Asset protection inside the EU, with the treaty network.
The Cyprus International Trust under the 2012 amendment Law 20(I)/2012 is the only common-law-style asset-protection trust domiciled in an EU member state — delivering the protection of Cook Islands or Belize plus full EU substance, the Cyprus DTT-treaty network, and EU-banking access.
What makes Cyprus the right pick.
Combines EU-domicile and treaty access with serious common-law-style asset-protection law — a unique combination.
EU-domiciled trust
The only common-law-style asset-protection trust domiciled in an EU member state. Treaty access, EU banking, and EU regulatory framework all available.
2-year fraudulent-transfer SOL
Section 3 of the 1992 International Trusts Law (as amended in 2012) sets a 2-year statute of limitations on creditor challenges to settlor transfers.
Forced-heirship rules of foreign jurisdictions disregarded
Section 3(4) explicitly states that Cyprus courts will disregard foreign forced-heirship rules in determining trust validity. A Cyprus trust founded by a French or Spanish citizen overrides their home-country reserved-share rules.
0% Cyprus tax on foreign-source income for non-resident beneficiaries
If all beneficiaries are non-Cyprus tax residents, the trust pays no Cyprus tax on foreign-source income, regardless of its size or structure.
EU treaty network and DTT access
Cyprus has 60+ double-taxation treaties including with the US, UK, Russia, India, China, and most EU states. The trust can structure investment-flow planning that pure offshore trusts cannot.
Settlor and beneficiaries non-resident at settlement
The CIT framework requires the settlor and beneficiaries to be non-Cyprus-residents at the time of trust settlement. This is the key qualifying criterion — all other framework benefits flow from it.
When Cyprus is the right choice.
The fact patterns where this jurisdiction outperforms alternatives.
EU-mobility-focused HNW families
European families who value EU treaty access combined with asset-protection law typically prefer Cyprus to non-EU alternatives like Cook Islands or Belize.
US-person settlors needing DTT relief
The US-Cyprus DTT (in force since 1985) provides treaty-based withholding-tax reductions on US-source dividends and interest flowing into the trust.
Russian / CIS HNW asset protection
Pre-2022 Cyprus was the dominant jurisdiction for Russian and CIS family-office holdings. Post-sanctions the framework remains available to non-sanctioned individuals with proper KYC.
Cross-border IP and royalty structuring
Cyprus’s IP-Box regime combined with the trust framework delivers efficient royalty and license-flow structures across the EU and DTT-network.
Setup
Annual administration
Timeline
What clients ask before settling.
Pragmatic answers on the Cyprus framework specifically.
Why pick Cyprus over Cook Islands or Belize?
Can I be a beneficiary if I become Cyprus-resident later?
What about Cyprus’s reputation post-2013 banking crisis?
How does CRS reporting work?
Can a Cyprus trust hold real estate?
Ready to set up your Cyprus structure?
Book a strategy call and we’ll quote a complete formation-and-administration package within twenty-four hours.
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