Cyprus Financial Services, Taxation and Trusts
Oneworld ltd are financial services advisors specializing in offshore financial services and Cyprus financial services, business advisory, corporate finance, accounting and payroll, VAT and customs.
International trusts are governed by the International Trusts Law of Cyprus. International trusts are not taxed in Cyprus.
Tax aspects
Cyprus trusts enjoy important tax advantages, providing significant tax planning opportunities to interested parties. The following advantages are indicative of the possible options for tax minimization: All income, whether trading or otherwise, of an international trust (ie a trust whose property is located and income is derived from outside Cyprus) is not taxable in Cyprus Dividends, interest or other income received by a trust from a Cyprus international business company are also neither taxable nor subject to withholding tax provided that the beneficiaries are not tax resident in Cyprus. Even though a trust with shares in a Cypriot company may not be an international trust, the exemption relies on the fact that Cyprus tax is imposed only on Cyprus residents. As the beneficiaries are not residents of Cyprus, no tax is imposed on the distributions made to the trust Gains on the disposal of the assets of an international trust are not subject to capital gains tax in Cyprus An alien who creates an international trust in Cyprus and retires in Cyprus is still exempt from tax if all the property settled and the income earned is abroad, even if he I a beneficiary An international trust created for estate duty planning purposes would not be subject to estate duty in Cyprus.