A Cyprus international trust moves legal ownership of your holdings to a trustee, placing them beyond the reach of future creditors, forced heirship rules, and the personal exposure that comes with keeping wealth in your own name. That transfer is the whole mechanism. Everything else follows from it.
Most families who arrive here are solving one of three problems: succession across jurisdictions with incompatible inheritance regimes, exposure from a business or profession that carries litigation risk, or a wish to provide for someone whom local law would not allow to inherit: different problems, one instrument.
Not certain whether a trust fits your situation? A thirty-minute conversation with our private client team will tell you whether the structure suits your circumstances, or whether something simpler would serve you better. No charge, no obligation.
What a Cyprus International Trust Actually Does
The arrangement rests on a separation that most people find counterintuitive at first. You give away legal ownership. You do not give away benefit.
Because the settlor no longer owns what was transferred, a later claim against the settlor personally cannot reach those holdings. That is the protective logic in a single sentence.
Who Can Establish One
Three Statutory Conditions, All Must Hold
- The settlor, whether an individual or a corporate body, must not have been resident here during the calendar year preceding creation
- Beneficiaries, except charitable institutions, must likewise not have been resident during that preceding year.
- At least one trustee must be resident here throughout the arrangement’s life.
The Three Certainties
Beyond those, the general requirements of validity apply. The settlor must be of full age and sound mind, and the three certainties must be present:
- Certainty of intention. The deed must show a clear purpose to create the arrangement. Words of hope or wish, such as “I would like that”, fall short.
- Certainty of subject matter. Holdings must be identifiable. Cash, shares, movable and immovable property all qualify.
- Certainty of objects. Beneficiaries must be ascertainable, though not individually named. A defined class, such as a family, is sufficient.
One Point Worth Understanding Before You Proceed
The residence condition looks backwards, not forward. It tests where the settlor and beneficiaries stood in the year before creation. Becoming resident here afterwards does not invalidate an arrangement already validly formed, though it changes the tax position for that person. Timing matters more than most prospects expect.
What the Structure Protects Against
Protection is strong but not unlimited, and any adviser who describes it as absolute is overselling. What the legislation actually delivers:
Forced Heirship Immunity
Succession rules of any jurisdiction cannot invalidate a transfer, because the transfer occurs during the settlor’s lifetime.
Creditor Resistance
Later bankruptcy, liquidation or creditor action against the settlor cannot unwind the arrangement, whether or not it was created gratuitously or for the benefit of the settlor’s spouse or children.
A Defined Challenge Window
Creditors have two years from the date holdings were transferred to bring an action in the local courts. After that, the window closes.
Exclusive Jurisdiction
Absent an express foreign choice, proceedings against settlor, trustee or beneficiary can only be brought here.
Political Risk Reduction
Holdings sit under EU law with a trustee in a stable jurisdiction.
The exception matters. Protection falls away where a claimant proves the arrangement was created with intent to defraud that particular creditor, and the burden of proving it sits with the claimant. Structures built ahead of trouble hold. Structures built during trouble do not.
Privacy and the Register, Described Honestly
Many competitor pages still claim these arrangements carry no reporting duties. That statement was never quite right and is now plainly wrong, so here is the actual position.
A resident trustee must notify the relevant supervisory body within 15 days of creation, and within 15 days of any change, including termination. Supervision runs through CySEC, the Cyprus Bar Association or ICPAC depending on the trustee’s own regulator.
What Gets Recorded
- The arrangement’s name and creation date
- Trustee names and addresses
- Settlor particulars
- Protector details where one is appointed
- Beneficiaries, whether as identified individuals or as a class
- Any other natural person exercising effective control
Who Can See It — Access Runs in Tiers
- Competent authorities, meaning the Tax Department, Police, MOKAS and CySEC, have unrestricted access
- Regulated entities such as banks and professional firms may access records when conducting due diligence on a client
- Persons demonstrating a legitimate interest may apply, and access is limited to what the stated purpose requires
- The general public, commercial rivals and casual searchers have no access whatsoever
So the deed stays private, registered ownership stays away from the family, and the register is not open to anyone who simply wants to look. That is meaningful confidentiality. It is not secrecy, and the distinction is the honest one to draw with clients.
