Amendments in Cyprus International Trusts Law

28.03.2012

Last week amendments were made to Cyprus International Trusts Law. The new law came into force on March 23, 2012.

Now both the settlor of the International Trust, and the beneficiary may become resident of Cyprus. All matters connected with the International Trust, will be governed by Cyprus Law and Cyprus Courts will have jurisdiction.

Powers of settlors expansion became an important novel. So, settlors, for example, can transfer to an enforcer some powers, including the right to liquidate the International trust, to sell or transfer property of a trust and to substitute of the trustees. All these innovations are provided in the new Law, allow the settlor to exercise a greater degree of control over the administration of the CIT.

Moreover, any real estate registered and located in the territory of Cyprus, may be the subject matter of the CIT. At last, we pay attention that new Law applies to new and existing CITs. 

Expert’s opinion

«Cyprus International Trusts Law, adopted in the republic in 1992, was one of the most perfect for that period in the world regarding the trust legislation. Since then it practically didn't change and wasn't added.

For this reason these amendments are so important, moreover Cyprus still should prove its steady state position.

It’s not a secret that most often registration of trusts is on the Isle of Man, Jersey or Guernsey. Their offshore status allows certain facility which wasn't provided in Cyprus.

Summing it up, a geographical and economic situation of the island is urged to prove the superiority in incorporation of International Trusts».

On the basis: www.cyprus.gov.cy

Lomakina Irina ( the director of Moscow office of Honest & Bright )