How to register an offshore trust in Cyprus
Registration of an offshore trust in Cyprus is relevant - the state is considered among the most attractive ones in the EU for opening a company. This is due to the low level of taxation and favorable legislation. To learn more about the nuances of registration, contact our experts at IT-OFFSHORE.
Opening an offshore trust in Cyprus in 2021 is in demand, as there is an opportunity to optimize taxes and protect assets. It is possible to plan estate matters, provide high privacy, and move to the country.
A trust is a structure that allows you to transfer the rights of ownership and management of assets to the founders. The establishment of the structure is done by drawing up a deed of trust.
The main advantages of a trust:
- No inheritance tax is required;
- There is no taxation on income that is earned in Cyprus, provided that an international trust is set up;
- The existence of the trust is possible for an unlimited period;
- Ability to obtain residency;
- Attractive tax policy.
One of the main purposes of registration is the possibility to optimize taxation. If a person resides in a state with a high level of taxes, there is an opportunity to reduce them legally. Double tax avoidance agreements can be used.
Confidentiality is ensured - the trust is not required to publish financial statements. This structure is suitable for co-investment, ownership of real estate and other assets, as well as carrying out charitable activities.
The nuances of registration
To register, it is necessary to provide the name of the structure, details about the trust and the timeframe for the establishment of the structure.
The expiration date of the trust is indicated. All transferred information is confidential. Only supervisory authorities have access to the data. The registries do not store personal data of beneficiaries and founders.
Claims and disputes that are associated with the work of the trusts are resolved according to the laws of Cyprus. All decisions that have been taken outside the jurisdiction are not valid. The founder of the trust has the right to liquidate or edit the charter and dispose of profits. The chief executive officer can be of any gender.