Cyprus International Trusts

A World-Class Trust Structure, Built for International Investors

 

Cyprus has quietly become one of the most respected jurisdictions for trust creation—combining English common law roots, modern statutory protection, and a tax-friendly environment. A Cyprus International Trust (CIT) gives international families and entrepreneurs a smart, legally robust way to protect assets, preserve wealth, and plan across generations.

 

At Horizon Associates, we help clients structure and oversee Cyprus trusts with care, confidentiality, and strategic insight. You don’t need to be resident in Cyprus to benefit—just globally minded.

 

Why Consider a Cyprus International Trust?

  • Strong Legal Foundation: Based on the English Trustee Act of 1925, enhanced by Cyprus’s International Trusts Law (amended 2012/13)

  • Asset Protection: Shields against future creditors, divorce, litigation, and political risk

  • Succession Planning: Freedom from forced heirship rules—design your legacy your way

  • Tax Neutrality: No tax on foreign income, capital gains, or inheritance for non-resident beneficiaries

  • Privacy: No public register. Disclosures only under court order or regulated access

  • Perpetual Duration: No expiry, no forced wind-up—ideal for long-term family wealth

Who Qualifies?

To establish a Cyprus International Trust, the following conditions must be met:

  • The settlor (person creating the trust) must be non-resident in Cyprus in the calendar year before the trust is created

  • The beneficiaries must also be non-resident in the same period (except for charitable trusts)

  • At least one trustee must be permanently resident in Cyprus

 

We work with fully licensed Cyprus trustees and ensure every detail is properly structured from the outset.

 

Types of Trusts We Can Structure

  • Discretionary Trusts – The most flexible and private form; ideal for protecting wealth, with distributions made at trustee discretion

  • Fixed Trusts – Where beneficiaries’ entitlements are predetermined

  • Trading Trusts – Allowing the trust to hold active business interests

  • Charitable Trusts – Used for philanthropy, often with tax reliefs

  • Hybrid or Customised Trusts – Combining features to suit family governance needs

Key Roles Within the Trust

  • Settlor – Transfers assets into trust and defines its purpose

  • Trustee – Holds legal title and manages the assets in the beneficiaries’ best interest

  • Protector (Optional) – An oversight role we often recommend. Can approve key decisions, appoint/remove trustees, or veto unwanted actions

  • Beneficiaries – Individuals or classes of persons the trust is set up to benefit

 

At Horizon, we do not act as the trustee, preserving our independence. However, we often serve as Protector, ensuring long-term alignment and safeguarding the family’s wishes.

Tax and Reporting Highlights

 

For non-Cyprus-resident beneficiaries:

  • ❌ No Cyprus income tax on foreign income

  • ❌ No capital gains tax

  • ❌ No estate duty

  • ❌ No withholding tax on distributions

  • ✔ Access to Cyprus’s double tax treaty network (where applicable)

 

Trusts with Cyprus-resident beneficiaries may be subject to local taxation rules. We’ll help structure the trust to match your global residency picture.

 

Cost Overview (Typical Range)

  • Setup Package: €4,300 – €12,000 incl. stamp duty, registration, and legal drafting

  • Annual Trustee/Admin Fees: €2,000 – €10,000+ depending on complexity and assets

  • Optional Protector Fee: Around €1,500/year

  • Accounting, legal, and compliance costs: As required

 

We’ll always provide an upfront fee schedule and work with experienced providers to ensure value and transparency.

 

Strategic Uses for a Cyprus Trust

  • Wealth Preservation – Lock assets away from threats

  • Multi-Generational Planning – Seamlessly transfer wealth to children or grandchildren

  • Estate Planning – Avoid probate delays and taxes in your home country

  • Business Holding – Own shares or manage joint ventures securely

  • Expatriate Security – Protect family wealth when relocating or retiring abroad

  • Education or Medical Trusts – Earmark funds for specific purposes

  • Philanthropy – Structure charitable giving tax-efficiently

Confidentiality & Compliance

  • No public register of trusts in Cyprus

  • All trustees are regulated by CySEC and must comply with full AML and due diligence protocols

  • The Cyprus Beneficial Ownership Register exists but is only accessible to regulatory authorities, and not to the general public

 

Why Horizon?

Discretion, clarity, and long-term perspective. Many of the enquiries we deal with in Cyprus worry about conflict of interest, or local entanglements. Horizon Associates operates with strict client NDAs, regulatory compliance, and a culture of silence. Your business is your own—we help you protect it.

 

Ready to Explore?

We’ll work with you and your legal advisors to explore whether a Cyprus trust fits your goals. Whether you’re moving to Cyprus, diversifying wealth, or just planning ahead, a CIT may be your ideal structure.

 

→ Contact us to arrange a confidential conversation.