Trusts & Estate Planning in Cyprus

Comprehensive Legal Services in Trusts, Wills and Estate Structuring

At Papantoniou & Papantoniou LLC, we offer bespoke legal solutions in the creation, administration and restructuring of trusts and estate plans. Our services include the drafting of wills, trust deeds and related agreements, international tax planning, and the incorporation of trusts within corporate structures or through other legal and commercial vehicles. We guide clients through the entire process of establishing a trust — from structuring and drafting the Trust Deed to ongoing management and compliance.

Cyprus International Trusts (CITs)

The Cyprus International Trusts Law (L. 20(I)/2012), which came into force on 23 March 2012, significantly modernised the trust regime in Cyprus. It strengthened the jurisdiction’s position as one of the most attractive and secure locations globally for establishing and operating international trusts.

The law retains the flexible and confidential features of the original legislation while introducing modern protections and expanded powers for settlors and beneficiaries. All questions relating to a Cyprus International Trust are governed exclusively by Cyprus law, and Cypriot courts have jurisdiction over related matters.

Key Features of the Cyprus International Trusts Law

  • The settlor and beneficiaries of a CIT may now become Cyprus residents under defined conditions.
  • Cyprus law exclusively governs all matters related to a CIT, ensuring certainty and stability.
  • The principle of settlor reservation of powers is codified, allowing the settlor or protector to retain broad powers — including amendment, revocation, substitution of trustees and management of trust property.
  • Real estate located in Cyprus may be held as part of the trust assets.
  • The law applies to both new and existing CITs, enhancing their flexibility and longevity.

Types of Trusts Available in Cyprus

Discretionary Trust

Trustees are granted discretion in deciding how, when and to what extent beneficiaries receive distributions, allowing flexibility and asset protection.

Fixed Trust

Trustees have no discretion; they distribute income or capital to designated beneficiaries in accordance with fixed terms stated in the trust deed.

Protective Trust

Suitable for beneficiaries with potential financial vulnerabilities, this structure converts a fixed interest into discretionary upon defined events, such as insolvency or bankruptcy.

Trading Trust

Typically operated through a corporate trustee, this type of trust can conduct business activities and employ staff while protecting the underlying assets.

Tax Advantages of Cyprus International Trusts

Cyprus International Trusts enjoy significant tax benefits, making them a powerful vehicle for international estate planning and asset protection:

  • All income, whether trading or investment, is exempt from tax in Cyprus.
  • Dividends, interest and other income received from a Cyprus company are not taxable and not subject to withholding tax.
  • Capital gains on the disposal of trust assets are exempt from Cyprus capital gains tax.
  • No estate duty applies to CITs established for inheritance or estate planning purposes.
  • Trusts can serve as employment benefit schemes, inheritance structures or asset protection tools for individuals and businesses.

Who Can Establish a Cyprus International Trust

A Cyprus International Trust is suitable for individuals who:

  • Wish to protect assets and preserve wealth for future generations.
  • Seek confidentiality in ownership and management of assets or companies.
  • Plan to divert overseas income to a secure, professionally managed trust.
  • Require international estate and succession planning in a robust legal environment.

Why Choose Cyprus for Trust and Estate Planning

The Cyprus International Trusts Law (L. 20(I)/2012) consolidates Cyprus’s position as one of the most reliable and flexible trust jurisdictions worldwide. Combined with its favourable tax regime, EU membership, and established professional infrastructure, Cyprus offers a stable, transparent and cost-effective environment for estate and wealth planning.

Why Choose Papantoniou & Papantoniou LLC

With deep experience in Cyprus trust law and cross-border structuring, Papantoniou & Papantoniou LLC advises on every stage of trust establishment and administration. Our approach integrates legal, tax and commercial considerations to protect client interests and ensure full compliance with international standards.

Contact Our Trusts & Estate Planning Team

If you are considering establishing a trust or need tailored estate planning advice in Cyprus, our specialised team is ready to assist.

Papantoniou & Papantoniou LLC
📍 Katsoni 8, Ayioi Omoloyites, Nicosia, Cyprus
📞 +357 22817711
📧 info@paplaw.com.cy
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