Tax Treatment
The regime turns on where the beneficiary sits, not on where the arrangement was formed:
Arrangements are generally transparent for tax purposes, so charges arise at beneficiary level rather than at the level of the arrangement itself. Where the structure holds an operating subsidiary, that entity is taxed ordinarily.
What It Costs
What it covers
Indicative cost
Figures move with the number of beneficiaries, the nature of what is being settled, and the depth of due diligence the ownership chain requires.
What We Handle, and What Stays With You
Handled by C. Savva & Associates
- Assessment of whether the structure suits your objectives, including saying so when it does not
- Deed drafting and structuring advice, with our partner firm on the legal drafting
- Provision of a qualified resident trustee from our own staff
- Due diligence on settlor, beneficiaries and the source of what is being settled
- Supervisory notification within the statutory window
- Ongoing administration, record maintenance and change notifications
- Formation and administration of any underlying holding entity
- Accounting and reporting for the structure
- Annual review against changes in law and practice
Retained by You
- The decision on who benefits and in what proportions
- Any letter of wishes guiding trustee discretion
- Funding of what is settled and the costs of running the arrangement
- Disclosure of the full ownership chain and source of wealth during onboarding
- Your own tax position in your country of residence, on which we coordinate with your local adviser
How Formation Runs
Straightforward arrangements complete inside a month. Where the ownership chain crosses several jurisdictions, or the source of wealth needs reconstruction, due diligence extends the timeline rather than the drafting.
Working With Our Partner Law Firm
C. Savva & Associates is not a law firm. For matters requiring legal expertise, the firm works alongside its partner law firm Nicholas Ktenas & Co., LLC, which provides legal counsel on corporate and commercial law, banking and finance, data protection, intellectual property, employment law, and trusts. Nicholas Ktenas has been recognised by Best Lawyers, Who’s Who Legal and Legal 500.
Deed drafting sits with them. Structuring, trusteeship and administration sit with us. You deal with one team throughout.
Why Structures Are Placed With Us
- Operating since 2009, across the banking crisis, the transparency reforms and the 2026 tax changes, so the arrangement you create has continuity behind it
- Regulated and licensed, with authorisations set out on our licensing page
- An ICAEW authorised training employer, which shapes how we recruit and supervise
- Trustees drawn from our own qualified staff, not outsourced, so the person holding legal title can answer questions about your family’s arrangement without preparation
- Tax advisory and trusteeship under one roof, meaning the people designing the structure administer it afterwards
- Professional memberships listed openly on our memberships page
- Clients including family offices, private equity principals and listed group founders across Europe, the CIS, North America and the Gulf
The People Who Would Handle Your File
The engagement will be led by Charles Savva, MBA, CA, TEP, Founder and Managing Director of Savva & Associates, who will have overall responsibility for the trusteeship and provide strategic oversight on all legal, tax and fiduciary matters.
The ongoing administration of the trust will be handled by Mina Pieri, FCCA, MBA, Senior Manager, who has extensive experience in the administration of international trusts, corporate structures, compliance, and private client services. Mina will act as the primary day-to-day contact, supported by our dedicated Private Client team, while Charles Savva will remain actively involved in all significant trustee decisions and matters requiring senior oversight.
What Happens When You Get in Touch
- You describe your family situation, what you want to protect, and where everyone is resident.
- A member of the private client team responds within one working day
- The first conversation runs thirty minutes and costs nothing
- We ask for identification, proof of address, and evidence of how the wealth arose
- A written proposal follows within a week, setting out whether the structure suits you
- Costed options arrive alongside it
- You decide whether to proceed, with no commitment before that point
Nothing is billed until you accept a written engagement letter. Where a trust is the wrong answer, we say so, and we have said so often enough to mean it.
