is the first choice for business immigration around the world. Its cultural diversity, economic and social
leadership and liberal open minded policies towards immigration, provide
newcomers to Canada with one of the highest qualities of life in the
world. Over 250,000 people from around
the world immigrate to Canada every year.
choosing to immigrate to Canada an individual has many matters to consider. These matters range from their immigration status,
to finding a suitable employment and a home, and ensuring their finances are in order
and in accordance with Canadian laws.
a newcomer becomes a resident of Canada they are responsible to report taxable
income earned on their worldwide assets. This
taxable income is then taxed in Canada at one of the highest income tax rates
in the world. As a result, many
newcomers to Canada are interested in identifying legitimate tax planning opportunities
which can reduce their Canadian tax burden and allow for an easier financial
transition into Canada.
Canadian government has put in place favorable tax laws for immigrants to
Canada that allow them to use an international trust to reduce their tax
burden. Many immigrants to Canada are
often not aware of these beneficial tax laws and do not effectively use them
in their immigration planning process.
an International Trust works?
The various types of trust vary in complexity but they
have some basic common characteristics.
A person (“the trustee”), being either an individual or a company,
agrees to hold certain assets (“the trust fund”) in its name for the benefit of
another person (“the beneficiary”) on certain terms and with certain powers
(which are usually set out in the Trust Deed). The assets comprising the trust
fund are legally held and registered as owned by the trustee, and the trustee
is under a duty, enforceable in the Cyprus Courts, to hold those assets and the income
arising from them for the benefit of the beneficiary(ies).
The other important parties of the trust are the
person that creates the trust (“the settlor”), and the person(s) that has the
power to restrict key powers of the trustee (“the protector”).
Uses of an International Trust
international trust is one that resides outside of Canada, usually in a trust
tax law allows for an individual immigrating to Canada to establish an international
trust whereby the newcomer can transfer some or all of their assets into the
trust, and for the first 60 months of residency in Canada earn income on those
assets which is exempt from Canadian tax.
These provisions in Canadian tax law are commonly refereed to as “tax
use of an international trust has other benefits as well. These can include the following:
jurisdictions for an International Trust
selecting the appropriate jurisdiction for the international trust to reside, a
newcomer to Canada should consider a jurisdiction that offers the following:
Cyprus can be the ideal jurisdiction for an International Trust?
recent years, Cyprus has emerged as a leader among global financial
centers. The use of the Cyprus
International Trust (“CIT”) has been growing and is quickly becoming a
preferred option to trust and estate planning professionals around the
world. Cyprus is emerging as a leader
for international trust formation and administration as a result of the
a Cypriot tax and legal point of view, some basic principles must apply when
structuring all CIT’s, and these include the following:
Canadian structuring issues are more complex, and are briefly outlined below:
& Associates (S&A) can assist you?
are leaders in the areas of trust formation and administration. Being Canadian professionals, we have
extensive experience in working with newcomers to Canada to establish,
structure, and administer immigration trusts.
We have forged strategic alliances with some of Canada’s leading
immigration lawyers and as such are well positioned to provide high level
advice on this important tax planning opportunity.
our firm’s head office is located in Nicosia Cyprus, the principals and
directors are Canadian citizens. We conduct
our business at the highest level of international standards, the Canadian
aim to provide newcomers to Canada with a cost effective immigration trust
structure that provides them with the full benefits afforded to them under Canadian
tax laws. Please feel free to contact us if you would like to discuss how we can be of assistance.