Cyprus International Trusts & Foundations

Asset Protection, Estate Planning & International Wealth Structuring

What We Provide

A Cyprus international trust can provide an effective structure for asset protection, estate planning, succession and long-term wealth management. Potens guides individuals, families and international clients through the formation and administration of trusts in Cyprus.

We also support the establishment of Cyprus foundations as an alternative wealth-planning structure. Our team evaluates each client’s objectives, family circumstances and international connections to help determine the most appropriate solution.

From initial structuring and documentation to ongoing administration and compliance, we provide clear, professional support throughout the entire process.

Understanding Trusts

A trust is a legal arrangement used for asset protection, estate planning, succession, and tax structuring. For a trust to exist, all three core elements must be satisfied:

1️⃣ Settlor

The individual who creates the trust and transfers assets for the benefit of others.

2️⃣ Trustee

The person or entity responsible for managing the trust assets.
Assets must be fully segregated from the trustee’s own assets.
Cash, for example, is held in separate offshore or designated accounts.

3️⃣ Beneficiaries

Those who will ultimately receive the benefit.
If multiple, their identity must always be ascertainable

Modern Use of Trusts

Originally used for estate planning and supporting individuals unable to manage assets, trusts today are also widely used for:

Understanding Foundations

A foundation is the civil law alternative to a trust, similar purpose, different structure.

How a Foundation Works

Created by a Founder
Assets are transferred to a Foundation Council / Board
Administered for the benefit of designated beneficiaries
Governed by a Constitution

Key Benefits

Once established, the foundation becomes a separate legal entity
Assets are protected from claims against the Founder
While held inside the foundation, assets are also protected from claims against beneficiaries
In some jurisdictions, foundations enjoy full tax exemptions (income tax, wealth tax, inheritance tax, real estate tax, sales/transfer taxes)

Advantages of Foundations

Confidentiality

No legal requirement to disclose the founder, beneficiaries, or protector.
The foundation charter may be signed by an attorney or trustee — no founder disclosure needed.

Operational Flexibility

Council members do not need to be founders.
Founders and council members may also be beneficiaries.
Meetings may be held anywhere in the world and proxies are allowed.

Flexible Structure

No maximum authorised capital requirement. Capital does not need to be paid at incorporation; no time limit for contributing it.
Founders, council members, beneficiaries, and protectors may be individuals or corporations of any nationality.
No limit on the number of founders, council members, beneficiaries, or protectors.

How It Works

01.

Initial Consultation

Identify goals: asset protection, tax planning, estate planning, or investment structuring.

02.

Structure Selection

Determine whether a trust or foundation best suits your needs.

03.

Formation & Documentation

Draft trust deeds or foundation charters and appoint trustees/council members.

04.

Asset Transfer Administration

Ensure proper segregation of assets and ongoing compliance.

Talk to Our Experts

Start your Cyprus company journey with confidence.
Our team is here to guide you through every step, from formation to ongoing management.