Trust Formation & Administration

Tax Aspects of Cyprus Trusts

Cyprus International Trusts are structured to provide significant tax advantages. If the beneficiary is not a Cyprus tax resident, only income generated within Cyprus is subject to local tax regulations.

  • Foreign Income Exemption: Income from outside Cyprus is tax-free.
  • Dividend & Interest Exemptions: Dividends and interest from Cyprus companies are exempt if the beneficiaries are non-residents.
  • Capital Gains Exemption: Profits from asset disposals are not subject to capital gains tax.
  • Estate Planning Advantage: CITs help mitigate estate duties and inheritance tax liabilities.
  • Flexible Tax Residency: Non-resident settlers and beneficiaries benefit from tax-efficient structuring.

Local trusts, where either the settlor or beneficiary is a Cyprus resident, remain tax-transparent for income tax purposes.

Oneworld Ltd ensures clients leverage these tax benefits while maintaining full compliance with Cyprus regulations. Our team provides strategic tax planning advice to maximize the advantages of Cyprus International Trusts.

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