Establish a Cyprus International Trust With Advisers Who Administer It Afterwards
Structures fail when the firm that drafted the deed hands administration to somebody else. Ours are designed, executed and run by the same team, which is why our trusteeships tend to last decades rather than years.
Send us an outline of your family situation and Charles Savva will come back to you personally with an initial view.
Call +357 22 516 671, message the team on WhatsApp, or write to us and expect a reply within one working day.
Frequently Asked Questions
What are the benefits of a Cyprus trust?
Wealth passes outside a will, so succession stays private and avoids probate delays across multiple countries. Forced heirship rules cannot invalidate lifetime transfers, which matters enormously for families connected to civil law jurisdictions. Creditors face a two-year challenge window that closes permanently. No estate duty or inheritance charge applies. Beneficiaries who live abroad face local taxation only on locally sourced amounts. The arrangement can run indefinitely, allowing provision for grandchildren not yet born.
What are the 4 types of trusts?
English-derived practice recognises four principal forms. Fixed arrangements give named beneficiaries defined entitlements the trustee cannot vary. Discretionary arrangements leave distribution decisions to the trustee, guided by a letter of wishes, and suit families whose circumstances may change. Bare or simple arrangements hold property for an absolutely entitled beneficiary, often a minor. Purpose arrangements serve an object rather than people, typically charitable. Most private client structures established here take the discretionary form.
What is the international trust law in Cyprus?
Two statutes operate together. The Trustees Law, Cap. 193, closely follows the English Trustee Act 1925 and supplies the general framework. The International Trusts Law 69(I) of 1992, substantially amended in 2012, adds the specific regime, including the residence conditions, creditor protections, exclusive jurisdiction provisions and the removal of any maximum duration. Equity principles and case law fill remaining gaps, which gives the regime the predictability that English-derived systems are valued for.
How much does it cost to open a trust in Cyprus?
Formation typically runs between €4,000 and €9,000, covering deed drafting, structuring advice, due diligence and the statutory notification. Annual trusteeship generally falls between €3,500 and €7,500, covering the professional trustee, record maintenance and ongoing notifications. An underlying holding entity adds from €2,500 annually. Complex arrangements spanning several jurisdictions or holding operating businesses are quoted individually. Due diligence depth, rather than drafting, is usually what moves the figure.
Can I keep control of the assets after transferring them?
Not directly, and any structure suggesting otherwise risks being treated as a sham. What you can do is appoint a protector with power to veto trustee decisions and to replace the trustee, and provide a letter of wishes guiding how discretion should be exercised. Those tools give meaningful influence while preserving the separation that makes the arrangement effective. A settlor who retains genuine control undermines the protection the structure exists to provide.
What happens if I later become resident in Cyprus?
The arrangement remains valid, since the residence condition tests the year before creation and is not an ongoing requirement. Your personal tax position changes, though. As a resident beneficiary, you become taxable here on worldwide amounts attributable to you, rather than on locally sourced ones only. Families planning eventual relocation should structure with that shift anticipated, and the non-domicile regime often softens the outcome considerably. Plan the move before it happens.
Can the structure hold Cyprus immovable property?
Yes. The 2012 amendment removed the earlier prohibition, so locally situated real estate can now be settled and held alongside foreign holdings. Practical considerations remain: transfer fees apply on settlement, and where the structure holds property through an underlying entity rather than directly, the treatment differs. We work through both routes at the proposal stage, because the right answer depends on what else the arrangement holds and where beneficiaries reside.
Key Considerations
The legal framework governing the establishment of CITs is based on the Trustees Law, Cap. 193, which largely follows the English Trustee Act of 1925, and the International Trusts Law No.69 (I)/92 as amended (the “Law” and “CIT Law”). The principles of equity and case law are also applicable.
In brief, the most important features can be summarised as follows:
Succession laws do not affect the validity of the transfer made to the CIT, as the transfer takes place during the lifetime of the Settlor.
