a Cyprus resident. Beneficiaries can be anyone, including Cyprus residents, but the trust income tax exemption only applies if beneficiaries are non-Cyprus residents.

Can a CIT hold Cyprus company shares?

Yes. A Cyprus International Trust can hold shares in Cyprus companies, foreign companies, real estate (including Cyprus property), and other assets. This makes it a powerful holding structure above an operating Cyprus company.

Is a Cyprus trust recognised internationally?

Cyprus is a signatory to the Hague Convention on the Law Applicable to Trusts. Cyprus trusts are recognised across EU jurisdictions and common law countries. This is particularly important for clients from Israel, the UK, and the UAE.

Structure your wealth through Cyprus

We work with HNWI and family offices to design bespoke Cyprus trust and fund structures. Confidential initial consultation available.