Family Offices are seeing growing popularity, as they offer efficient safeguarding of wealth, greater control, and operate a lower cost than alternative types of investment. When choosing a location, Family Offices look for the availability of skilled staff, a modern local tax regime, a tried, tested and up-to-date regulatory framework, and political stability. Cyprus offers all of these and more.
Cyprus is considered one of the most attractive tax jurisdictions in Europe offering multiple incentives and advantages to international companies and high-net-worth individuals.
at the crossroads of three continents
founded on UK Common Law
environment with one of the lowest corporate income tax rates in the EU at 12.5%
of double tax treaties
(except for disposal of real estate in Cyprus or shares of company holding real estate in Cyprus to the extent gains are attributable to the real estate holding)
There are various structures that may be set up in Cyprus for Family Offices, including family protection schemes (trusts) and collective investment schemes
The formation of trusts is recommended for the protection of assets, international tax planning, as a means of managing succession issues and as an aid in asset management. As Cyprus trusts are established in accordance with the Cyprus International Trusts Law of 1992, which follows the UK Common Law principles of equity with respect to the formation of trusts. Cyprus also ranks high as one of the most attractive jurisdictions for international tax planning as its transparent and modern legal system facilitates this.
and it protects the interests of beneficiaries as the assets within a Cyprus International Trust are segregated from the settlor’s funds
their property in perpetuity
in Cyprus operates according to the terms of the trust agreement/deed and is not limited by Law.
of assets and property anywhere in the world.
the income and profits of a Cyprus International Trust, which are acquired or are considered to be acquired from sources outside of Cyprus are not subject to any tax imposed in Cyprus.
is subject to strict confidentiality
of constitutional documents and financial statements of the Cyprus International Trust.
to contest by the creditors of the settlor unless it is proven at court that the trust was set up to defraud such creditors.