The assets settled into the CIT are sheltered against potential claims. Subsequent bankruptcy or liquidation of the Settlor or creditor’s action against the Settlor – irrespective of whether the Trust was set up without consideration or to the benefit of the Settlor or his/her spouse or children unless it can be proven that the CIT was set up with the intention of the Settlor to defraud his creditors. There is a two-year time limit required from the date of transfer of Trust property into the CIT to file such an action with the Cyprus Courts.
The Trustee can invest Trust funds in any kind of investment. The income is accumulated for the whole perpetuity period with no forced distributions.
The Law imposes a duty of confidentiality on the Trustee, the protector, the enforcer or any other person concerned as regards the identity of the Settlor or any Beneficiary, the accounts and the assets of the Trust etc. Such information can only be revealed by a court order in any civil or criminal proceedings if the court is convinced that such information is material to the outcome of proceedings relevant to the Trust property or the parties to the Trust. This is also in line with the Trust register as this is kept by CySec, which, in order to reveal information about the settlor, beneficiaries, etc., there requires to be a legitimate interest in place.
In the absence of an express choice of foreign jurisdiction, proceedings against a settlor, trustee or beneficiary of a CIT can only be brought in the courts of Cyprus.
The amending law in 2012 introduced a uniform tax regime applicable to all persons on the basis of the tax residency test. Income and profits of a CIT which are earned or deemed to be earned from sources within and outside Cyprus are subject to every form of taxation imposed in Cyprus in the case of a beneficiary who is resident there. In the case of a non-resident beneficiary, only Cyprus source income and profits are subject to Cyprus tax.
For a valid Trust to be created the following criteria must be met:
The Settlor must be of full age and capacity (sound mind)
Three certainties must exist:
i. Certainty of intention: Evidence of express intention of the Settlor to create the Trust. This is usually evidenced by the Trust instrument. The test in determining whether the intention exists is based on the words used and from the behaviour of the parties; there is a distinct and clear intention that the property is to be held on trust for the benefit of a third party. Care must be taken with word choices since precatory words – that is words of mere hope and desire (i.e., “in the hope that”, “I would like that” etc.) – are not sufficient to create a Trust.
ii. Certainty of subject matter: This means that the Trust Assets must be readily identifiable otherwise the Trust is void for uncertainty, i.e., can be cash at bank, shares or other movable property, immovable property etc.;
iii. Certainty of objects: The identity of the beneficiaries of the Trust must be ascertained or ascertainable at the time of setting up the Trust. The beneficiaries may be a specified class of beneficiaries that is an ascertainable group of people, i.e., a family, company etc. It is therefore not necessary for each and every potential beneficiary to be identified by the Trustee.
Furthermore, according to the CIT Law, the following conditions must be met for the formation of a Cyprus International Trust:
The Settlor, whether a physical or legal person, must not be a resident of Cyprus during the calendar year which precedes the year of creation of the Trust.
At least one of the Trustees is, for the duration of the Trust, a Cyprus tax resident person.
The Beneficiary(ies), either physical or legal person(s), with the exception of a charitable institution, must not be a resident of Cyprus during the calendar year which precedes the year of creation of the Trust.
The Settlor can appoint a Protector, a person other than the Trustee, to whom powers of any nature have been granted by the Trust deed, including the power to veto the decisions of the Trustee and also to appoint or cancel the appointment of the Trustee.
In selecting the appropriate jurisdiction for the international Trust to reside, an individual should consider a jurisdiction that offers the following:
Favourable legal framework and existence of specific Trust Law.
Tax-effective treatment of Trusts.
Cost-effective Trust formation and qualified Trustee service providers.
Political and economic stability.
No exchange controls.
Cyprus has emerged as a leader in International Trust formation and Trust administration as a result of the following:
CIT Law is based on UK equity principles.
Cyprus is a full member of the European Union since 2004, contributing to an already stable economic, political and business environment.
Holding Trust Assets in secure custody.
There is no estate duty or inheritance tax in Cyprus.
No exchange control regulations.
There are no reporting requirements for international Trusts.
Cost-effective Trust jurisdiction, with easy access and no language barriers.
Competent and experienced professionals to establish and administer Trust structures.